The People's Bank of China (hereinafter referred to as the "PBOC") has previously stated that in order to maintain sufficient liquidity in the banking system, on March 16, 2026, it will carry out a 500 billion yuan buyout reverse repurchase operation through fixed quantity, interest rate bidding, and multi price bidding, with a term of 6 months (182 days). Data shows that there were 600 billion 6-month buyout reverse repos due in March. As a result, the People's Bank of China launched a 500 billion yuan buyout reverse repurchase operation on March 16th, which means that the six-month buyout reverse repurchase will be renewed with a reduced volume of 100 billion yuan, marking the first time since June 2025 that a six-month buyout reverse repurchase has been renewed with a reduced volume. In addition, the three-month buyout reverse repurchase has reduced by 200 billion yuan this month, which means that the total net withdrawal of buyout reverse repurchase operations for two maturity varieties in March this year is 300 billion yuan, the first time since June 2025. This operation is related to the high net liquidity injection scale of 1.9 trillion yuan in the two months to the beginning of the year, and the continued abundance of funds after the Spring Festival. ”Wang Qing, Chief Macro Analyst of Dongfang Jincheng, told reporters that in response to the potential tightening of liquidity, the central bank has continuously injected medium and long-term liquidity into the market through a combination of various policy tools, guiding the capital market to remain in a relatively stable and abundant state. This not only assists in the issuance of government bonds and supports financial institutions in stabilizing their credit support for the real economy, but also signals the continued strengthening of quantitative policy tools, indicating the main tone of monetary policy continuing to be moderately loose. Industry insiders have stated that based on past experiences, the liquidity supply and demand situation in March has been relatively stable. On the one hand, cash withdrawn by residents before the Spring Festival is gradually deposited back into banks after the holiday, increasing the available funds for banks; On the other hand, March, as the end of season fiscal expenditure, was relatively strong, and local bond issuance usually slowed down, reducing banks' capital consumption. Taking into account the seasonal factors mentioned above, liquidity will remain abundant in March. The reduction and continuation of 3-month buyout reverse repurchase fully demonstrates that the central bank will flexibly manipulate the variety of tools and adjust the scale of operations based on liquidity and market conditions, and does not mean a shift in monetary policy. It is understood that open market operations are only one of the ways in which the central bank injects liquidity. The central bank focuses on the combination of long and short-term tools and flexibly adjusts the liquidity of the banking system. Since the beginning of this year, the central bank has net injected about 2 trillion yuan of medium and long-term funds through various tools. (New Society)