To identify stock trading opportunities, refer to the Golden麒麟 Analyst Research Reports, which are authoritative, professional, timely, and comprehensive. On February 3rd, the central bank announced that, to maintain ample liquidity in the banking system, the People's Bank of China will conduct an 800 billion yuan outright reverse repo operation on February 4th, 2026, using a fixed amount, interest rate tender, and multiple-price award method, with a maturity of 3 months (91 days).
Data indicates that 700 billion yuan in 3-month outright reverse repos matured in February. Consequently, the central bank's 800 billion yuan operation signifies a rollover with an increased volume for the month, with the incremental amount being 100 billion yuan. This marks the first time in nearly four months that the 3-month outright reverse repo has been rolled over with an increased volume, demonstrating the central bank's injection of medium-term liquidity into the market via this policy tool this month. Wang Qing, Chief Macro Analyst at Dongfang Jincheng, pointed out that this action, while assisting government bond issuance and guiding financial institutions to increase monetary and credit supply, also signals the continued strengthening of quantitative policy tools, indicating that monetary policy maintains a supportive stance.
"The increased rollover of the 3-month outright reverse repo also implies a further reduced likelihood of a near-term reserve requirement ratio (RRR) cut. Following the central bank's package of structural policies on January 15th, monetary policy is currently in an observation period in the short term," Wang Qing stated. Lou Feipeng, a researcher at the Postal Savings Bank of China Research Institute, stated that the central bank's continuation of its previous medium-term liquidity injection pace primarily addresses the rising cash demand before the Spring Festival, the liquidity drain from January's net financing of local government bonds, and the credit supply pressure from the "good start" in lending. The use of a multiple-price award method enhances market pricing efficiency. "It is expected that the DR007 will stabilize around 1.5%, medium-to-long-term liquidity in the banking system will significantly improve, and the funding market is expected to remain stable across the holiday period."
On the same day, the central bank's release of liquidity supply data for various central bank instruments in January 2026 showed a net injection of 700 billion yuan through the Medium-term Lending Facility (MLF), a net withdrawal of 79 billion yuan through the Standing Lending Facility (SLF), and a net injection of 64.1 billion yuan through other structural monetary policy tools. Regarding open market operations, January saw a net injection of 100 billion yuan from government bond transactions, a net injection of 167.8 billion yuan from 7-day reverse repos, a net withdrawal of 60 billion yuan from central treasury cash management, and a net injection of 100 billion yuan from reverse repos of other maturities. Regarding this, Lou Feipeng commented that in January this year, the central bank's total liquidity injection of approximately 1.2 trillion yuan effectively offset pressures from pre-holiday cash demand, government bond issuance, and the "good start" in credit, demonstrating a precise and forceful liquidity supply. The net withdrawal of 79 billion yuan via the SLF reflects overall ample liquidity in the banking system, while the 60 billion yuan withdrawal from treasury cash management represents a normal offsetting operation. "This policy combination highlights the central bank's intention to maintain stable funding conditions and strengthen medium-to-long-term support, providing solid monetary backing for steady economic growth."
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