The People's Bank of China adjusts the 14-day reverse repurchase operation rules.

On September 19, the People's Bank of China announced that starting from that day, the 14-day reverse repurchase operations in the open market will be adjusted to fixed quantity, rate bidding, and multiple price wins. The People's Bank of China stated that this adjustment is aimed at maintaining ample liquidity in the banking system and better meeting the differentiated fund demands of various participating institutions. The timing and scale of the 14-day reverse repurchase operations will be determined according to liquidity management needs. Experts believe that after changing to multiple price wins, the 14-day reverse repurchase no longer has a unified bid rate, allowing institutions to fully exercise their market-based autonomous pricing ability and better reflect differentiated fund demands of institutions. Following the adjustment, the 14-day reverse repurchase operations will be carried out flexibly based on the liquidity of the banking system, making liquidity management more precise and efficient. At the same time, this move will also help further strengthen the policy position of the 7-day reverse repurchase operations rate.