The People's Bank of China will conduct 600 billion yuan MLF operation.

The People's Bank of China announced on September 24th that in order to maintain ample liquidity in the banking system, on September 25th, the People's Bank of China will conduct a 600 billion yuan medium-term lending facility operation with a fixed quantity, interest rate tender, and multiple price bid method for a period of one year. As 300 billion yuan of MLFs mature in the same month, this means that the net injection of MLFs will reach 300 billion yuan, marking the seventh consecutive month of increased lending. Wang Qing, Chief Macro Analyst at Orient Securities, believes that the continuous injection of medium-term liquidity by the central bank signals a continued use of quantitative monetary policy instruments, demonstrating a supportive stance on monetary policy. This will help facilitate the smooth issuance of government bonds and better meet the credit and financing needs of enterprises and residents.