CGWS(SZ:002939) Zheng Quan Shi Bao·2025-09-24 11:01Core Viewpoint - The People's Bank of China (PBOC) is continuing to implement a moderately loose monetary policy by injecting liquidity into the banking system through a series of operations, including a 600 billion yuan Medium-term Lending Facility (MLF) operation, marking the seventh consecutive month of increased MLF issuance [1][3]. Group 1: MLF Operations - On September 25, the PBOC announced a 600 billion yuan MLF operation with a one-year term, resulting in a net injection of 300 billion yuan for the month after 300 billion yuan of MLF matured [1]. - The MLF operations have transitioned to a bidding mechanism that allows institutions to prepare for liquidity needs in advance, enhancing market-based pricing capabilities [4]. - The PBOC has maintained a consistent approach to MLF operations since March, focusing on liquidity provision rather than policy adjustments [3][4]. Group 2: Market Impact and Coordination - The combined liquidity injection from MLF and reverse repos in September reached 600 billion yuan, maintaining the same level as August, indicating a stable monetary policy stance [3]. - The ongoing liquidity support is seen as beneficial for the smooth issuance of government bonds, reflecting a coordinated approach between fiscal and monetary policies [3]. - Recent increases in mid-to-long-term market interest rates due to a strong stock market have prompted the PBOC to enhance liquidity injections to stabilize market expectations [3]. Group 3: Future Expectations - Analysts anticipate that the PBOC may further utilize quantitative monetary policy tools in the fourth quarter, including MLF and reverse repos, to continue injecting liquidity into the market [4]. - There is a growing market demand for the PBOC to resume government bond trading operations, which could provide more flexible and effective liquidity support compared to monthly reverse repo operations [4].