Stocks tumble again following new Chinese manufacturing survey
A new survey showing China's giant manufacturing sector shrinking at its fastest pace in three years, and its services sector cooling, sent global stocks and commodity prices tumbling again today.  China's central bank, the People's Bank of China, also injected another RMB 140bn ($21.96bn) into its banks today, which follows its RMB 280bn ($43.92bn) it injected in total last week, in a bid to prop up the yuan.  There are concerns that too many injections of cash could bring unnecessary additional depreciation pressure on the economy.  Analysts are predicting China's leaders to make more clumsy moves that will startle shell-shocked Chinese investors, primarily its middle class, and may send stocks even lower.
China’s central bank injected 140 billion yuan ($21.96 billion) into banks through its short-term lending operations (SLO) tool on Monday, according to a statement published on the central bank website.

The interest rate on the 6-day day lines of credit will be 2.35 percent, the same as last Friday’s SLO, the bank said.

Last week the central bank injected a total of 280 billion yuan ($43.92 billion) through two separate SLOs.

The People’s Bank of China launched SLOs in 2013 to supplement its other monetary policy tools. The facility is mainly used to provide one- to three-day direct lines of credit to commercial banks, though loans with other maturities are occasionally used.

via CNBC

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