As China Pumps Liquidity, Concerns Over Financial Tightening

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Mark Melin
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As China is reported to have pumped $24.7 billion of liquidity into its financial system Tuesday to boost investor confidence, an HSBC report dives deeper into concerns regarding financial tightening among Chinese economic thinkers.   Financial Tightening? China’s aggressive move On Tuesday, China’s central bank injected its biggest one-day amount into the country’s leveraged financial system in four months, Dow Jones Newswires first reported. The move, executed through its daily money market operation, was intended to calm skittish investor nerves over excessive borrowing and potentially unsustainable debt to revenue ratios. Dow Jones noted the confidence-boosting move comes as tighter regulations…

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Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.