PBOC moves to soothe markets over liquidity.

Chinese shares (FXI) staged a major recovery from an earlier pounding to close a mere -0.2% following speculation that the People's Bank of China would raise the white flag to China's "feral hogs" over its tough liquidity stance, which had caused short-term lending rates to go haywire. While the rumours proved to be a little enthusiastic, PBOC official did say the bank will guide rates to a "reasonable range" and be flexible in managing liquidity.