China’s Central Bank Steps Up Liquidity Support Ahead of Quarter-End

The PBOC is leaning against the quarter-end cash squeeze with a broader toolkit than usual — a larger MLF rollover plus a raised overnight cap — signalling that pre-holiday funding stress is being treated as a priority rather than left to market self-correction. This matters most for banks and money-market participants who fund across the holiday, and it sits alongside fiscal tailwinds from government bond inflows and quarter-end spending that institutions already expect to keep pressure manageable. Whether the central bank keeps this multi-tenor approach once the holiday and quarter-end pass is the open question.