The central bank opened the market and launched a net investment of 20 billion yuan in reverse repurchase operations.

This article first appeared on WeChat public number: Wind information. The content of the article belongs to the author's personal opinion and does not represent the position of Hexun.com. Investors should act accordingly, at their own risk.

(Original title: The central bank has an open market for 60 billion reverse repurchase operations with a net investment of 20 billion)

Hong Kong's Wind Info Agency reported that on Thursday (July 27), the central bank carried out a 60 billion 7-day reverse repurchase operation. On that day, 40 billion reverse repurchase expired, with a net investment of 20 billion.

The central bank conducted a reverse repurchase operation of 80 billion 7 days and 50 billion 14 days on Wednesday. On the same day, 130 billion reverse repurchase expired, and the amount of maturity on the day was fully hedged for two consecutive days. Market participants pointed out that in the case of liquidity is still tight, the central bank's open market operations (OMO) to achieve neutral hedging, indicating that monetary policy remains "not loose." At present, the pressure on the maturity of funds before the end of the month is still not small. The superimposed payment and the end of the month factors will keep the capital fabrics in a tight balance. However, with the continued “replenishment of water” and the impact of tax payment, the demand for cross-months will gradually increase. Satisfaction, the overall pressure on the fund will continue to ease, and it is expected that liquidity will see a more significant improvement after the month.

Wind information statistics show that the central bank's open market this week has 540 billion reverse repurchase maturity, from Monday to Friday, respectively, 130 billion, 140 billion, 130 billion, 40 billion and 100 billion; in addition, there are 138.5 billion MLF to Monday Period, no repurchase and central bank bills expired.

The Political Bureau of the CPC Central Committee held a meeting to implement a proactive fiscal policy and a prudent monetary policy to ensure that the bottom line of systemic financial risks is not maintained; actively and steadily resolve accumulated local government debt risks, effectively regulate local government debt financing, and resolutely contain Implicit debt increase.

In 2017, the People's Bank of China branch president's symposium was held on Tuesday, demanding continued implementation of a stable and neutral monetary policy, maintaining moderate growth of monetary credit and liquidity; strictly regulating financial market transactions and strengthening Internet financial supervision; Improve the efficiency and level of financial services in an all-round way; continue to deepen financial system reform; and steadily expand financial opening up.

The foreign media quoted people familiar with the matter as saying that the Chinese Ministry of Finance plans to renew 600 billion yuan for the establishment of special investment bonds of CIC. In 2007, China issued eight special government bonds with a concentration of 10 years and 15 years. Starting from August, the second half of the year will continue to expire in four phases, with a total scale of 696.378 billion. Among them, the big head is 600 billion that expired on August 29, which is a targeted bond issue, which is actually purchased by the central bank.

Guoxin’s consolidation believes that the special government bonds are due to be issued, which has little impact on the secondary bond market. Because of the original 600 billion treasury bonds issued, the big probability will be that the central bank will issue funds through financial institutions, and there will be no contraction of the base currency.