The central bank conducted a record-breaking 1.4 trillion yuan of reverse repurchase agreements, there is still room to maneuver with policy tools.

As the middle of the month approaches, the People's Bank of China took action to protect market liquidity. According to the official website of the People's Bank of China, on July 15th, the People's Bank of China conducted 1400 billion yuan of reverse repurchase agreements through fixed quantity, bidding at interest rates, and multiple price bids, including 800 billion yuan for a 3-month term and 600 billion yuan for a 6-month term. This is also the largest scale of a single operation since the launch of reverse repurchase agreements.