Monetary Policy Operations - The People's Bank of China conducted a 7-day reverse repurchase operation of 475.3 billion yuan at an interest rate of 1.40%, maintaining the previous rate [1] - With 159.5 billion yuan of 7-day reverse repos maturing on the same day, the net injection into the open market was 315.8 billion yuan [1] Interbank Offered Rates - The Shanghai Interbank Offered Rate (Shibor) showed mixed movements, with the overnight Shibor rising by 2.70 basis points to 1.4690%, while the 7-day Shibor fell by 1.20 basis points to 1.5300% [2][3] - The 14-day Shibor increased by 4.90 basis points to 1.6470% [2] Repo Market Activity - In the interbank pledged repo market, various rates experienced slight fluctuations, with R007 and R014 continuing to show an inverted relationship [4] - The weighted average rates for DR001 and R001 rose by 1.6 basis points and fell by 0.6 basis points, respectively, while DR007 and R007 saw declines of 2.4 basis points and 3.4 basis points [4] Funding Conditions - The funding environment on October 28 was characterized by a loose stance, with overnight transactions initially around 1.55% and gradually declining to a range of 1.45%-1.48% by the end of the day [8] - A total of 75 interbank certificates of deposit (CDs) were issued, with an actual issuance volume of 181.72 billion yuan [8] Financial Performance of Banks - China Bank reported a third-quarter revenue of 162.697 billion yuan, a year-on-year increase of 0.94%, and a net profit attributable to shareholders of 60.069 billion yuan, up 5.09% [11] - For the first three quarters, the bank achieved a revenue of 492.115 billion yuan, a 2.72% increase, and a net profit of 177.66 billion yuan, up 1.08% [11]

Group 1: Liquidity Overview - The liquidity environment is currently stable, with R007 fluctuating around 1.47% during October 20-24, 2025[1] - The net issuance of negotiable certificates of deposit (NCDs) surged to 641.1 billion yuan in October, marking the second-highest level this year[1] - The weighted issuance rate of NCDs increased to 1.65%, up 2.1 basis points from the previous week[1] Group 2: Upcoming Challenges - The liquidity will face dual pressures from the large tax period and month-end cash flow requirements from October 27-30[3] - The upcoming week will see a total of 15,672 billion yuan in maturities, including 8,672 billion yuan in reverse repos[4] - The government bond net payment is expected to be 1,337 billion yuan, a decrease from the previous week's 2,142 billion yuan[6] Group 3: Market Trends - The 1-month bill rate fell by 43 basis points to 0.60%, while the 3-month and 6-month rates also declined[5] - Major banks have net purchased 1,267 billion yuan in bills during the week of October 20-23, with a total of 3,625 billion yuan net purchased in October[5] - The issuance of NCDs with maturities of 6 months or more has increased, now accounting for 39% of total issuance, up 15.3 percentage points[20] Group 4: Central Bank Actions - The central bank announced a net MLF injection of 200 billion yuan on October 27, 2025, to alleviate liquidity pressure[3] - Cumulatively, the central bank's net injection of medium- and long-term funds in October reached 600 billion yuan[3]

Monetary Policy Operations - The People's Bank of China conducted a 236 billion yuan 7-day reverse repurchase operation at an interest rate of 1.40%, unchanged from the previous operation, resulting in a net withdrawal of 376 billion yuan due to 612 billion yuan of reverse repos maturing on the same day [1] - The Shanghai Interbank Offered Rate (Shibor) showed slight fluctuations, with the overnight Shibor remaining stable at 1.3160%, the 7-day Shibor rising by 0.50 basis points to 1.4190%, and the 14-day Shibor decreasing by 0.90 basis points to 1.4430% [1] Interbank Repo Market - In the interbank pledged repo market, most rates saw slight increases, with the R007 transaction ratio rising to 10.6%. The weighted average rates for DR001 and R001 increased by 0.0 basis points and 0.1 basis points, respectively, while DR007 and R007 both rose by 0.6 basis points [4] - The transaction volumes for DR001 and R001 increased by 188 billion yuan and 102.8 billion yuan, respectively, while DR007 saw a decrease of 139 million yuan, and R007's transaction volume increased by 247.2 billion yuan [4] Funding Conditions - The overall funding environment is described as balanced and slightly loose, with major banks lending well. The overnight pledged repo rates were reported at 1.28% to 1.43%, while 7-day pledged repo rates were around 1.45% to 1.47% [9] - As of 5:30 PM on October 16, there were 110 interbank certificates of deposit issued, with a total issuance amount of 152.78 billion yuan [9] Certificate of Deposit Market - In the primary market for certificates of deposit, issuers are actively raising prices, leading to a lively trading atmosphere. The secondary market showed moderate trading sentiment, with overall yields slightly increasing [10] - The 1-month national bank stock ended at approximately 1.51%, while the 3-month and 6-month national bank stocks saw slight declines and increases, respectively, with the 1-year national bank stock yielding between 1.6675% and 1.6725% [10] Banking Sector Developments - Recent leadership changes were reported in several branches of the Bank of China, including the appointment of new branch heads in Henan, Shanghai, and Jiangxi provinces [12] - Jilin Bank's registered capital increased from approximately 13.14 billion yuan to about 13.81 billion yuan, alongside changes in several senior management positions [13]

Group 1 - The report indicates that liquidity is expected to remain comfortable in the upcoming week, with a stable transition across the quarter despite some fluctuations observed from September 23 to September 25, where the central bank's operations were relatively cautious [1][12] - On September 26, the central bank injected 600 billion yuan through a 14-day reverse repurchase agreement, which revitalized market sentiment and helped overnight funds recover to below 1.35%, supported by increased fiscal spending at the quarter's end [1][12] - Historical trends suggest that in October, funding rates typically operate around a central level, with early month conditions being relatively loose due to the easing of regulatory assessments and the influx of fiscal spending [18] Group 2 - The upcoming week will see nearly 1.7 trillion yuan in public market maturities, including 1.021 trillion yuan in 7-day reverse repos, 500 billion yuan in buyout repos, and 150 billion yuan in treasury cash deposits [3][24] - Government bonds are set to issue over 200 billion yuan, with planned issuances of 221 billion yuan in national bonds and 213 billion yuan in local bonds, while maturing national bonds total 2.594 trillion yuan and local bonds 946 billion yuan [4][35] - The willingness of major banks to lend has shown signs of recovery, with funding rates declining; for instance, DR001 decreased by 6.81 basis points to 1.32% as of October 10 [5][18]

Core Viewpoint - The People's Bank of China conducted a net injection of 296.5 billion yuan into the market through reverse repos and medium-term lending facilities on September 25, 2023, amid maturing financial instruments [1]. Group 1: Market Operations - The central bank executed a 7-day reverse repo operation of 483.5 billion yuan and a medium-term lending facility (MLF) operation of 600 billion yuan, with 4.87 billion yuan in reverse repos and 300 billion yuan in MLF maturing on the same day [1]. - The overall net injection into the market was 296.5 billion yuan after accounting for maturing instruments [1]. Group 2: Interbank Rates - The overnight Shanghai Interbank Offered Rate (Shibor) rose by 3.80 basis points to 1.4720%, while the 7-day and 14-day Shibor rates slightly decreased [2][3]. - The weighted average rates for various repo instruments increased, with DR001 rising by 3.8 basis points to 1.4749%, DR007 up by 1.5 basis points to 1.6017%, and DR014 increasing by 2.2 basis points to 1.6718% [3][4]. Group 3: Funding Conditions - The funding conditions in the interbank market were balanced in the morning and slightly eased in the afternoon, with overnight rates for non-bank institutions trading between 1.50% and 1.53% [6]. - A total of 55 interbank certificates of deposit were issued on September 25, with an actual issuance volume of 39.91 billion yuan [6]. Group 4: Bond Market Activity - The primary market for certificates of deposit showed a recovery in trading sentiment, while the secondary market experienced active trading with yields fluctuating slightly compared to the previous day [7][8].

Group 1: Liquidity and Market Behavior - The liquidity situation is tightening, with an increase in funding prices. R001 rose to 1.50% from 1.40%, and DR001 increased to 1.46% from 1.36%. R007 reached 1.52% from 1.47%, while DR007 rose to 1.51% from 1.46% [1] - The central bank has increased its fund injection, with a net injection of 562.3 billion yuan through reverse repos this week, alongside a 600 billion yuan long-term reverse repo operation [1] - The average daily trading volume of pledged repos decreased slightly to 7.16 trillion yuan from 7.49 trillion yuan, indicating a slight decline in interbank leverage [3] Group 2: Certificate of Deposit and Treasury Yield - The yield on certificates of deposit (CDs) has slightly increased, with the 3-month yield rising by 1.50 basis points to 1.58%, the 6-month yield up by 0.61 basis points to 1.64%, and the 1-year yield increasing by 0.50 basis points to 1.68% [2] - The net financing from CDs rebounded to 134.4 billion yuan from a previous -468 billion yuan, with the average issuance term extending to 6.4 months from 5.9 months [2] - The yield curve for government bonds has steepened slightly, with the 1-year treasury yield down by 1 basis point to 1.39%, while the 10-year and 30-year yields increased by 1.19 basis points to 1.88% and 1.56 basis points to 2.20%, respectively [2] Group 3: Government Bond Issuance - The net issuance of government bonds is expected to decline significantly next week, with a forecasted net issuance of -52.2 billion yuan, compared to a net issuance of 2.674 trillion yuan this week [3] - This week, the net issuance of treasury bonds was 287.1 billion yuan, while local government bonds had a net issuance of 30.9 billion yuan [3] - The total net payment for government bonds this week was 429.6 billion yuan, indicating a substantial outflow [3]

Core Viewpoint - The bond market has experienced a correction, with product net values showing differentiation, particularly favoring rights-inclusive fixed income products over traditional bond funds [2][3][11]. Summary by Sections Fixed Income Product Returns Review - In the past month, the bond market corrected while the stock market rose. The performance of products showed differentiation, with rights-inclusive fixed income products yielding 0.54% (down from 0.84%), high-grade interbank certificates of deposit yielding 0.13% (down from 0.14%), and cash management products yielding 0.10% (unchanged). Short-term bond funds yielded 0.05% (up from 0.03%), while medium to long-term bond funds yielded -0.07% (improved from -0.25%) [3][9][10]. Bond Market Review - The bond market saw a correction with overall sentiment remaining weak. Short-term bonds outperformed long-term bonds, and the yield curve continued to steepen. Key factors influencing the bond market included a gradual increase in market risk appetite, new regulations on public fund fees, and a weak economic backdrop [11][12][19]. Industry Events Tracking - On September 5, the China Securities Regulatory Commission solicited public opinions on the "Publicly Raised Securities Investment Fund Sales Fee Management Regulations (Draft for Comments)," which aims to lower costs for investors and promote long-term investment [35]. Outlook - **Short-term (1 month)**: The interbank certificate of deposit rates are expected to remain stable, with continued pressure for corrections in the market. Long-term bonds are anticipated to underperform compared to short-term bonds [11]. - **Medium-term (3-6 months)**: Economic recovery and inflation trends are under observation, with the potential for a slight rise in interest rates. If the central bank initiates a new round of interest rate cuts, it may alleviate correction pressures in the bond market [11][30]. Fixed Income Product Strategy - Investors are advised to prioritize short to medium-term products, with caution advised for long-term investments. The strategy includes maintaining cash positions and considering stable low-volatility financial products, short-term bond funds, or wealth management products [36][39]. Equity Market Overview - The A-share market has shown upward momentum, with the Shanghai Composite Index rising 4.0%, the CSI 300 Index up 7.8%, and the ChiNext Index increasing by 21% over the past month [28]. Asset Class Trends - The bond market is expected to face increased volatility, with a potential top in interest rate increases. The supply of government bonds is projected to decrease, while demand remains supported, leading to a neutral impact on the bond market [30][31]. Investment Recommendations - For conservative investors, maintaining pure bond products is recommended, with a cautious approach to extending duration. For those with higher risk tolerance, mid to long-term bond funds may be considered as interest rates rise above 1.8% [39][40]. Conclusion - The bond market is currently experiencing a phase of correction, with varying performance across different products. Investors are encouraged to adopt a strategic approach based on their risk tolerance and market conditions [36][39].

1. Report Industry Investment Rating No information provided in the content. 2. Core View of the Report The report tracks the liquidity and institutional behavior in the fixed - income market. It shows that the funds remain loose, and the leverage ratio has slightly increased. The overnight fund prices have declined, while the seven - day fund prices are volatile. The central bank has injected funds to support the cross - month liquidity. The yields of certificates of deposit (CDs) have different trends, and the net financing of CDs continues to be negative with a shortened average issuance term. The net issuance of government bonds will increase next week, and the net payment will decrease. The inter - bank leverage ratio has slightly risen this week [1][2][3]. 3. Summary According to Relevant Catalogs 3.1 Funds - Overnight fund prices have declined, and seven - day fund prices are volatile. R001 closed at 1.42% (previous value: 1.45%), DR001 at 1.33% (previous value: 1.41%), R007 at 1.52% (previous value: 1.48%), and DR007 at 1.52% (previous value: 1.47%). The spread between DR007 and 7 - day OMO was 11.58bp. The 6M national and joint - stock bank bill transfer and discount rate closed at 0.80% (previous value: 0.59%) [1]. - The central bank injected funds to support the cross - month liquidity. This week, the central bank's reverse repurchase injection was 227.31 billion yuan, with 207.7 billion yuan maturing, resulting in a net injection of 19.61 billion yuan. MLF injection was 60 billion yuan, with 30 billion yuan maturing, resulting in a net injection of 30 billion yuan [1]. 3.2 Certificates of Deposit - The yields of CDs have different trends. The 3M yield decreased by 1.00bp to 1.54%, the 6M yield increased by 0.04bp to 1.61%, and the 1Y yield decreased by 0.50bp to 1.66%. The spread between the 1 - year CD and R007 narrowed by 3.82bp to 14.29bp [2]. - The net financing of CDs continues to be negative, and the average issuance term has shortened. This week, the net financing of CDs was - 19.47 billion yuan (previous value: - 24.55 billion yuan). The 1 - year CD issuance rates of state - owned banks, joint - stock banks, city commercial banks, and rural commercial banks were 1.67%, 1.67%, 1.71%, and 1.76% respectively, with changes of + 0bp, - 0.80bp, - 3.68bp, and + 4.40bp compared to the previous values. The weighted average issuance term this week was 6.0M (previous value: 6.5M), with 3M CDs issued at 10.5 billion yuan, 6M at 19.87 billion yuan, and 1Y at 7.17 billion yuan [2]. 3.3 Institutional Behavior - Next week, the net issuance of government bonds will increase, and the net payment will decrease. This week, the net issuance of national bonds was - 23.71 billion yuan, and that of local bonds was 24.36 billion yuan, with a total net issuance of 0.65 billion yuan and a total net payment of 19.93 billion yuan. Next week, the expected net issuance of national bonds is 11.98 billion yuan, and that of local bonds is 3.67 billion yuan, with a total net issuance of 15.65 billion yuan and a total net payment of - 0.79 billion yuan [3]. - The inter - bank leverage ratio has slightly risen this week. The average daily trading volume of pledged repurchase was 7.07 trillion yuan (previous value: 7.13 trillion yuan), and the average daily inter - bank market leverage ratio was 108.78% (previous value: 108.42%) [3].

Group 1: Open Market Operations - The central bank announced a 7-day reverse repurchase operation on August 20, with a fixed rate and quantity tendering of 616 billion yuan at an interest rate of 1.40%, with the same amount being the bid and awarded [1] - On the same day, 118.5 billion yuan of reverse repos matured, resulting in a net injection of 497.5 billion yuan [1] Group 2: Funding Conditions - As monthly tax payments recede, the central bank continues to inject large amounts of liquidity through reverse repos, leading to a tightening trend in the interbank funding market in the morning, but improving in the afternoon with liquidity becoming more balanced [3] - The CNEX funding sentiment index peaked at 67 before falling back to 48 by the end of the day [3] - The weighted rate of DR001 rose slightly to around 1.47%, while DR007 increased by over 2 basis points to approximately 1.57% [3] Group 3: Interbank Certificates of Deposit - The latest transaction for one-year interbank certificates of deposit among major banks is at 1.67%, showing little change from the previous day [8] Group 4: Bond Market Overview - Most major interest rate bond yields in the interbank market have risen [10] - The closing prices for government bond futures showed a decline, with the 30-year main contract down by 0.35%, the 10-year down by 0.18%, the 5-year down by 0.10%, and the 2-year remaining flat [14] Group 5: Government and Social Capital Cooperation - The State Council forwarded the Ministry of Finance's guidelines on standardizing the construction and operation of existing projects under government and social capital cooperation, emphasizing the need for prioritization based on economic and financial conditions [15] - Local governments are encouraged to expedite near-completion projects and optimize construction standards to reduce unnecessary costs [15] Group 6: U.S. Treasury and Stablecoins - U.S. Treasury Secretary Scott Behnke indicated that stablecoins may become a source of demand for U.S. government bonds, with discussions involving major stablecoin issuers about future short-term note issuance plans [16] Group 7: Bond Issuance Plans - Jiangsu Province plans to issue 57.988 billion yuan in new government special bonds on August 27 and 32.747 billion yuan in September, all for new special bonds [18] - Guizhou Province plans to issue 763.3745 billion yuan in local bonds in September [18] Group 8: Non-standard Asset Risks - Recent non-standard asset risks in urban investment include various trust plans and debt plans, with multiple instances of default and risk warnings noted [19]

Group 1 - The People's Bank of China conducted a 7-day reverse repurchase operation of 616 billion yuan at an interest rate of 1.40%, maintaining the previous rate, resulting in a net injection of 497.5 billion yuan after 118.5 billion yuan of reverse repos matured on the same day [1] - The Shanghai Interbank Offered Rate (Shibor) showed a mixed trend, with the overnight Shibor rising by 0.90 basis points to 1.4730%, the 7-day Shibor increasing by 1.70 basis points to 1.5340%, and the 14-day Shibor declining by 0.30 basis points to 1.5960% [2][3] - In the interbank pledged repo market, various products continued to see slight increases, particularly the 7-day products, with weighted average rates for DR001 and R001 rising by 0.2 basis points and 1.0 basis points, respectively [4] Group 2 - The money market showed a tightening trend in the morning of August 20, with rates for overnight and 7-day deposits fluctuating between 1.60%-1.65% and 1.56%-1.58%, respectively, before easing in the afternoon [8] - As of 5:30 PM on August 20, there were 84 interbank certificates of deposit issued, with a total issuance amount of 70.46 billion yuan [8] - The primary market for certificates of deposit remained weak, with trading sentiment affected by fluctuations in the current bond market and upcoming maturity dates [9]