🚨SPECIAL NOTICE🚨
🇨🇳 The People's Bank of China has just injected an additional 161.2 billion yuan through reverse repo operations.
📊In the morning session on June 20, 2025, the People's Bank of China (PBOC) injected an additional 161.2 billion yuan into the banking system through 7-day reverse repo contracts, down from 203.5 billion yuan the day before. This is the only net injection this month, as the total reverse repo value so far has been lower than previous interventions in June to support short-term liquidity for financial institutions. Previously, PBOC unexpectedly injected 1 trillion yuan for a 3-month term and 400 billion yuan for a 6-month term on June 6 and June 16, in an emergency response to the maturing pressure of negotiable certificates of deposit (NCD) amounting to 4 trillion yuan this month.
📊Conclusion
The injection of 161.2 billion yuan through a 7-day reverse repo not only demonstrates the PBOC's flexibility in managing short-term liquidity but also conveys a message of maintaining "ample yet controlled liquidity" to support the economy without creating asset bubbles. Investors and businesses should closely monitor the reverse repo operations and macro indicators such as credit growth and inflation signals to assess the breadth of the monetary support package. In the long term, the PBOC still has many tools at hand (RRR, MLF, OMO) to regulate liquidity and interest rates, and the ability to intervene with reverse repo will continue to be an important part of China's financial market stabilization strategy.