PBOC Launches Massive Liquidity Boost for Chinese Bond Market

Facing a looming liquidity crisis due to $4,000 billion of short-term debt maturing this year, the People’s Bank of China (PBOC) intervened with an unprecedented monetary response. In August, it injected $1,400 billion into the financial system through reverse repo operations, aiming to prevent a potential funding freeze in its bond market. This large-scale intervention marks a significant strategic shift in China’s approach to managing its financial flows.