Core Insights - In November, both offshore (CNH) and onshore (CNY) RMB appreciated against the USD, with the average daily price difference (absolute value of CNY-CNH) decreasing by 4 basis points to 48 basis points [1][3] - The CFETS RMB exchange rate index and the indices referencing the BIS and SDR currency baskets increased by 0.32%, 0.58%, and 0.22% respectively compared to the end of the previous month [1][3] - The issuance of offshore RMB bonds increased significantly, with 123 bonds issued totaling 2146.27 billion RMB, a rise of 192.28% from the previous month [5] Offshore RMB Foreign Exchange Market - As of November 28, the CNH/USD exchange rate closed at 7.0713, appreciating by 0.72% from the end of the previous month, while the CNY/USD exchange rate closed at 7.0794, appreciating by 0.48% [3] - The average daily price difference between CNY and CNH was recorded at 48 basis points, a decrease of 4 basis points from the previous month [3] Offshore RMB Bond Market - The offshore RMB bond market saw an increase in issuance, with 123 bonds issued in November, up by 46 from the previous month, and the total issuance amount reaching 2146.27 billion RMB [5] Offshore RMB Money Market - By the end of November, the CNH HIBOR rates for overnight, 7-day, 3-month, and 1-year periods were 1.0415%, 1.5806%, 1.7921%, and 1.9554% respectively, with the overnight rate decreasing by 20 basis points [6] - The average interest rate differentials between offshore and onshore borrowing rates showed mixed trends, with some periods experiencing slight decreases and others increases [6] Offshore RMB Derivatives Market - The 1-year CNH swap points were recorded at -1351 basis points, an increase of 98 basis points from the previous month, while the CNY 1-year swap points decreased by 9 basis points to -1296 basis points [4] - The trading volume for USD/CNH futures contracts on the Hong Kong Stock Exchange increased by 9.3% to 1.899 million contracts, while the trading volume for options contracts decreased significantly by 82.6% [4] Dynamics of Foreign Institutions in Domestic Interbank Market - As of the end of November, the total number of foreign institutions participating in the domestic interbank foreign exchange market reached 242, an increase of 3 from the previous month [7] - The total transaction volume of foreign institutions in the domestic interbank foreign exchange market was 25277.30 billion RMB, reflecting a decrease of 8.9% [8]

Core Points - The People's Bank of China (PBOC) conducted a 7-day reverse repurchase operation of 212.8 billion yuan at an interest rate of 1.40%, maintaining the previous rate, resulting in a net injection of 71.1 billion yuan after 141.7 billion yuan matured on the same day [1] - For the week, the PBOC performed a total of 1,122 billion yuan in reverse repos, with 495.8 billion yuan maturing, leading to a total net injection of 626.2 billion yuan [1] - The overnight Shanghai Interbank Offered Rate (Shibor) rose by 4.80 basis points to 1.3630%, while the 7-day Shibor decreased by 0.60 basis points to 1.4680% [1][2] - The weighted average rates for overnight and 7-day repurchase agreements increased by 5.3 basis points and 4.1 basis points, respectively, while the rates for 7-day and 14-day agreements decreased slightly [4] Market Overview - The overall funding situation in the interbank market was balanced, with overnight transactions occurring in the range of 1.45% to 1.50% and 7-day transactions in the range of 1.48% to 1.50% [10] - On November 14, 68 interbank certificates of deposit were issued, totaling 98.76 billion yuan, with varying demand across different maturities [11] - The PBOC announced an upcoming fixed-quantity, interest-rate tender for 800 billion yuan in reverse repos on November 17, 2025, with a term of 6 months [13]

Group 1 - The core viewpoint of the articles indicates that since August, the open market operations have consistently pointed towards a net withdrawal of liquidity, with a total net withdrawal exceeding 26,265 billion yuan by August 12 [1][2][3] - Despite the net withdrawal, the funding prices in the interbank market have remained low and are on a downward trend, with the average DR007 rate at 1.4660% and DR001 at 1.2880% as of August 12 [1][2] - Analysts suggest that the prolonged decline in funding rates reflects the expectations of primary dealers regarding future funding rates and indicates the monetary authority's stance on liquidity management [1][3] Group 2 - The analysis highlights that the liquidity in the banking system has been relatively abundant since early August, with the average DR007 rate decreasing by 11.9 basis points compared to the previous months [2][3] - The People's Bank of China has been actively managing liquidity, as evidenced by the announcement of a 7,000 billion yuan reverse repurchase operation on August 7, despite already ample liquidity conditions [4][6] - Large banks have significantly increased their net lending, contributing to the overall liquidity in the market, with net lending levels returning to 50,000 billion yuan [7]