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Breaking news! Major announcement from the central bank!
On August 15, the People's Bank of China unexpectedly announced a major decision: it would release 577.7 billion yuan of funds to stabilize the market. Such a huge amount of capital injection is no joke. Recently, the banking system has been facing multiple pressures. On the one hand, the medium-term lending facility (MLF) is about to expire, and on the other hand, the tax season peak and the superposition effect of government bond issuance payments have led to a tightening of market funds. The central bank's large-scale operation is aimed at injecting "live water" into the market, ensuring unimpeded capital flow and avoiding capital shortages in the banking system. It is worth noting that there were 7.1 billion yuan of reverse repurchases due on the same day. The central bank not only renewed the full amount, but also injected an additional 570.6 billion yuan to enhance market confidence.
What is more noteworthy is that on August 15, 401 billion yuan of MLF matured at the same time. The market generally expected the central bank to renew it immediately, but the central bank announced that it would postpone this action to August 26. Behind this decision, the central bank revealed the careful consideration and strategic considerations of the central bank. The central bank did not rush to release all the funds at once, but chose to judge the situation and implement it in steps, ensuring that the market funds were sufficient and avoiding the impact of excess funds on market stability. In short, this series of operations by the central bank is like a shot of cardiotonic for the market, clearly conveying the signal that funds will neither disappear suddenly nor flood.
Under the current situation, maintaining market stability is the top priority. This series of measures by the central bank not only aims to solve the current problems, but also reflects its macro-control of the overall economic situation. By implementing the strategy of "precision drip irrigation", the central bank has not only grasped the rhythm of capital injection, but also effectively calmed market sentiment. This operation is undoubtedly sending a clear message to the market: the release of funds will be orderly and prudent, and the operation of the market will remain stable. At a time when the economy needs stability, the central bank took decisive action and protected the smooth operation of the market in its unique way.
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