Lates News

Ming Ming, chief economist of CITIC Securities, stated that the transition of 14-day reverse repurchase operations from quantity tendering to rate tendering indicates a shift from using interest rate as a control tool to using quantity as a control tool. This change is beneficial for establishing a market-oriented interest rate control mechanism where the policy rate is based on the 7-day reverse repurchase operation rate, and other term operation rates gradually become market-driven, thus streamlining the interest rate transmission mechanism from short to long term.