China: monetary policy tools and operations

This dossier follows the Chinese central bank’s liquidity instruments and their terms, distinguishing announced operations from measured effects.

Last updated : 3 November 20262 key moments

27 October 2025 archive photograph, unrelated to execution of the operation. Boubloub, CC0, resized. — Boubloub — CC0 https://creativecommons.org/publicdomain/zero/1.0/ — 27 octobre 2025, taille réduite.

Where things stand

On 3 November 2026, the central bank announces a 100 billion yuan swap operation with 31 participants and a winning fee of 10 basis points.

3 November 2026Reported information

China’s central bank announces 100 billion yuan swap operation

The People’s Bank of China announced a 100 billion yuan operation on 3 November 2026 under its swap facility for securities firms, funds and insurers. The winning fee was 10 basis points.

People’s Bank of China headquarters in Beijing, 2025 archive photograph. — 27 October 2025 archive photograph, unrelated to execution of the operation. Boubloub, CC0, resized. — Boubloub — CC0 https://creativecommons.org/publicdomain/zero/1.0/ — 27 octobre 2025, taille réduite.

According to the official result reproduced by The Paper, 31 securities firms and fund managers took part in the tender. The facility allows eligible institutions to exchange assets for more liquid securities that can be used to obtain market funding.

The operation supports funding conditions for stock-market participants. Its announced size does not establish that 100 billion yuan of stock purchases have already occurred or demonstrate a measured effect on share prices. The accounts consulted rely on central bank communications.

Sources 2

2 November 2026Reported information

China’s central bank reports 541 billion yuan in overnight reverse repos

The People’s Bank of China conducted a 541 billion yuan overnight reverse repo operation at 1.25% on 2 November 2026, according to Xinhua Finance and Shanghai Securities News. It was the first operation under its new framework for steering short-term rates.

People’s Bank of China headquarters in Beijing, October 2025. Archive image, resized. Boubloub, CC0. — Boubloub — CC0 https://creativecommons.org/publicdomain/zero/1.0/ — 27 octobre 2025, taille réduite.

The framework provides for tenders every business day, at a fixed interest rate with bidding for quantities. Shanghai Securities News says the operation met all demand from eligible primary dealers.

Announced on 30 October, the reform makes the overnight rate the main reference for market operations. Seven-day operations are intended mainly for tax-payment periods and month-ends. The 541 billion yuan is the gross amount of this operation; the sources do not establish an equivalent net liquidity injection or a measured effect on lending.

Sources 3