China Offers Record Cash Infusion to Keep Rates Low for Growth

China took a fresh step to ensure funding costs in its financial markets are sufficiently low so a tentative pickup in the nation’s economy can take hold.

The People’s Bank of China handed lenders a record sum of cash via a short-term liquidity tool on Friday, as an indicator for funding costs surged to the highest since April. The operation is a sign that Beijing hopes to iron out swings in rates so lenders are willing to support a higher issuance of government bonds and make more loans to clients — necessary steps for the nation to bolster its growth ...