To ensure ample liquidity at the end of the year and the beginning of the new year, the central bank will conduct 600 billion yuan of reverse repurchase transactions.

The central bank will continue to conduct 6-month medium-term liquidity injections through reverse repurchase agreements this month, with a net injection of 200 billion yuan, in order to continue injecting medium-term liquidity into the market to better maintain market liquidity and ensure the stable operation of the financial market at the end of the year and the beginning of the new year. "The 6-month medium-term reverse repurchase agreements have been continuously increased for four months in a row." Wang Qing, chief macroeconomic analyst at Orient Securities, said that earlier, the central bank conducted 1 trillion yuan of 3-month reverse repurchases on December 5, and continued with an equal amount. In December, the total amount of reverse repurchases for the two terms increased by 200 billion yuan, with the central bank injecting medium-term liquidity into the market continuously for 7 months through reverse repurchases. Wang Qing believes that this operation is mainly due to the fact that the scale of government bond issuance in December will be at a high level, new types of policy-based financial instruments will drive the growth of related loans, and the amount of interbank certificates of deposit maturing in December will reach 3.7 trillion yuan, which will to some extent tighten the liquidity."In order to cope with the potential liquidity tightening situation, the central bank will continue to inject liquidity into the banking system through reverse repurchase agreements, which will help with government bond issuance and guide financial institutions to increase monetary and credit lending." Wang Qing said. There are also 300 billion yuan in Medium-Term Lending Facility (MLF) that will mature in December. Dong Ximiao, chief researcher at Zhonglian Securities, expects the central bank to conduct an equal or increased amount of MLF operations around the 25th, continuing to inject medium-term liquidity into the market.