Chinese Central Bank Made Net Injection of 20bn Yuan on Monday


The People’s Bank of China added 20 billion yuan in liquidity to Chinese financial markets on Monday via reverse repo operations.

On 22 January the Chinese central bank conducted 60 billion yuan in 7-day reverse repos, 40 billion yuan in 14-day reverse repos and 10 billion yuan in 63 day reverse repos.

On the same day 90 billion yuan in reverse repos matured, for a net injection of 20 billion yuan.

Last Friday PBOC made a net injection of 80 billion yuan, via 130 billion yuan in 7-day reverse repos, 90 billion yuan in 14-day reverse repos and 10-billion yuan in 63 day reverse-repos, versus the maturation 150 billion yuan in agreements.

Data from Wind indicates that 820 billion yuan of PBOC’s reverse repo agreements are scheduled to mature this week, including 90 billion on Monday, 170 billion on Tuesday, 170 billion on Wednesday, 120 billion on Thursday and 270 billion on Friday.

In addition to this 107 billion yuan in medium-term lending facilities are set to mature on Wednesday (24 January).

Analysts from Shenwan Hongyuan Securities said funds in January are expected to remain stable given the ample release of funds by the Chinese central bank.

According to Shenwan since the end of October PBOC has launched a raft of policies to prop up liquidity across the calendar new year as well as the Chinese new year.

The launch of the targeted reserve ratio reductions for Chinese commercial banks will also serve to boost liquidity levels in January.