The central bank continues to conduct 3-month period reverse repurchase agreements, reducing the amount of funds available. Industry insiders say this does not mean a shift in monetary policy.

The People's Bank of China announced that on March 6th, it will conduct 800 billion yuan of reverse repurchase operations with a fixed quantity, interest rate bidding, and multiple price winning bids for a term of 3 months. Industry experts believe that considering seasonal factors, liquidity is expected to remain ample in March. The decision to continue reducing reverse repurchase operations for a 3-month term indicates that the central bank will flexibly adjust the variety of tools and operation scale based on liquidity and market conditions, rather than signify a shift in monetary policy. In recent years, the central bank has accelerated the transformation of its monetary policy framework towards a price-based approach, with the operation volume of monetary policy tools primarily serving interest rate regulation objectives.