CHINA PRESS: PBOC Uses 14-day Reverse Repo Operation First Time In Three Months

China’s central bank conducted CNY100 billion in 14-day reverse repo operations on Dec 18, marking the reactivation of the tool for the first time in three-months, Yicai reports. The DR001—the interbank overnight pledged repo rate for deposit-taking institutions—stabilised this week, fluctuating within a narrow range around 1.27%, after it briefly dipped below 1.3% last week. Analysts said this demonstrates a relatively loose liquidity environment, reflecting the central bank’s efforts to offset potential tightening risks through sustained liquidity injections. “As year-end approaches, the central bank customarily activates 14-day reverse repo operations, mainly because liquidity-disturbing factors such as bank performance assessments, fiscal receipts and expenditures, and increased cash withdrawals by residents tend to intensify around year-end,” said Wang Qing, chief macro analyst at Orient Credit Rating.