PBOC may up bond trading

Experts: Any such move shouldn't be misunderstood as quantitative easing

China's central bank will likely increase the trading of government bonds as a liquidity management tool, yet such a move should not be misunderstood as quantitative easing, officials and experts said.

It is appropriate for China to maintain the stability of monetary policy given the remaining scope of interest rate cuts, experts said, citing the likelihood for China to slightly cut policy benchmarks of interest rates in the second half of the year.

Financial News, a newspaper backed by the People's Bank of China, the country's central bank, reported on Tuesday that the trading of treasury bonds in the secondary market can be used as a liquidity management method and a reserve of monetary policy tools.