The central bank uses multiple tools to support liquidity, and the funding situation in October is expected to remain stable.

On October 8, the central bank conducted 606 billion yuan of overnight reverse repos and 1.2 trillion yuan of 3-month outright reverse repos. Taking into account the maturities of various tools on that day, the total net withdrawal from open market operations was 408.5 billion yuan. Industry insiders believe that factors such as the return of cash after the National Day holiday and earlier fiscal spending are expected to support liquidity conditions in early October; in the middle and latter part of the month, attention should be paid to the disruptions caused by tax payments, the month-end period, and the maturity of medium- and long-term liquidity tools. As the central bank's liquidity management becomes more flexible, liquidity conditions are expected to remain generally stable, but banks' demand for medium- and long-term funds still warrants attention.