China-Singapore Jingwei Client, December 14th, the Central Bank issued an announcement on the 14th that in order to maintain a reasonable and sufficient liquidity in the banking system, the People's Bank of China launched a 20 billion yuan reverse repurchase operation by way of interest rate bidding on December 14, 2020, and the winning interest rate was 2.2. %.

　　Screenshot source: Central Bank website

　　Wind data shows that the central bank’s open market this week (December 14th to December 18th) totaled 450 billion reverse repurchase and MLF maturity, of which the reverse repurchase maturity scale from Monday to Friday was 50 billion and 60 billion respectively. , 20 billion, 10 billion and 10 billion yuan, another 300 billion yuan MLF expires on Wednesday.

　　Screenshot source: Wind

　　In addition, the central bank announced on November 30 that it will launch the mid-term lending facility (MLF) operation on December 15 (including the one-time renewal of the two MLF expirations on December 7 and 16). The specific operation amount will be Determined according to market demand and other circumstances.

　　According to data from the China Foreign Exchange Trading Center, the central parity of the RMB against the US dollar reported at 6.5361 on December 14, an increase of 44 basis points.

The median price of the previous trading day was reported at 6.5405, the closing price of onshore RMB at 16:30 was reported at 6.5411, and the closing price of RMB at 23:30 at night was 6.5463.

　　Prior to this, on the evening of December 11, the Central Bank and SAFE issued an announcement to lower the macro-prudential adjustment parameter of cross-border financing of financial institutions from 1.25 to 1.

Industrial Research pointed out that the People's Bank of China lowered the macro-prudential parameters of financial institutions' cross-border financing, which is intended to slow down the rate of foreign currency debt and leverage of financial institutions while cooling the appreciation of the renminbi.

This will slow the rate of RMB appreciation, but it is difficult to shake the appreciation trend before the fundamentals have changed significantly.

　　Industrial Securities issued a research report on December 13 and pointed out that last week (December 7th to December 11th) the central bank carried out a total of 150 billion reverse repurchase operations, even in the case of very loose funds, it continued small reversal. The purchase and launch conveyed a clear signal to the market to protect funds.

　　According to a research report by Bank of China Securities on December 13th, in November, the social finance grew by 13.6% year-on-year, a slight decrease of 0.1% from October, and the market's concerns about monetary policy tightening have increased.

BOC Securities believes that under the pace of the New Year's Eve in December, the continuation of financing in January, the Spring Festival holiday in February, and the two sessions in March, the central bank's monetary policy will hardly be significantly tightened before the end of the first quarter.

　　In addition, Mingming's bond research team issued a document on the morning of the 14th, saying that the double killing of stocks and bonds last Friday was behind the rise in concerns about currency tightening. We believe that from the perspective of policy orientation, the trend of continued economic recovery and rising inflation will continue, but it will not touch the tightening of monetary policy. (Zhongxin Jingwei APP)