The Chinese central bank stepped up the volume of its reverse repo operations towards the end of the third quarter in a bid to maintain steady liquidity.
During the period from 26 – 30 September, the People’s Bank of China engaged in 521 billion yuan in 7-day reverse repo operations and 357 billion yuan in 14-day reverse repo operations, for the purpose of “maintaining the stability of end-of-quarter liquidity.”
A research report from Industrial Bank Co., Ltd. points out that from 27 to 30 September, PBOC engaged in over 100 billion yuan in 7-day reverse repo operations each day, which “sends positive signals for maintaining the stability of funds at the end of the quarter.”
During the week from 19 – 23 September, PBOC also undertook 10 billion yuan in 7-day reverse repo operations and 90 billion yuan in 14-day reverse repo operations.
