Talking at China's Business Summit, China's Vice Premier Zeng Peiyan said China would adjust its money supply and credit and take "comprehensive measures to mop up liquidity in the banking system".
Perhaps even more to the point, China's M2 measure of money supply was up 19.5% this November compared to last (Want China Times, quoting China's Southern Weekly, has an excellent, concise article on this subject here, and really nails the issue on its head).
Also pressuring the market are expectations that funding conditions in China's short-term money market will get tighter toward the end of the year, when demand for cash typically surges for gift purchases and bonus payment, analysts said.