China Drains Cash from Banks, Disappointing Hopes for More Stimulus
- China drained cash from banking system via medium-term liquidity tool, first time since November 2022
- Extends cautious approach to monetary policy to support growth and yuan
- Withdrew 94B yuan, keeping 1-year policy loan rate steady at 2.5%
- Move disappoints hopes for more stimulus to reach 5% growth target
- Authorities likely gauging effect of past stimulus before further action
