央行“收短放长”再加码，万亿流动性注入稳市场

Core Viewpoint - The People's Bank of China (PBOC) conducted a 1 trillion yuan (approximately 140 billion USD) three-month reverse repo operation on December 5 to maintain reasonable liquidity in the banking system at year-end, effectively rolling over the same amount of maturing funds [1]. Group 1: Market Liquidity - The operation reflects a stable demand for liquidity in the banking system at the beginning of the month, with institutions preferring to retain flexibility in managing liabilities until clearer funding needs arise mid-month and month-end [6]. - The market generally anticipates the PBOC's overall support for medium to long-term liquidity in December, with an additional 400 billion yuan (approximately 56 billion USD) six-month reverse repo maturing, and a likelihood of another six-month operation being conducted [6]. - This operation is part of a strategy to address potential liquidity tightening pressures, as the government bond issuance is expected to be high, alongside a significant amount of interbank certificates maturing [6]. Group 2: Monetary Policy Strategy - The operation continues the PBOC's "short-term withdrawal, long-term injection" strategy, having net injected 650 billion yuan (approximately 91 billion USD) of medium to long-term liquidity while withdrawing 556.2 billion yuan (approximately 78 billion USD) of short-term funds through seven-day reverse repos [7]. - This strategy aims to meet the market's demand for stable medium to long-term funds while preventing fund idling and improving fund utilization efficiency, which is crucial for maintaining year-end liquidity and stabilizing market expectations [7]. - Future policy outlook suggests that the PBOC may implement a new round of reserve requirement ratio (RRR) cuts before year-end, potentially leading to a decrease in the scale of net medium-term liquidity injections [7].