The central bank will conduct 1 trillion yuan worth of reverse repurchase agreements. Institution interpretation.

Wang Qing, chief macro analyst of Orient Securities, stated that data shows that there will be 1 trillion yuan of 3-month buy-back reverse repos maturing in December. Therefore, the People's Bank of China conducted 100 billion yuan of buy-back reverse repos on December 5th, which means that the same amount of 3-month buy-back reverse repos will be conducted in the same month. This is also the second consecutive month that this policy tool has been continued in the same amount. In Wang Qing's opinion, the lack of additional continuation of 3-month buy-back reverse repos in December may be related to the term structure of financial institutions' funding needs and does not indicate a decrease in the People's Bank of China's liquidity injection efforts. In December, there are also 400 billion yuan of 6-month buy-back reverse repos maturing, and it is expected that the People's Bank of China will conduct another 6-month buy-back operation in the same month, with a higher likelihood of additional continuation.