The People's Bank of China conducts a 300 billion yuan 14-day reverse repurchase operation using a multiple-price bidding method.

The People's Bank of China announced on September 22 that it conducted a 300 billion yuan 14-day reverse repurchase operation using a fixed quantity, interest rate bidding, and multiple price winning methods. This was the first operation of its kind since the People's Bank of China announced adjustments to the operation rules of this tool on September 19. On September 19, the People's Bank of China changed the open market 14-day reverse repurchase operations from single price winning to multiple price winning. This means that the 14-day reverse repurchase no longer has a unified winning interest rate, allowing institutions to fully utilize their market-based pricing capabilities and better reflect differentiated fund demands of institutions. In recent years, the People's Bank of China usually starts the 14-day reverse repurchase operations before the National Day and Spring Festival holidays. "Launching the 14-day reverse repurchase operation earlier than usual this time is conducive to ensuring a stable fund market across quarters and holidays, reflecting a moderately loose monetary policy orientation," said Wang Qing, chief macro analyst at Orient Securities. This move is further optimization of the central bank's liquidity management toolbox, while also strengthening the policy position of the 7-day reverse repurchase operation interest rate.