Sino-Singapore Jingwei Client, November 27, according to the central bank's website, in order to maintain a reasonable and sufficient liquidity in the banking system, on November 27, 2020, the People's Bank of China launched a 120 billion yuan reverse repurchase operation by way of interest rate bidding.

Because 80 billion yuan of reverse repurchase expired that day, a net investment of 40 billion yuan was realized.

As of the 27th, the central bank has carried out reverse repurchase operations for 9 consecutive trading days.

　　Sino-Singapore Jingwei Data Map

　　Wind data shows that this week (November 23-November 27), a total of 300 billion yuan of reverse repurchases expired in the open market.

This week, the central bank has carried out a total of 430 billion yuan in reverse repurchase operations, achieving a net investment of 130 billion yuan.

　　In terms of market liquidity, funds were stable on Thursday, and the short-end Shibor varieties rose and fell mixed.

Overnight varieties reported 28bp down at 1.298%, 7-day up 7bp at 2.294%, 14-day down at 2.8bp at 2.812%, and 1-month up 0.2bp at 2.718%.

　　On the 26th, the official website of the central bank released the "Report on China's Monetary Policy Implementation in the Third Quarter of 2020".

The "Report" pointed out that, on the whole, a prudent monetary policy embodies forward-looking, proactive, precise, and effective monetary policy, with remarkable results, further improvement of transmission efficiency, and solid financial support for the real economy.

　　Regarding the next trend of monetary policy, the "Report" believes that a prudent monetary policy should be more flexible, moderate, and precise, to better meet the needs of high-quality economic development, and pay more attention to the quality and efficiency of financial services to the real economy.

Improve the money supply control mechanism, secure the total gate of the money supply, and scientifically grasp the intensity, rhythm and focus of monetary policy operations in accordance with the macro situation and market needs, maintain reasonable and sufficient liquidity, and maintain the same growth rate of broad money supply and social financing scale The growth rate of nominal GDP reflecting potential output basically matches.

Improve the market-based interest rate formation and transmission mechanism, deepen the reform of loan market quote interest rates, continue to unleash the potential of reforms to promote lower loan interest rates, comprehensively implement policies to promote a significant drop in social financing costs, and give play to the decisive role of the market in the formation of the RMB exchange rate.

Enhance the precise drip irrigation function of structural monetary policy tools and improve policy directness.

Pay attention to anticipation management and maintain stable price levels.

Handle internal and external balances and short-term and long-term relationships, implement normal monetary policies for as long as possible, and keep the macro leverage ratio basically stable.

We will work hard to prevent and resolve major financial risks, improve financial risk prevention, early warning, disposal, and accountability systems, maintain financial security, and firmly hold the bottom line of preventing systemic financial risks.

With innovation-driven, high-quality supply leading and creating new demand, we will accelerate the formation of a new development pattern with domestic and international cycles as the mainstay and mutual promotion of domestic and international cycles.

　　Industrial Securities pointed out that the current round of monetary policy is small enough to make a big gain.

In the medium and long term, as economic growth converges and returns to a new low platform, under the constraints of rising macro leverage and fiscal sustainability, policy regulation may also be more reasonable, focusing on smoothing economic fluctuations. There will be a big opening and closing, and the overall volatility will also decrease.

　　CITIC Securities believes that the subsequent decline in loan interest rates will be relatively limited, and the overall monetary policy level will gradually return to normal.

It is expected that in 2021, the growth rate of social financing will drop by about 2%, the macro leverage ratio will remain stable, and the RMB exchange rate is expected to further appreciate slightly driven by market-oriented factors.

(Zhongxin Jingwei APP)