China's central bank will pump up to 1 trillion yuan ($149 billion) into the banking system each day as the Golden Week holiday approaches. The People's Bank of China will run the operations from September 28 through October 8, without disclosing which days or at what cost.
The People's Bank of China said Wednesday it will inject up to 1 trillion yuan ($149 billion) per day through short-term liquidity tools as the holiday nears. The bank will conduct overnight reverse repo operations from September 28 to October 8.
According to Reuters: "to meet short-term liquidity needs in the banking system" is how the PBOC described the purpose of the operations. It did not say on which days it would act, nor did it disclose the borrowing cost. Liquidity demand typically rises ahead of holidays in China.
The timing overlaps two closures. China's interbank bond market will shut from October 1 to October 7 for the National Day holiday, and it will also close from September 25 to September 27 for the Mid-Autumn Festival. China's stock market will close for the same holidays and resume trading on October 8, after Golden Week ends.
Source: Investing.com
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