PBOC continues attempts to calm markets.

Chinese markets were calmer today as inter-bank market rates dropped further, although shares fell 0.4%, after the People's Bank of China said that it has provided liquidity to banks and that it will inject cash "based on the market's actual situation." The PBOC also said it will maintain its "prudent monetary policy," suggesting continued tightening. The comments reflect a further attempt by the PBOC to ease the credit crunch it engineered last week as a strategy to slow China's lending boom.