It has been a while since the PBOC engaged in some "targeted" QE. So clearly following the biggest drop in the Shanghai Composite in 6 months after some abysmal Chinese economic and flow data in the past several days, it's time for some more. From Bloomberg: CHINA’S PBOC STARTS 500B YUAN SLF TODAY, SINA.COM SAYS PBOC PROVIDES 500B YUAN LIQUIDITY TO CHINA’S TOP 5 BANKS: SINA Confused what the SLF is? Here is a reminder, from our February coverage of this "stealth QE" instrument. * * * The topic of China's inevitable financial crisis, and the open question of how it will subsequently bail out its banks is quite ... (full story)