China-Singapore Jingwei Client, September 7th, the central bank announced on the 7th that in order to maintain a reasonable and sufficient liquidity in the banking system, the central bank launched a 100 billion yuan 7-day reverse repurchase operation by way of interest rate bidding on September 7, 2020, and won the bid Interest rates remain unchanged at 2.20%.

On the 7th, 80 billion yuan of reverse repurchase expired, realizing a net investment of 20 billion yuan.

Screenshot of the central bank website

　　Sino-Singapore Jingwei Client noticed that since August 7, the central bank has carried out reverse repurchase operations for 21 consecutive trading days.

Among them, since August 21, the central bank has conducted a 14-day reverse repurchase operation for 3 consecutive working days.

In terms of funds, on September 4, the inter-bank market has converged, and the weighted interest rate of overnight repurchase rebounded by 30bp to above the 2% mark.

　　Ping An Securities said that at the level of the central bank's liquidity level, September was a big month for fiscal expenditures, fiscal deposits decreased, and liquidity investment is expected to increase steadily.

　　On August 25, the State Council Information Office held a regular briefing on the State Council’s policies. Liu Guoqiang, deputy governor of the central bank, pointed out that in the next stage, liquidity should be maintained reasonably and abundant, but flooding will not be conducted.

Improve the convenience of financial support policies and support small and medium-sized banks to use big data for effective bank-enterprise connection.

Deepen the reform of quoted interest rates in the loan market, and guide loan interest rates to continue to decline.

Implement measures such as using re-lending and rediscounting funds to issue preferential interest rate loans and support the issuance of credit loans.

　　Sun Guofeng, Director of the Monetary Policy Department of the Central Bank, mentioned that the uncertainty brought about by the epidemic has increased and financial market sentiment will inevitably be affected. Monetary policy needs greater certainty to deal with various uncertainties, that is, three constants. , The orientation of a prudent monetary policy remains unchanged; the requirements for maintaining a flexible and appropriate operation remain unchanged, neither the market is short of money nor the market’s money overflows; the determination to adhere to the normal monetary policy remains unchanged.

　　In addition, Yu Yongding, a member of the Chinese Academy of Social Sciences, told the Sino-Singapore Jingwei client on September 6 that China needs to expand its fiscal expansion and monetary policy should cooperate with the need to further increase economic growth.

Yu Yongding said that under this circumstance, the future monetary policy may tend to be loose to match the expansionary fiscal policy.

　　Guojin Securities predicts that, looking forward to September, the largest contribution to liquidity may be fiscal investment. The fiscal expenditures from January to July this year are slower, 4.78 percentage points lower than last year, and the progress will be gradually accelerated in the future. The monthly fiscal investment may release about 600 billion yuan of liquidity, or hit a record high for the same period.

On the whole, liquidity will improve in September.

(Zhongxin Jingwei APP)