Group 1 - The People's Bank of China conducted a 177.1 billion yuan 7-day reverse repurchase operation at an interest rate of 1.40%, maintaining the previous rate, resulting in a net injection of 88.8 billion yuan after 88.3 billion yuan of reverse repos matured on the same day [1] - The Shanghai Interbank Offered Rate (Shibor) showed slight fluctuations, with the 7-day Shibor rising by 1.50 basis points to 1.4000%, while the overnight Shibor decreased by 0.50 basis points to 1.2620% [1][2] - In the interbank pledged repo market, the DR007 rate increased by over 10 basis points, while the R014 rate continued to rise in both volume and price [4] Group 2 - The overall funding situation in the market was balanced, with major banks lending out funds at rates between 1.50% and 1.52% for overnight deposits, and demand remained strong for cross-month rates [10] - On December 25, 72 interbank certificates of deposit were issued, totaling 71.77 billion yuan, with varying trading sentiments across different maturities [11] - The financial regulatory authority emphasized the importance of managing partnerships and has issued over 1,100 risk warnings and public statements to guide public awareness [13]

Report Industry Investment Rating - Not provided in the report Core View - The market generally focuses on the changes in the description of monetary policy in the Central Economic Work Conference. The meeting minutes of the People's Bank of China Party Committee's study and implementation of the Central Economic Work Conference spirit are equally important, reflecting the central bank's specific thinking on monetary policy in 2026 [1]. Summary by Directory 1. From the Meeting Minutes of the Central Bank Party Committee's Study to See Subtle Changes in Monetary Policy in 2026 - The Central Economic Work Conference is an important institutional arrangement for the Party to govern the country. After the conference, various systems and ministries will convey, study, and deploy specific work for 2026. The People's Bank of China Party Committee will also study and clarify implementation measures [1][12]. - Comparing the 2025 and 2024 meeting minutes, four main changes were found: adding "grasp the intensity, rhythm, and timing of policy implementation", which may indicate a more moderate loose - monetary - policy; changing the description of social comprehensive financing costs from "stable and gradually decreasing" in 2024 to "operating at a low level" in 2025; making the description of the RMB exchange rate more concise, showing confidence in the recent appreciation trend of the RMB; and continuing to emphasize "coordination with fiscal policy" [2][12][13]. 2. Narrow - Sense Liquidity 2.1 Central Bank Operations - Short - term liquidity: In the past week (12/8 - 12/12), the central bank's net reverse - repurchase injection was 4.7 billion yuan. As of December 12, the central bank's reverse - repurchase balance was 668.5 billion yuan, at a relatively low level [15]. - Medium - term liquidity: In December, the due amount of the central bank's outright reverse - repurchase was 140 billion yuan (including 100 billion yuan for the 3 - month and 40 billion yuan for the 6 - month). On December 5, the central bank renewed the 3 - month outright reverse - repurchase of 100 billion yuan. On December 15, it will renew the 6 - month outright reverse - repurchase of 60 billion yuan, with a net injection of 20 billion yuan [16]. 2.2 Institutional Fund Inflow and Outflow: Large Banks' Net Outflow Reaches a New High - Fund supply: On December 12, large banks' net fund outflow was 4.2 trillion yuan (flow concept), up about 100.2 billion yuan from December 5. The net outflow balance was 4.8 trillion yuan, up about 130.2 billion yuan. The net outflow balance of money funds was 1.1 trillion yuan, down about 117.7 billion yuan from December 5. The net outflow of joint - stock banks was 28.96 billion yuan, up about 285.5 billion yuan from December 5 [18]. - Fund demand: On December 12, the balance of repurchase - to - be - bought bonds in the inter - bank market was about 12.4 trillion yuan, up 646.7 billion yuan from December 5. The leverage ratio of the whole market was 107%, up 0.40 pct from December 5, and the leverage ratio of non - legal person products was 112%, up 1.17 pct from December 5 [29]. 2.3 Repurchase Market Transaction Situation: Low Liquidity Friction - Fund volume and price: In the past week, the inter - bank pledged repurchase market had a large volume and stable prices. The median daily trading volume was about 8.1 trillion yuan, up 203.9 billion yuan from December 1 - 5. The median of R001 was 1.35%, down 1bp from last week. The median spread of R001 - DR001 was 7.0bp, up 0.6bp from last week, and the median spread of GC001 - R001 was 7.2bp, up 0.8bp from last week [32]. - Fund sentiment index: The overall fund situation was loose, and the financing difficulty was low. The sentiment index was mostly below 50 [36]. 2.4 Interest Rate Swaps: Basically Flat - The 1 - year FR007 IRS interest rate was basically the same as last week. This week, the median of the 1 - year FR007 IRS was 1.54%, at the 11% quantile since 2020 [38]. 3. Government Bonds: The Net Payment Pressure of Government Bonds Will Decrease in the Next Week 3.1 Next Week's Net Payment of Government Bonds - In the past week, the net payment of government bonds was 14.8 billion yuan, with a relatively small pressure. Among them, the net repayment of treasury bonds was 69.7 billion yuan, and the net payment of local bonds was 84.5 billion yuan. In the next week, the government bonds are expected to have a net repayment of 83.9 billion yuan, including a net repayment of 119.3 billion yuan for treasury bonds and a net payment of 35.3 billion yuan for local bonds. The net repayment is highly concentrated on Monday [39]. 3.2 Current Issuance Progress of Government Bonds - As of December 12, the net financing progress of treasury bonds was 96.7%, up 0.5% in the past week, with about 221 billion yuan of remaining net financing space in 2025. Local bonds have basically completed issuance [43]. 4. Inter - Bank Certificates of Deposit: Yields Fluctuated Slightly Higher 4.1 Absolute Yields - On December 12, the SHIBOR overnight, 7 - day, 1M, 3M, 6M, 9M, and 1Y quotes were 1.28%, 1.45%, 1.53%, 1.59%, 1.62%, 1.64%, and 1.65% respectively. The yields of 1M, 3M, 6M, 9M, and 1Y inter - bank certificates of deposit of AAA - rated commercial banks were 1.62%, 1.62%, 1.64%, 1.65%, and 1.66% respectively. Except for the 1M term, which increased by 4bp compared with December 5, the quotes of other terms remained unchanged [46]. 4.2 Issuance and Stock Situation - In the past week (December 8 - 12), the total issuance of inter - bank certificates of deposit was 941.78 billion yuan. In terms of issuance terms, the proportions of 1M, 3M, 6M, 9M, and 1Y were 9%, 27%, 43%, 6%, and 15% respectively. Among them, the proportion of 3M increased by 15 pcts, while those of 1M, 6M, 9M, and 1Y decreased by 4 pcts, 1 pct, 2 pcts, and 7 pcts respectively [51]. 4.3 Relative Valuation - On December 12, the spread between the 1 - year AAA - rated inter - bank certificate of deposit yield and R007 was 15bp, at the 34% quantile since 2020. The spread between the 10 - year treasury bond yield and the 1 - year AAA - rated inter - bank certificate of deposit was 18bp, at the 40% quantile since 2020 [54].

Group 1 - The People's Bank of China conducted a 122.3 billion yuan 7-day reverse repurchase operation on December 8, maintaining the operation rate at 1.40%, resulting in a net injection of 14.7 billion yuan after 107.6 billion yuan of reverse repos matured on the same day [1] - The Shanghai Interbank Offered Rate (Shibor) for short-term maturities saw a slight increase, with overnight Shibor rising by 0.10 basis points to 1.3020%, 7-day Shibor increasing by 1.00 basis points to 1.4260%, and 14-day Shibor up by 0.90 basis points to 1.5170% [1][2] Group 2 - In the interbank pledged repo market, most rates experienced slight increases, with DR001 and R001 weighted average rates rising by 0.2 basis points and remaining stable at 1.3022% and 1.3718%, respectively. Transaction volumes decreased by 149.6 billion yuan and 47.7 billion yuan [4] - The weighted average rates for DR007 and R007 increased by 0.8 basis points and decreased by 0.2 basis points, settling at 1.4459% and 1.494%, with transaction volumes increasing by 10.2 billion yuan and 39.2 billion yuan [4] Group 3 - The funding environment on December 8 was balanced, with overnight transactions around 1.48% and 7-day transactions in the range of 1.49%-1.50%. Cross-year funding transactions were noted at around 1.62% for pledged rates and 1.67%-1.68% for credit transactions [6] - By the end of the day, the overnight funding transaction rates had slightly decreased to around 1.40% [6]

Group 1 - The People's Bank of China conducted a 356.4 billion yuan 7-day reverse repurchase operation at an interest rate of 1.40%, maintaining the previous rate, resulting in a net injection of 56.4 billion yuan after 300 billion yuan of reverse repos matured on the same day [1] - The Shanghai Interbank Offered Rate (Shibor) showed slight fluctuations, with the overnight Shibor decreasing by 0.20 basis points to 1.3140%, and the 7-day Shibor decreasing by 2.80 basis points to 1.4250% [1][2] - In the interbank pledged repo market, short-term funding prices fluctuated within 3 basis points, with R007 transaction volume exceeding 15%. The weighted average rates for DR001 and R001 decreased by 0.1 basis points and increased by 0.3 basis points, respectively [4] Group 2 - The overall funding situation remained balanced and slightly loose, with major banks providing sufficient funding supply. Overnight repo rates and certificate of deposit prices opened around 1.45%, with 7-day repo rates declining from 1.52% to around 1.50%-1.51% [9] - In the interbank certificate of deposit market, trading sentiment was generally weak, with the issuance of 1-month and 3-month certificates being the only active ones. The yields for 3-month and 6-month certificates increased slightly, while 1-year rates remained stable [10] - On November 27, the head of the National Financial Supervision Administration met with the Governor of the Central Bank of Azerbaijan to discuss macroeconomic financial conditions and strengthen bilateral financial regulatory cooperation [12]

Overview - The liquidity environment has been volatile due to tax periods, government bond payments, and new listings on the Beijing Stock Exchange, leading to a rise in funding rates at the beginning of the week [1] - The central bank's continued liquidity injections and the nearing end of tax payments have contributed to a decline in funding rates by the end of the week [1] Funding Market - From November 24-28, the funding market is expected to remain turbulent as it enters a cross-month week, with significant repayment pressures anticipated [2] - The R001 and R007 rates are projected to experience upward pressure, with potential peaks around 1.60% during the cross-month period [2] Open Market Operations - A total of 25,760 billion yuan will mature in the central bank's open market from November 24-28, with 16,760 billion yuan in reverse repos and 9,000 billion yuan in MLF [3] - The central bank plans to conduct regular MLF operations and issue treasury deposits to alleviate some of the maturing pressure [3] Bill Market - The weighted issuance rate for interbank certificates of deposit rose to 1.64%, reflecting an increase of 0.6 basis points from the previous week [4] - Major banks have shifted to net selling, with a net sell of 23.5 billion yuan during the week of November 17-20 [4] Government Bonds - The net payment for government bonds from November 24-28 is expected to be 2,337 billion yuan, a decrease from the previous week's 3,629 billion yuan [5] - The increase in maturing treasury bonds has contributed to the reduction in net payment [5] Negotiable Certificates of Deposit - The issuance rate for negotiable certificates of deposit has further increased, while the maturity pressure has decreased to 7,522 billion yuan for the week of November 24-28 [6] - This is a decline from the previous week's maturity pressure of 9,209 billion yuan [6]

Report Industry Investment Rating No relevant content provided. Core View of the Report - The overall funds are stable with slight price fluctuations. Due to the continuous support from the central bank, the funds prices decreased slightly this week. The bond market lacks a trading main line, and bond yields fluctuated within a narrow range. Certificate of deposit (CD) yields were stable, with significant net repayment and a slight increase in the average issuance term. Next week, the net payment of government bonds is expected to decline, and the inter - bank leverage ratio decreased slightly this week [1][2][3] Summary by Directory 1. Funds - The overall funds were stable, with slight price fluctuations. R001 closed at 1.39% (previous value: 1.43%), DR001 at 1.32% (previous value: 1.37%), R007 at 1.50% (previous value: 1.49%), and DR007 at 1.44% (previous value: 1.47%). The spread between DR007 and 7 - day OMO was 4.08bp. The 6M national and state - owned bank draft transfer discount rate closed at 0.77% (previous value: 0.63%) [1] - OMO net injection was stable, and the treasury cash fixed - term deposit will be renewed with an increased amount. This week, the central bank conducted 1676 billion yuan of reverse repurchase operations, with 1122 billion yuan of reverse repurchases maturing, resulting in a net reverse repurchase injection of 554 billion yuan, similar to last week's net injection of 626.2 billion yuan. On November 19th, the central bank announced that on November 24th, it will conduct 120 billion yuan of 1 - month and 80 billion yuan of 21 - day treasury cash fixed - term deposits, renewing 80 billion yuan with an increased amount [1] 2. Inter - bank Certificates of Deposit - CD yields were stable. The 3M yield decreased by 0.15bp to 1.57%, the 6M yield remained flat at 1.61%, and the 1Y yield remained flat at 1.64%. The spread between the 1 - year CD and R007 narrowed by 0.07bp to 13.98bp [2] - There was significant net repayment of CDs, and the average issuance term increased slightly. This week, the net financing of CDs was - 373.2 billion yuan (previous value: - 41.6 billion yuan). The issuance rates of 1 - year CDs for state - owned banks, joint - stock banks, city commercial banks, and rural commercial banks were 1.65%, 1.64%, 1.76%, and 1.81% respectively. In terms of the issuance structure, the weighted average issuance term this week was 8.2 months (previous value: 7.7 months), with 17.05 billion yuan of 3M CDs issued, 176.83 billion yuan of 6M CDs issued, and 207.77 billion yuan of 1Y CDs issued [2] 3. Institutional Behavior - Next week, the net payment of government bonds is expected to decline. This week, the net issuance of treasury bonds was 101.6 billion yuan, and the net issuance of local bonds was 126.3 billion yuan, with a total net issuance of government bonds of 228 billion yuan and a total net payment of 400.7 billion yuan. Next week, the expected net issuance of treasury bonds is - 56.1 billion yuan, the net issuance of local bonds is 326.3 billion yuan, the net financing of government bonds is 270.2 billion yuan, and the total net payment is 244 billion yuan [3] - The inter - bank leverage ratio decreased slightly this week. The average daily volume of pledged repurchase transactions was 7.29 trillion yuan (previous value: 7.44 trillion yuan), and the average daily inter - bank market leverage ratio was 106.56% (previous value: 107.32%) [3]

Group 1: Open Market Operations - The central bank announced a 300 billion yuan 7-day reverse repurchase operation on November 20, with a fixed interest rate of 1.40% and a total bid amount of 300 billion yuan, resulting in a net injection of 110 billion yuan for the day after accounting for 190 billion yuan in reverse repos maturing [1] Group 2: Funding Conditions - The interbank market saw a loosening of funding conditions, with major term repurchase rates declining. The overnight repurchase rate for deposit-taking institutions fell over 5 basis points to around 1.36%, while the overnight quotes on the anonymous X-repo system dropped significantly to 1.35% [3] - There is abundant overnight funding supply, with non-bank institutions borrowing overnight funds at around 1.50%. The end of tax period impacts has led to a recovery in funding conditions, with expectations for further declines in short-term rates [3] Group 3: Interbank Certificates of Deposit - The latest transaction for one-year interbank certificates of deposit among major banks is at 1.64%, showing a slight increase from the previous day [7] Group 4: Government Bond Futures - The closing prices for government bond futures showed a decline in the 30-year main contract by 0.21%, while the 10-year and 5-year main contracts increased by 0.06% each, and the 2-year contract remained unchanged [11] Group 5: LPR and Regulatory Developments - The November LPR remained stable at 3% for the one-year rate and 3.5% for the five-year and above categories. The China Securities Regulatory Commission emphasized the need for stronger institutional frameworks and risk prevention measures during a recent meeting [12] Group 6: Global Macro Developments - Japan plans to introduce a new spending plan amounting to 17.7 trillion yen, necessitating the issuance of more bonds to raise funds. The Japanese Finance Minister highlighted the challenges of balancing inflation, bond yields, and a weak yen [14] Group 7: Bond Market Events - The Export-Import Bank plans to auction up to 2 billion yuan of 3-year floating rate bonds on November 21. The bond market's "technology board" remains active, with a cumulative issuance scale of nearly 1.5 trillion yuan this year [16]

Report Industry Investment Rating No information provided. Core Viewpoints - The central bank's actions, including increased open - market operations and the resumption of treasury bond transactions, have contributed to a stable and slightly fluctuating capital market. Treasury bond yields have declined, and certificate of deposit yields have also decreased, while the bank - to - bank leverage ratio has slightly dropped [1][2][3]. Summary by Related Catalogs 1. Capital Market - **Funds are stable with slight fluctuations**: This week, R001 closed at 1.41% (previous value 1.38%), DR001 at 1.32% (same as the previous value), R007 at 1.49% (previous value 1.46%), and DR007 at 1.46% (previous value 1.41%). The spread between DR007 and the 7 - day OMO was 5.51bp. The 6M national - share bank bill transfer and discount rate closed at 0.20% (previous value 0.66%) [1]. - **Central bank increases open - market operations**: Facing tax period and end - of - month pressures, the central bank conducted 20680 billion yuan in reverse repurchase operations this week, with 8672 billion yuan in reverse repurchase maturities, resulting in a net reverse repurchase injection of 12008 billion yuan. Additionally, 9000 billion yuan in MLF operations were carried out, with a net injection of 2000 billion yuan, marking eight consecutive months of increased roll - overs [1]. - **Treasury bond yields decline**: On October 27, the central bank announced the resumption of open - market treasury bond transactions. This week, the 1 - year treasury bond yield dropped 8.90bp to 1.38%, the 10 - year yield fell 5.32bp to 1.80%, and the 30 - year yield decreased 6.95bp to 2.14% [1]. 2. Inter - bank Certificates of Deposit - **Yields decline**: This week, the 3M yield dropped 3.50bp to 1.56%, the 6M yield fell 4.78bp to 1.60%, and the 1Y yield decreased 4.75bp to 1.63%. The spread between the 1 - year certificate of deposit and R007 narrowed 7.49bp to 13.52bp [2]. - **Net financing slightly decreases and average issuance term shortens**: This week, the net financing of certificates of deposit was 1706 billion yuan (previous value 3454 billion yuan). The 1 - year issuance rates of state - owned banks, joint - stock banks, city commercial banks, and rural commercial banks were 1.63%, 1.64%, 1.75%, and 1.68% respectively. The weighted average issuance term was 6.9M (previous value 7.1M), with 1390 billion yuan in 3M certificates of deposit issued, 2316.5 billion yuan in 6M, and 1927.3 billion yuan in 1Y [2]. - **Next - week government bond net issuance slightly decreases and net payment turns negative**: This week, the net issuance of treasury bonds was 0 billion yuan, and local bonds had a net issuance of 1757 billion yuan, with a total government bond net issuance of 1757 billion yuan and a total net payment of 4409 billion yuan. Next week, the expected net issuance of treasury bonds is 1504 billion yuan, local bonds - 336 billion yuan, government bond net financing 1168 billion yuan, and total net payment - 599 billion yuan [2]. 3. Institutional Behavior - **Bank - to - bank leverage ratio slightly decreases**: This week, the average daily volume of pledged repurchase transactions was 6.70 trillion yuan (previous value 7.83 trillion yuan), and the average daily bank - to - bank market leverage ratio was 107.66% (previous value 109.19%) [3].

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]