On January 16, the People’s Bank of China hedged the maturity of Medium Term Loan Facility (MLF) through RMB 959.5 billion reverse repurchase operation on the 15th, but the capital is still under great pressure. The data shows that the weighted average quotes of DR001 and DR007, which reflect the interbank market fund prices, have remained high due to multiple factors such as tax periods, residents’ cash withdrawal needs, and local bond issuance. Industry insiders analyze that considering the liquidity gap at the beginning of the year and seasonal factors before the Spring Festival, the central bank may take measures such as reserve requirement ratio cuts in the near future to alleviate financial pressure. (Shanghai Securities News)
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