Forex Technical & Market Analysis FXCC Jul 01 2013

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[b]Forex Technical & Market Analysis FXCC Jul 01 2013

China top banking regulator says enough liquidity

The Chinese top banking regulatory body appeased fears over the credit crunch in the country, saying that liquidity remains ample for the interbank needs. Regulators reassured the markets by pledging to tighten risk controls over local government, real estate and shadow banking. The chairman of the China Banking Regulatory Commission, Mr. Shang, said "excess reserves more than double amount necessary", although Shanga failed to provide further details on how they intend to reduce shadow banking practices.

According to Bloomberg, citing Shang Fulin, "Banks had about 1.5 trillion yuan ($244.4 billion) of cash reserves as of June 28 that could be used for payment and settlement needs, more than double what is usually required." Mr. Shang added that