Core Viewpoint - The People's Bank of China (PBOC) has conducted a 1.1 trillion yuan reverse repurchase operation with a three-month term, indicating a proactive approach to manage liquidity in October, which is expected to face significant seasonal cash demand due to the holiday period [1] Group 1: Monetary Policy Actions - The PBOC's operation involved a fixed amount and interest rate bidding with multiple price levels, aimed at addressing liquidity needs [1] - Following the operation, there will be a net increase of 300 billion yuan in three-month reverse repos for October, considering the 800 billion yuan of reverse repos maturing this month [1] Group 2: Economic Analysis - According to the chief economist at CITIC Securities, the seasonal increase in cash demand due to the October holidays may lead to a significant liquidity gap [1] - The report suggests that the PBOC will continue to support liquidity through various tools, including open market operations and medium-term lending facilities, to maintain stable funding rates and policy interest rate spreads [1]

Core Viewpoint - The People's Bank of China (PBOC) conducted a 1.1 trillion yuan reverse repurchase operation with a three-month term, indicating a proactive approach to manage liquidity in October, especially considering the seasonal increase in cash demand post-holidays [1] Group 1: Monetary Policy Actions - The PBOC's operation involved a fixed amount and interest rate bidding, with multiple price-level bidding, aimed at addressing liquidity needs [1] - Following the maturity of 800 billion yuan in three-month reverse repos in October, the operation results in a net increase of 300 billion yuan in three-month reverse repos for the month [1] Group 2: Economic Analysis - According to the chief economist at CITIC Securities, the seasonal rise in cash demand due to the October holidays is expected to create a significant liquidity gap [1] - The report suggests that the PBOC will continue to support liquidity through various tools, including open market operations and medium-term lending facilities, while maintaining stable funding rates and policy rate spreads [1]