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China’s central bank injects net 1.014 trillion yuan via reverse repos

The People’s Bank of China injected a net 1.014 trillion yuan ($140 billion) into the banking system on Thursday through reverse repurchase agreements. It conducted 412 billion yuan of seven-day reverse repos at a 1.40% rate, unchanged from the previous operation, and 1 trillion yuan of overnight reverse repos, against 398 billion yuan of maturing reverse repos.

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AI take

The scale of the net injection, and the fact that it came mostly through the overnight tenor, points to a liquidity backstop aimed at short-term funding stress rather than a change in the policy stance — the seven-day rate was left untouched. That distinction matters for anyone tracking Chinese risk appetite, since it signals the PBOC is managing a plumbing problem, not easing conditions. Whether the central bank keeps leaning on overnight operations, or shifts back toward longer tenors once the squeeze passes, is the open question.

Generated by AI for reference only.

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