The current financial market has reasonable and stable liquidity, while economic and financial operations are also stable, the People’s Bank of China said on its official website on Monday, Yicai.com reported.

The central bank pointed out that monetary credit and social financing have grown moderately. For example, by the end of May, M2 has increased by 8.3% from a year earlier. This suggests that overall liquidity tends to be stable.

Meanwhile, the interest rates have also stabilized. At present, the yield on 10-year China government bonds has fallen from nearly 4% at the end of last year to around 3.6%.

Insiders believe that the central bank’s statement at this time is to respond to the recent bond defaults, as well as to reaffirm the stability of the financial market amid the looming trade war between China and the United States.

From the beginning of this year, there have been four A-share listed companies involved in debt defaults, and some investors have started to worry about whether similar issues will eventually break out in more companies.