China ADR stock research

June 25 (Bloomberg) -- China’s benchmark money market rate declined for the first time in six days after the central bank injected cash into banks before the resumption of initial public offerings.

The People’s Bank of China added 115 billion yuan ($16.8 billion) of funds into the financial system this week, according to Goo Caomin, a fixed-income analyst at Industrial Bank Co. That is the biggest weekly injection of capital in five months. The central bank sold 50 billion yuan worth of 91-day bills today and scrapped open-market operations on Tuesday.

“It’s obvious the central bank is trying to maintain ample liquidity in the money market,” said Guo. “But the rates will have more upside risks once IPOs start.”

The seven-day repurchase rate was fixed at 1.13 percent at 11:30 a.m. Shanghai time, six basis points lower than yesterday.

China’s securities watchdog last week approved the nation’s first IPO following a nine-month moratorium. Guilin Sanjin Pharmaceutical Co., the country’s biggest producer of herbal lozenges, plans to sell about 634 million yuan of new shares this month, the company said on June 18. The stock will be offered to institutional investors and retail investors on June 29.

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