After resuming 7-day reverse repos, the People's Bank of China stepped up liquidity injections, conducting 340 billion yuan of 7-day reverse repo operations on August 24, achieving a net injection of 340 billion yuan. The central bank also pre-announced on the same day that it would conduct a 500 billion yuan one-year medium-term lending facility operation via fixed quantity, interest rate bidding, and multiple price winning, and would carry out overnight reverse repo operations from August 27 to September 1, with daily operation volume not exceeding 600 billion yuan. This marked the second consecutive working day of injections after the central bank resumed 7-day reverse repo operations. Previously, on August 21, the central bank conducted 95 billion yuan of 7-day reverse repo operations, ending eight consecutive working days of zero net injection. Multiple institutions believe that the central bank's recent flexible mix of overnight and 7-day reverse repo tools reflects more precise liquidity management, aiming to protect funding conditions and prevent excessive upward movement in funding rates, while also guiding funding rates closer to the policy rate.
