PBOC to inject up to 1 trillion yuan daily via overnight reverse repos over holiday period
The People's Bank of China announced on September 23 it will conduct overnight reverse repo operations on four consecutive working days from September 28 to October 8, with a daily cap of 1 trillion yuan, to manage short-term liquidity needs around the Mid-Autumn Festival, National Day holidays, and quarter-end. This follows the June introduction of the overnight reverse repo tool, which market participants view as normalized during special periods. The daily cap is higher than the 600 billion yuan limit used in late August and early September.
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China's Central Bank to Conduct Overnight Reverse Repo Operations for Four Consecutive Days
The People's Bank of China (PBOC) announced on September 23 that it will conduct overnight reverse repo operations on four consecutive working days from September 28 to October 8, with a daily cap of 1 trillion yuan. This move aims to better match short-term liquidity needs of the banking system, particularly around the Mid-Autumn Festival and National Day holidays as well as quarter-end. The PBOC had introduced the overnight reverse repo tool in June to improve liquidity management and short-end rate control precision. Market participants view the use of overnight reverse repos during special periods like month-end and quarter-end as becoming normalized. Analyst Zhao Zenghui from Changjiang Securities noted that the increased daily operation cap compared to previous rounds (600 billion yuan) may be used to smooth funding fluctuations. The article also quotes PBOC Deputy Governor Lu Lei stating that during the '15th Five-Year Plan' period, the central bank will further optimize its monetary policy framework, enhance the guiding role of policy rates, and improve the transmission mechanism from policy rates to market rates.
Read sourceChina's Central Bank to Conduct Overnight Reverse Repo Operations Up to 1 Trillion Yuan Daily
The People's Bank of China (PBOC) announced on September 23 that it will conduct overnight reverse repo operations on four consecutive working days from September 28 to October 8, using a fixed rate and quantity bidding, with a daily maximum of 1 trillion yuan. This move aims to better match banks' short-term liquidity needs during the period bridging the Mid-Autumn Festival and National Day holidays. The PBOC introduced the overnight reverse repo tool in June to improve liquidity management and short-term rate control. Market institutions view its use during month-end and quarter-end periods as normalized. Zhao Zenghui, chief fixed income analyst at Changjiang Securities, noted in a research report that the PBOC may adjust the daily operation cap to smooth out fund fluctuations, as institutions' holiday and cross-quarter reserve needs overlap. He added that even after mid-month tax payment pressures ease, fund demand may not drop significantly, making PBOC operations key to liquidity trends. Long-term, PBOC Deputy Governor Lu Lei stated on September 10 that during the '15th Five-Year Plan' period, the central bank will further reform its monetary policy framework, enhancing the guiding role of policy rates and smoothing transmission from policy rates to market benchmark rates and broader financial market rates.
Read sourceChina's Central Bank to Conduct Overnight Reverse Repo Operations for Four Consecutive Days
The People's Bank of China (PBOC) announced on September 23 that it will conduct overnight reverse repo operations on four consecutive working days from September 28 to October 8, 2025, to better match banks' short-term liquidity needs. Each daily operation will be capped at 1 trillion yuan, using a fixed rate and quantity bidding mechanism. This follows the PBOC's June 2025 optimization of its temporary repo tools, which added overnight reverse repos to improve liquidity management and short-term rate control. Market analysts view such operations as increasingly normalized during month-end and quarter-end periods. The overnight reverse repo tool is designed to smooth liquidity fluctuations, as some institutions have short-term needs of only two to three days during specific periods like fund cross-month transitions. Compared to previous overnight operations in late August and early September with a daily cap of 600 billion yuan, the new cap is significantly higher. Zhao Zenghui, chief fixed income analyst at Changjiang Securities Research Institute, noted that the PBOC may adjust operation limits to stabilize fund fluctuations, and that institutions may arrange cross-holiday and cross-quarter positions ahead of the Mid-Autumn Festival and National Day holidays. Looking ahead, PBOC Deputy Governor Lu Lei stated on September 10 that during the '15th Five-Year Plan' period, the central bank will further optimize China's modern monetary policy framework, enhance the guiding role of policy rates, and improve the transmission from policy rates to market benchmark rates and various financial market interest rates.
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China's Central Bank to Conduct Overnight Reverse Repo Operations Up to 1 Trillion Yuan
The People's Bank of China (PBOC) announced on September 23 that it will conduct overnight reverse repo operations on four consecutive working days from September 28 to October 8, with a daily cap of 1 trillion yuan. This move aims to better match short-term liquidity needs of the banking system, using a fixed rate and quantity bidding mechanism. The PBOC had introduced the overnight reverse repo tool in June to enhance liquidity management and short-end interest rate control. Market institutions generally view the use of overnight reverse repos during special periods like month-end and quarter-end as becoming normalized. Compared to previous operations in late August and early September, which had a daily cap of 600 billion yuan, the new cap is significantly higher. Zhao Zenghui, chief fixed income analyst at Changjiang Securities, noted in a research report that the PBOC may adjust the daily operation cap to smooth out fund fluctuations, as institutions' holiday reserve needs for the Mid-Autumn Festival and National Day overlap with quarter-end demands. Long-term, PBOC Deputy Governor Lu Lei stated that during the '15th Five-Year Plan' period, the central bank will further optimize its modern monetary policy framework to enhance the guiding role of policy rates and improve transmission.
Read sourceChina's central bank uses multiple tools to ensure smooth liquidity across month and quarter end
According to a China Securities Journal article published on September 21, the People's Bank of China (PBOC) is employing a combination of overnight, 7-day, and 14-day reverse repurchase agreements, along with medium-term lending facilities and buy-now-sell-back reverse repos, to manage liquidity. Analysts cited in the article, including Zhao Zenghui from Changjiang Securities, Ming Ming from CITIC Securities, and Liu Yu from Industrial Securities, expect the central bank's proactive and flexible approach to ensure stable funding conditions across the month-end and quarter-end periods. The article notes that the PBOC has already restarted 14-day reverse repos and may use overnight repos again at quarter-end. Experts such as Wang Qing from Dongfang Jincheng and Zhang Di from China Galaxy Securities suggest that further monetary easing is possible, with policy coordination to support government bond issuance and the 800 billion yuan policy financial instruments, as part of counter-cyclical adjustment measures.
Read sourceChina's central bank uses multiple tools to ensure smooth liquidity across month and quarter end
According to a China Securities Journal article published on September 21, the People's Bank of China (PBOC) is employing a combination of overnight, 7-day, and 14-day reverse repo operations to manage liquidity more flexibly. Wind data shows 272 billion yuan in 7-day reverse repos will mature this week (September 21-24). Experts cited in the article, including Zhao Zenghui from Changjiang Securities, Ming Ming from CITIC Securities, and Liu Yu from Industrial Securities, note that the PBOC has adopted a preemptive and demand-based approach, with overnight reverse repos improving policy rate transmission. The central bank has already restarted 14-day reverse repos to signal support for cross-holiday and cross-quarter needs. Analysts expect liquidity to remain stable despite large government bond payments (544.3 billion yuan net this week) and seasonal pressures. Wang Qing from Dongfang Jincheng and Zhang Di from China Galaxy Securities suggest further monetary easing is possible, with medium-term tools like pledged supplementary lending and MLF likely to increase to support government bond issuance and bank lending as part of counter-cyclical adjustment.
Read sourceChina's central bank uses multiple tools to ensure smooth liquidity across month and quarter end
According to a China Securities Journal article published on September 21, the People's Bank of China (PBOC) is employing a combination of overnight, 7-day, and 14-day reverse repo operations, along with medium-term lending facilities (MLF) and buyout reverse repos, to manage liquidity. Wind data shows 272 billion yuan in 7-day reverse repos maturing this week. Experts cited in the article, including Zhao Zenghui from Changjiang Securities, Ming Ming from CITIC Securities, and Liu Yu from Industrial Securities, note that the PBOC's approach is becoming more precise and accommodative. They expect liquidity to remain stable despite upcoming tax payments, government bond settlements, and quarter-end pressures. The article also highlights that the PBOC is likely to continue increasing medium-term liquidity tools to support government bond issuance and bank lending, as part of a broader counter-cyclical adjustment policy to support economic growth.
Read sourcePBOC Uses Multiple Tools to Flexibly Hedge, Ensuring Smooth Month-End and Quarter-End Liquidity
According to a China Securities Journal article published on September 21, the People's Bank of China (PBOC) is employing a combination of short-term liquidity tools, including overnight, 7-day, and 14-day reverse repos, to manage funding conditions. Wind data shows 272 billion yuan in 7-day reverse repos maturing this week. Experts cited in the article, such as Zhao Zenghui from Changjiang Securities and Ming Ming from CITIC Securities, note that the PBOC's approach is becoming more precise and proactive, with preemptive operations ahead of tax payments and government bond settlements. The central bank has resumed 14-day reverse repo operations and may use overnight repos again at quarter-end. Analysts from兴业证券, 天风证券, and 东方金诚 expect liquidity to remain stable across the month-end and quarter-end, despite large government bond net payments of 544.3 billion yuan this week. They also anticipate further monetary easing to support fiscal policy and government bond issuance, including potential increases in medium-term lending facility (MLF) and outright reverse repo operations.
Read sourcePBOC Uses Multiple Tools to Flexibly Hedge, Ensuring Smooth Month-End and Quarter-End Liquidity
According to a report by Xinhua and China Securities Journal, the People's Bank of China (PBOC) is employing a combination of short-term liquidity tools, including overnight, 7-day, and 14-day reverse repos, to manage funding conditions. Experts cited in the article, such as Zhao Zenghui from Changjiang Securities and Ming Ming from CITIC Securities, note that this approach increases flexibility and precision in liquidity management. The PBOC has preemptively signaled support by restarting 14-day reverse repos ahead of the week of September 21-24, which faces cross-holiday demand and large government bond settlements (net payments of 544.3 billion yuan). Analysts from兴业证券 (Industrial Securities) and天风证券 (TF Securities) predict that while the funding environment may tighten moderately, significant seasonal volatility is unlikely due to the central bank's proactive stance. Looking ahead, economists including Wang Qing from东方金诚 (Golden Credit Rating) and Zhang Di from China Galaxy Securities expect further monetary easing to support fiscal policy, including increased issuance of government bonds and政策性金融工具 (policy-based financial instruments), with medium-term liquidity tools like MLF and buyout reverse repos likely to be expanded.
Read sourceChina's central bank uses multiple tools to ensure smooth month-end and quarter-end liquidity
An article published by China Securities Journal on September 21 reports that the People's Bank of China (PBOC) is employing a combination of short-term liquidity tools, including overnight, 7-day, and 14-day reverse repos, to manage funding conditions ahead of month-end and quarter-end. Wind data shows 272 billion yuan in 7-day reverse repos will mature this week. Experts cited in the article, including Zhao Zenghui from Changjiang Securities and Ming Ming from CITIC Securities, note that the PBOC's liquidity management has become more flexible and precise, with preemptive operations and on-demand injections. The overnight reverse repo is being used more frequently to improve short-term rate transmission. A new buyout reverse repo mechanism is also being developed to complement medium-term lending facilities. Analysts from兴业证券, 天风证券, and 中国银河证券 expect the PBOC to continue using a mix of tools to smooth volatility from government bond issuance and seasonal factors, maintaining ample liquidity. The article concludes that monetary policy has room to ease further to support fiscal policy and economic growth, with medium-term tools likely to be expanded.
PBOC Uses Multiple Tools to Flexibly Hedge, Ensuring Smooth Month-End and Quarter-End Liquidity
According to a China Securities Journal article published on September 21, the People's Bank of China (PBOC) is employing a combination of overnight, 7-day, and 14-day reverse repos, along with medium-term lending facilities (MLF) and buy-now-sell-back reverse repos, to manage liquidity. Wind data shows 272 billion yuan in 7-day reverse repos will mature this week. Experts cited in the article, including Zhao Zenghui from Changjiang Securities and Ming Ming from CITIC Securities, state that the PBOC's approach is more flexible and precise, effectively smoothing short-term fluctuations. They note that the PBOC has preemptively signaled support by restarting 14-day reverse repos ahead of the quarter-end and holiday period. Analysts from兴业证券 (Industrial Securities), 天风证券 (TF Securities), and 中国银河证券 (China Galaxy Securities) forecast that liquidity will remain stable despite large government bond payments, with the PBOC expected to continue using various tools to support fiscal policy and maintain ample liquidity. The article concludes that monetary policy has room to further ease to support economic growth.
Read sourceChina's central bank uses multiple tools to ensure smooth month-end and quarter-end liquidity
According to a Xinhua report citing China Securities Journal, China's central bank is employing a combination of short-term liquidity tools, including overnight, 7-day, and 14-day reverse repos, to manage funding conditions ahead of month-end and quarter-end. Wind data shows 272 billion yuan in 7-day reverse repos maturing this week (Sept 21-24). Experts note the central bank's liquidity management has become more flexible and precise, with preemptive operations and on-demand injections. The overnight reverse repo is being used more frequently to improve short-term rate transmission. Analysts from Changjiang Securities, CITIC Securities, and others expect the money market to remain stable despite large government bond settlements (estimated 544.3 billion yuan net payments this week) and cross-quarter demand. The 14-day reverse repo has resumed, and the overnight reverse repo may be used again at quarter-end. Looking ahead, analysts from China Galaxy Securities and Dongfang Jincheng expect further monetary easing to support fiscal policy coordination, including increased medium-term lending facility (MLF) and buy-type reverse repo operations to fund government bond issuance and bank lending, as part of counter-cyclical adjustment.
Read sourceChina's central bank uses multiple tools to ensure smooth month-end and quarter-end liquidity
According to a report by Xinhua News Agency and China Securities Journal, China's central bank is employing a combination of short-term liquidity tools, including overnight, 7-day, and 14-day reverse repos, to manage funding conditions. Experts cited in the article, such as Zhao Zenghui from Changjiang Securities and Ming Ming from CITIC Securities, note that the central bank's operations are becoming more precise and flexible, with a preemptive approach to offsetting tax payments and government bond settlements. The article forecasts that money market rates will remain stable through the end of the month and quarter, despite a large government bond net payment of 5443 billion yuan this week. Analysts from institutions like兴业证券 (Industrial Securities) and 天风证券 (TF Securities) expect the central bank to continue using a mix of tools to smooth volatility. The report also highlights that the central bank has room to further ease policy to support economic growth and coordinate with fiscal policy, including increasing medium-term liquidity tools like buyout reverse repos and MLF to facilitate government bond issuance and bank lending.
Read sourceChina's central bank uses multiple tools to ensure smooth month-end and quarter-end liquidity
According to a China Securities Journal article published on September 21, the People's Bank of China (PBOC) is employing a combination of short-term liquidity tools, including overnight, 7-day, and 14-day reverse repos, to manage funding conditions. Wind data shows 272 billion yuan in 7-day reverse repos will mature this week. Experts cited in the article, including Zhao Zenghui from Changjiang Securities and Ming Ming from CITIC Securities, note that the PBOC's liquidity management has become more precise and proactive, with tools like overnight reverse repos improving policy rate transmission. The article forecasts that the money market will remain stable through the month-end and quarter-end periods, despite factors such as government bond settlements and cross-holiday demand. Analysts from兴业证券, 天风证券, and 中国银河证券 expect the PBOC to continue using a mix of tools to smooth rate fluctuations. The article also highlights that the PBOC is building a medium-term liquidity mechanism via buy-now-sell-back reverse repos, and that further monetary easing is possible to support fiscal policy and economic growth.
Read sourceChina's Central Bank Uses Multiple Tools to Ensure Smooth Liquidity Across Month and Quarter End
According to a China Securities Journal article published on September 21, the People's Bank of China (PBOC) is employing a combination of short-term liquidity tools, including overnight, 7-day, and 14-day reverse repos, to manage funding conditions ahead of month-end and quarter-end. Wind data shows 272 billion yuan in 7-day reverse repos maturing this week. Experts cited in the article note that the PBOC's liquidity management has become more flexible and precise, with preemptive operations and on-demand injections. The central bank has already restarted 14-day reverse repo operations and is expected to use overnight repos again at quarter-end to smooth volatility. Analysts from Changjiang Securities, CITIC Securities,兴业证券, and 天风证券 forecast that liquidity will remain stable despite large government bond settlements (estimated at 544.3 billion yuan this week). The article also highlights that the PBOC is building a medium-term liquidity mechanism via buyout reverse repos, complementing MLF operations. Economists from China Galaxy Securities and东方金诚 suggest that monetary policy has room to ease further to support fiscal policy and government bond issuance, with medium-term tools likely to be expanded.
Read sourcePBOC Uses Multiple Tools to Flexibly Hedge, Ensuring Smooth Month-End and Quarter-End Liquidity
According to a China Securities Journal article published on September 21, the People's Bank of China (PBOC) is employing a combination of overnight, 7-day, and 14-day reverse repos, along with medium-term lending facilities (MLF) and a new outright reverse repo mechanism, to manage liquidity. Experts cited in the article, including Zhao Zenghui of Changjiang Securities, Ming Ming of CITIC Securities, and Liu Yu of Industrial Securities, note that this approach increases flexibility and precision in smoothing short-term fluctuations. The article states that 272 billion yuan in 7-day reverse repos will mature this week (September 21-24). Analysts predict that despite large government bond payments (544.3 billion yuan net) and cross-quarter demand, the PBOC's proactive stance—including restarting 14-day reverse repos and potential overnight operations—will keep money market rates stable. Wang Qing of Dongfang Jincheng and Zhang Di of China Galaxy Securities expect further easing to support fiscal policy and government bond issuance, with medium-term tools likely to be expanded.
Read sourceChina's central bank uses multiple tools to ensure smooth month-end and quarter-end liquidity
According to a China Securities Journal article published on September 21, the People's Bank of China (PBOC) is employing a combination of short-term liquidity tools, including overnight, 7-day, and 14-day reverse repos, to manage funding conditions ahead of month-end and quarter-end. Wind data shows 272 billion yuan in 7-day reverse repos maturing this week. Experts cited in the article, including Zhao Zenghui from Changjiang Securities and Ming Ming from CITIC Securities, note that the PBOC's liquidity management has become more flexible and precise, with overnight reverse repos increasingly used to smooth short-term volatility. The PBOC has also restarted 14-day reverse repo operations to signal support for cross-holiday and cross-quarter funding. Analysts from兴业证券, 天风证券, and 中国银河证券 expect money market rates to remain stable despite large government bond settlements (544.3 billion yuan net payments this week). Wang Qing from东方金诚 forecasts that medium-term tools like MLF and buyout reverse repos will be expanded to support government bond issuance and bank lending, as part of counter-cyclical policy adjustments.
Read sourcePBOC Uses Multiple Tools to Flexibly Hedge, Ensuring Smooth Month-End and Quarter-End Liquidity
According to a China Securities Journal article published on September 21, the People's Bank of China (PBOC) is employing a combination of short-term liquidity tools, including overnight, 7-day, and 14-day reverse repos, to manage funding conditions. Wind data shows 272 billion yuan in 7-day reverse repos maturing this week. Experts cited in the article, including Zhao Zenghui from Changjiang Securities and Ming Ming from CITIC Securities, note that the PBOC's approach is becoming more precise and proactive, with pre-emptive operations ahead of tax payments and government bond settlements. The PBOC has restarted 14-day reverse repos and may use overnight repos again at quarter-end. Analysts from兴业证券, 天风证券, and 中国银河证券 forecast that liquidity will remain stable across the month-end and quarter-end period, despite large government bond net payments of 544.3 billion yuan this week. The article also highlights that the PBOC is building a medium-term liquidity mechanism via buyout reverse repos, and that further easing is expected to support fiscal policy and government bond issuance, as part of counter-cyclical adjustment.
Read sourceChina's central bank uses multiple tools to ensure smooth liquidity across month and quarter end
According to a China Securities Journal article published on September 21, the People's Bank of China (PBOC) is employing a combination of overnight, 7-day, and 14-day reverse repo operations, along with medium-term lending facilities (MLF) and buyout reverse repos, to manage liquidity. Wind data shows 272 billion yuan in 7-day reverse repos will mature this week. Experts cited in the article, including Zhao Zenghui from Changjiang Securities, Ming Ming from CITIC Securities, Liu Yu from兴业证券, and Tan Yiming from Tianfeng Securities, state that the PBOC's liquidity management has become more precise and proactive. They note that the central bank has preemptively signaled support by restarting 14-day reverse repos and may use overnight repos again at quarter-end. While large government bond payments (544.3 billion yuan net this week) and cross-quarter demand may cause some tightening, experts expect the money market to remain stable. Analysts from China Galaxy Securities and东方金诚 suggest that monetary policy has room to ease further to support fiscal policy and economic growth, with medium-term tools likely to be expanded.
Read sourcePBOC Uses Multiple Tools to Flexibly Hedge, Ensuring Smooth Month-End and Quarter-End Liquidity
According to a China Securities Journal article published on September 21, the People's Bank of China (PBOC) is employing a combination of short-term liquidity tools, including overnight, 7-day, and 14-day reverse repos, to manage funding conditions. Wind data shows 272 billion yuan in 7-day reverse repos maturing this week. Experts cited in the article, including Zhao Zenghui from Changjiang Securities and Ming Ming from CITIC Securities, note that the PBOC's liquidity management has become more precise and proactive, with preemptive operations ahead of tax payments and government bond settlements. The central bank has resumed 14-day reverse repo operations and may use overnight repos again at quarter-end. Analysts from兴业证券, 天风证券, and 东方金诚 forecast that money market rates will remain stable despite large government bond net payments (estimated at 544.3 billion yuan this week) and cross-quarter demand. The article also highlights that the PBOC is building a medium-term liquidity mechanism via buy-now-sell-back reverse repos, and that further monetary easing is expected to support fiscal policy and government bond issuance as part of counter-cyclical adjustments.
Read source