The central bank has restarted 14-day reverse repurchase agreements to smooth liquidity before the New Year.

As the end of the year approaches, the central bank once again took action to stabilize the funds in the financial market. On December 18th, after a gap of nearly three months, the central bank restarted 14-day reverse repurchase operations, injecting 100 billion yuan, and simultaneously conducted 88.3 billion yuan of 7-day reverse repurchase operations. Industry insiders believe that this move is aimed at meeting the funding needs at year-end, adjusting short-term fluctuations through flexible term structures, and sending a signal of flexible and precise monetary policy control. With the synergistic effect of various liquidity tools, market expectations for a reserve requirement ratio cut at the beginning of next year have also been raised.