The central bank: The average daily turnover of the two markets in February was 2.2936 trillion yuan, a 24% decrease from the previous month.

On March 31, the People's Bank of China released the financial market operation situation for February 2026. At the end of February 2026, the Shanghai Composite Index closed at 4162.9 points, up 1.1% month-on-month; the Shenzhen Component Index closed at 14495.1 points, up 2.0% month-on-month. In February 2026, the average daily trading volume of the two markets was 2.2936 trillion yuan, down 24.0% month-on-month. At the end of February 2026, the Shanghai Gold Exchange Au (T+D) contract closed at 1142.5 yuan per gram, down 3.3% month-on-month. In February 2026, the Shanghai Gold Exchange traded 2813.9 tons of gold, a year-on-year decrease of 52.9%; the Shanghai Futures Exchange traded 14,000 tons of gold, a year-on-year decrease of 7.4%. 2026 Financial Market Operation Situation in February I. Currency Market Operation Situation In February 2026, the average daily turnover of interbank lending was 429.32 billion yuan, an increase of 87.1% year-on-year; the average daily turnover of bond repurchase in the interbank market was 74 trillion yuan, an increase of 52.9% year-on-year. At the end of February 2026, the outstanding balance of interbank lending was 1 trillion yuan, and the outstanding balance of bond repurchase in the interbank market was 11.6 trillion yuan. In February 2026, the weighted average monthly interest rate of DR001 in the interbank repo market was 1.33%, basically flat compared to the previous month; the weighted average monthly interest rate of DR007 was 1.49%, a decrease of 2 basis points month-on-month; the weighted average monthly interest rate of R001 in the interbank repo market was 1.41%, basically flat compared to the previous month. In February 2026, the average daily spread between DR001 and the 7-day reverse repo operation rate of the central bank was -7 basis points, and the average daily spread between R001 and DR001 was 6 basis points. II. Bond Market Operation Situation In February 2026, the net financing of government bonds was 1.40138 trillion yuan, a decrease of 292.53 billion yuan year-on-year; the net financing of corporate bonds was 152.18 billion yuan, a decrease of 18.02 billion yuan year-on-year. At the end of February 2026, the custodial balance of the bond market was 19.89 trillion yuan. In February 2026, the turnover of the cash market was 23.3 trillion yuan, a decrease of 21.3% year-on-year; the turnover rate of the cash market in the interbank bond market was 11.6%, a decrease of 7 percentage points month-on-month; the spread between buying and selling prices of active 10-year Treasury bonds was 0.83 basis points. At the end of February 2026, the yield of the 10-year Treasury bonds was 1.78%; the yield spread between 10-year and 1-year Treasury bonds was 46 basis points, basically unchanged from the previous month; the yield spread between the AAA-rated 3-year medium-term notes and the 3-year Treasury bonds was 44 basis points, basically unchanged from the previous month. Image 3 Yield Curve of Government Bonds Image 4 Changes in the Yield Curve of Government Bonds in February 2026 At the end of February 2026, the custodial balance of foreign institutions in the Chinese bond market was 3.4 trillion yuan, accounting for 1.7% of the custodial balance in the Chinese bond market. From January to February 2026, the Panda Bonds issued a total of 50.44 billion yuan, with 4 new foreign institutions entering the interbank bond market. III. Derivatives Market Operation Situation In February 2026, the turnover of RMB derivatives market in the interbank market was 3.8 trillion yuan, a decrease of 11.7% year-on-year. At the end of February 2026, the closing price (average) of the 1-year FR007 swap rate was 1.49%, a decrease of 2 basis points month-on-month. In February 2026, the turnover of the government bond futures market was 6.7 trillion yuan, a decrease of 18.4% year-on-year. At the end of February 2026, the open interest of government bond futures was 709,000 lots, an increase of 32.5% year-on-year; the closing price of the 10-year government bond futures main contract was 108.4 yuan, an increase of 0.1% month-on-month. IV. Bill Market Operation Situation In February 2026, the acceptance amount of commercial drafts was 3.1 trillion yuan, and the discount amount was 2.4 trillion yuan. At the end of February 2026, the balance of commercial draft acceptance was 20.8 trillion yuan, an increase of 6.1% year-on-year; the balance of discount was 15.7 trillion yuan, an increase of 8.5% year-on-year. V. Gold Market Operation Situation At the end of February 2026, the Shanghai Gold Exchange Au (T+D) contract closed at 1142.5 yuan per gram, a decrease of 3.3% month-on-month. In February 2026, the Shanghai Gold Exchange traded 2813.9 tons of gold, a year-on-year decrease of 52.9%; the Shanghai Futures Exchange traded 14,000 tons of gold, a year-on-year decrease of 7.4%. VI. Foreign Exchange Market Operation Situation At the end of February 2026, the closing price of the RMB against the US dollar in the interbank foreign exchange market was 6.8559, an appreciation of 1.35% compared to the end of the previous month; the CFETS RMB exchange rate index was 98.58, an appreciation of 1.64% compared to the end of the previous month. VII. Stock Market Operation Situation At the end of February 2026, the Shanghai Composite Index closed at 4162.9 points, up 1.1% month-on-month; the Shenzhen Component Index closed at 14495.1 points, up 2.0% month-on-month. In February 2026, the average daily trading volume of both markets was 2.2936 trillion yuan, down 24.0% month-on-month. VIII. Holder Structure of the Interbank Bond Market As of the end of February 2026, there were a total of 3,890 legal entity members in the interbank bond market, all of which were financial institutions. In terms of the scale of holdings, the top 50 investors in corporate credit bonds accounted for 53.7% of the holdings, mainly concentrated in state-owned large commercial banks (proprietary), public funds (asset management), insurance financial institutions (asset management), etc.; the top 200 investors accounted for 84.4% of the holdings. In February 2026, in terms of trading volume, according to statistics of legal entities, the top 50 investors in the corporate credit bond market in the interbank bond market accounted for 61.1% of the trading volume, mainly concentrated in securities companies (proprietary), fund companies (asset management), joint-stock commercial banks (proprietary), and the top 200 investors accounted for 90.8% of the trading volume.