CHINA PRESS: PBOC Makes Largest MLF Liquidity Injection Since 2021

The People’s Bank of China has increased the net medium-term lending facility (MLF) amount by CNY289 billion, the highest MLF liquidity injection for 33 months, according to 21st Century Business Herald. Zhou Guannan, chief analyst at Huachuang Fixed Income, said the move showed the central bank wanted to maintain ample liquidity as conditions become tighter. Wang Qing, chief macro analyst at Oriental Jincheng, said the PBOC will continue to increase the MLF in Q4 given demand for credit extension and special refinancing bond issuance. Authorities could cut the RRR in Q4 to optimise banking sector liquidity structure and reduce the bank's capital cost, Wang said.