Skip to content

China Escalates Cash Injection Ahead of Golden Week Holiday

  • PBOC added 868 billion yuan via OMO this week, most since 2019
  • Stability is paramount ahead of party meeting: Maybank
People pose for photos in front of an installation celebrating the upcoming National Day and the 20th Communist Party Congress at Tiananmen Square in Beijing, on Sept. 29.

People pose for photos in front of an installation celebrating the upcoming National Day and the 20th Communist Party Congress at Tiananmen Square in Beijing, on Sept. 29.

Photographer: Jade Gao/AFP/Getty Images

China bumped up its injection of short-term liquidity by more than nine times this week, signaling its resolve to avoid a cash squeeze during the Golden Week and in the run-up to the Communist Party’s twice-a-decade leadership summit.

The People’s Bank of China net injected 868 billion yuan ($122 billion) into banking system via reverse repos this week, the most since January 2019. That’s after a net injection of 92 billion yuan in the previous week. Quarter-end and Golden Week holidays next week may have played a part in the PBOC’s decision to boost liquidity, according to Maybank Securities Pte Ltd.