The People’s Bank of China (PBOC) recently conducted a significant medium-term lending facility (MLF) operation, injecting 300 billion yuan ($41.8 billion). This move aims to stabilize the Chinese banking system and maintain favorable liquidity conditions amid economic uncertainties. The central bank’s operation follows the launch of direct repos worth 1.7 trillion yuan in January, offering an early release of medium-term liquidity. The latest injection complements this strategy, contributing to a total MLF loan balance exceeding 4.09 trillion yuan.