The reason why the PBOC injected a large OMO is b/c it needs to stabilize this risk aversion (well, if u're a credit investor in China, be vigilant).
Chart below shows u how Chinese banking system funds itself – still by good old deposits & very little via inter-bank. pic.twitter.com/u0aDfLuJ2I
— Trinh (@Trinhnomics) May 29, 2019
Update: Investors w/ > CNY5bn or USD720m will get at least 70% of principal.
Those w/ 2-5bn will get at least 80% & those w/ 100-2bn will get at least 90% & anyone b/n CNY50-100m will get principal but no interest.
Most creditors have >CNY50m exposure & losses likely😬 pic.twitter.com/8QgtSkKHWM
— Trinh (@Trinhnomics) May 29, 2019