MNI China Press Digest Wednesday 3: PBOC, Vanke, SOE Assets

Highlights from Chinese press reports on Wednesday:

• The People’s Bank of China (PBOC) injected a net CNY50 billion through open-market Treasury bond purchases in November, marking the second consecutive month of such operations, Securities Daily reported. In addition, the PBOC provided a net CNY500 billion via outright reverse repos and CNY100 billion through the Medium-Term Lending Facility (MLF). According to Wang Qing, chief macro analyst at Orient Jincheng, the PBOC’s consecutive monthly injections of long-term liquidity through Treasury bond transactions underscore a continued supportive monetary policy stance, sending a steady signal of growth stabilisation that is expected to bolster macroeconomic performance in the fourth quarter of this year and the first quarter of next year.
• Property developer Vanke’s recent bond turmoil will have only a limited impact on the banking system, according to most research institutions, with market focus shifting from systemic risk to the differentiated effects on individual banks, Yicai reported. Sun Binbin, a director at Caitong Securities, noted that based on 2025 reports, only two mutual funds held Vanke bonds, while the majority of holdings were concentrated among large wealth-management products and banking institutions with strong capacity to absorb volatility.
• Many localities have intensified efforts to activate state-owned assets, resources and funds, amid a backdrop of sluggish fiscal revenue growth, worsening fiscal imbalances and rising debt pressures, Yicai reported. Hu Hengsong, deputy general manager at Caida Securities, said local governments can support key priorities such as public-service provision and industrial upgrading by enabling idle assets to generate sustainable returns through more efficient operations. He noted that financing raised through compliant channels, such as special-purpose bonds, remains subject to strict usage constraints and cannot fully meet the diverse funding needs of regional development. Across the country, numerous examples of assetization, securitisation and leverage-based revitalisation have emerged. In Anhui, Communications Holdings injected expressway assets into a listed company, unlocking approximately CNY4.8 billion through securitisation.