The People’s Bank of China (PBoC) injected a total of CNY 900 billion into financial institutions on October 27 through its one-year Medium-Term Lending Facility (MLF), aiming to maintain ample liquidity in the banking system. With CNY 700 billion in MLF funds maturing this month, the operation resulted in a net liquidity injection of CNY 200 billion — marking the eighth consecutive month of net MLF injections. The central bank conducted the operation using a fixed-quantity, interest-rate bidding, and multiple-price bidding method. This month’s net injection was lower than the CNY 300 billion recorded in September. At the same time, the PBoC conducted CNY 1.7 trillion in outright reverse repos in October, offsetting CNY 1.3 trillion in maturing operations and resulting in a net injection of CNY 400 billion. Overall, the central bank’s net medium-term liquidity injection for the month will reach CNY 600 billion, matching the level in September.
