From the AFR:
China’s central bank said liquidity in the financial system was at a “reasonable level” on Monday, in its first direct comments since the country’s “credit crunch” began two weeks ago.
…In a separate statement, the PBoC said it would not cut the Reserve Requirement Ratio (RRR) to inject more liquidity into the banking system.
And from Bloomie:
The People’s Bank of China said the nation should “appropriately fine-tune” its policies, according to a statement yesterday that summarized the monetary policy committee’s second-quarter meeting in Beijing. The monetary authority gauged demand for sales of repurchase agreements and reverse repo contracts this morning, according to a trader at a primary dealer required to bid at the auctions.
