China Stocks Mixed on PBOC Repo Plans

The Shanghai Composite slipped 0.3% to 4,099 on Thursday, while the Shenzhen Component advanced 1.3% to 16,251, with benchmarks delivering a mixed performance after the People’s Bank of China announced plans to introduce overnight reverse repo operations as part of its next stage of policy reform. The central bank said the new facility will be rolled out on June 29–30, marking a step toward more flexible liquidity management. The overnight tenor will complement the existing seven-day reverse repo rate of 1.4%, which remains the PBOC’s main policy benchmark. The announcement follows remarks by Governor Pan Gongsheng at the Lujiazui Forum, where he signaled plans to broaden the central bank’s use of overnight reverse repos. Financial stocks came under pressure, particularly Industrial and Commercial Bank of China (-1.1%), Agricultural Bank of China (-1.0%), China Construction Bank (-1.3%), and Bank of China (-2.0%).

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