PBoC Injects CNY 600 Billion of MLF into Banking System

The People’s Bank of China (PBoC) injected a total of CNY 600 billion into financial institutions on September 25 through its one-year Medium-Term Lending Facility (MLF), aiming to maintain ample liquidity in the banking system. With CNY 300 billion in MLF funds maturing this month, the operation resulted in a net liquidity injection of CNY 300 billion—marking the seventh consecutive month of net MLF injections. The central bank conducted the operation using a fixed-quantity, interest-rate bidding, and multiple-price bidding method. This approach, introduced in March, means the PBoC no longer announces a fixed interest rate for MLF operations. This month’s net injection was the same as in August. Earlier this week, the central bank also conducted CNY 300 billion of 14-day reverse repos—the first such operation since it adjusted the tool's bidding rules last week.