China's c.bank says has added $49.4 bln to money markets
BEIJING Dec 20 (Reuters) - China's central bank said on Friday it had added more than 300 billion yuan ($49.4 billion) to the country's money markets over three days in response to market moves, which have seen borrowing rates soar to their highest since a cash crunch in June.
The People's Bank of China said on its official Weibo account, China's version of Twitter, that the banking system had current excess reserves of more than 1.5 trillion yuan, a level it described as "relatively high" by historical standards.
The central bank did not make other direct references to the state of liquidity conditions in China's money market, but said major commercial banks should adjust their asset and liability structures to improve liquidity management.
Chinese money rates spiked for a third day on Friday to their highest since a cash crunch in June, raising fears that another liquidity squeeze was underway and driving mainland stocks sharply lower. ($1 = 6.0713 Chinese yuan) (Reporting by Koh Gui Qing and Aileen Wang; Editing by Mark Bendeich)