🚨 China Central Bank Liquidity Surge: Hundreds of Billions Injected, Are Opportunities on the Horizon? 🚨
The People's Bank of China (PBOC) is conducting a large-scale liquidity injection, continuously releasing massive funds into the market through reverse repos and other tools to stabilize the economy and the market.
📅 Key Operation Review:
June 2025: Injected 400 billion RMB (approximately 55.7 billion USD) through a 6-month reverse repo.
Early June 2025: Unexpectedly injected 1 trillion RMB (approximately 139 billion USD) through a 3-month reverse repo.
May 2025: Further injected 700 billion RMB and lowered the reserve requirement ratio to release 1 trillion in long-term liquidity.
🔍 Why is this important? ✅ Economic Support: The central bank releases funds at critical moments to support key areas such as technology, small and medium enterprises, and real estate. ✅ Market Safeguard: Stabilizes debt risks and buffers potential volatility from Sino-U.S. tensions. ✅ Yield Expectations: Analysts predict that if easing continues, China's 10-year government bond yield may drop to 1% by 2026.
📊 Market Predictions and Strategic Layout 1️⃣ Bond Bull Market May Start
The central bank may further purchase bonds in July-August, with long-term government bond prices expected to continue rising.
The 30-year government bond yield has risen by 0.35% after the injection, with more room for growth in the future.
2️⃣ Stock Market and Industry Opportunities
Large finance, technology, and real estate chains may benefit.
The consumer sector may also gradually recover due to the easing of funds.
💡 Core Conclusion: The PBOC is sending clear signals of easing, and liquidity will remain ample in the coming months. Whether in bonds or the stock market, positioning in advance is better than waiting for signal confirmation.