The Central Bank has increased its support for the market for seven consecutive months, and authoritative experts explain in detail the new paradigm of the Central Bank's liquidity management.

A market authority expert stated that recently, China has made significant efforts in tool innovation, such as including the trading of government bonds in the monetary policy toolkit, creating two monetary policy tools to support the capital market, which will further enhance the effectiveness of China's liquidity management. Central banks around the world are using a variety of tools to conduct liquidity management, reflecting the implementation effects of monetary policy. Although there may be some differences in quantity and names, the overall functional classification is consistent. According to the expert, these tools can be broadly divided into four levels: first, intra-day liquidity support, usually provided free of charge, mainly to address the temporary funding needs of financial institutions during the day, ensuring the smooth operation of the payment system, with a term of intra-day or overnight. Second, daily liquidity supply, mainly through routine open market operations to control short-term interest rates, such as repurchase agreements, generally priced at levels close to the policy rate, with terms of overnight or around one week. Third, temporary liquidity supply, used to deal with sudden liquidity stress, runs, and other emergencies, typically priced at a "penalty rate" higher than the market rate level to guard against moral hazards in banking institutions, with terms ranging from weeks to months. Fourth, structural liquidity supply, primarily to meet the medium to long-term funding needs of special periods or policy incentives, with terms often ranging from months to over a year, priced close to market long-term interest rates.