In order to maintain sufficient liquidity in the banking system, today (February 13) the People's Bank of China launched a 1,000 billion yuan buyout reverse repurchase operation with a fixed quantity, interest rate bidding, and multiple price winning bids, with a term of 6 months (182 days).

Based on previous operations and maturity amounts, the total net investment in buyout reverse repurchases in February was 600 billion yuan, the highest in the past three months.

What is a buyout reverse repurchase?

The buyout reverse repurchase is a new tool launched by the People's Bank of China in October 2024. It is an additional medium- and long-term fund invested on the basis of the central bank's daily continuous 7-day reverse repurchase operations based on the needs of primary dealers. Buyout reverse repos can enable the central bank to adjust market liquidity in a more timely and precise manner.

(CCTV reporter Sun Yan)