Key Points
- Operation on Sept. 5, 2025: People’s Bank of China (Zhongguo Renmin Yinhang 中国人民银行) will conduct a buyout reverse repo (Maiduanshi Nihuigou 买断式逆回购操作) of ¥1,000,000,000,000 (10,000 亿元 / $138.9B) with a 3‑month (91‑day) term.
- September rollover load: Roughly ¥1,600,000,000,000 ($222.2B) of medium‑/long‑term liquidity matures in September — split into ¥1,000,000,000,000 (3‑month), ¥300,000,000,000 (6‑month), and ¥300,000,000,000 (1‑year MLF / Zhongqi Jiedai Bianli 中期借贷便利).
- Policy and disclosure signals: Buyout reverse repos were added to the toolkit in Oct 2024, and since June the PBOC has published tender results one day before operations, enhancing transparency; summer operations totaled ¥1.4T (June), ¥1.4T (July), and ¥1.2T (August).
- Market implications & watch items: These rollovers help stabilize short‑to‑medium term market funding and ease short‑end pressure; watch the Sept. 5 tender results, roll‑over coverage, and subsequent moves in repo rates and interbank spreads.
People’s Bank of China (Zhongguo Renmin Yinhang 中国人民银行) will run a major liquidity operation on September 5, 2025.
Quick snapshot — what the central bank announced
The central bank said it will carry out a fixed‑quantity, fixed‑rate, multi‑price winning tender for a buyout reverse repurchase operation (Maiduanshi Nihuigou 买断式逆回购操作) on September 5, 2025.
The operation size is 10,000 亿元 (¥1,000,000,000,000 RMB — $138.9 billion USD) with a 3‑month (91‑day) term.
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How much liquidity rolls over in September
September sees roughly ¥1,600,000,000,000 RMB ($222.2 billion USD) of medium‑ and long‑term liquidity maturing in total.
That total breaks down into three clear buckets:
- ¥1,000,000,000,000 RMB ($138.9 billion USD) — 3‑month buyout reverse repos maturing.
- ¥300,000,000,000 RMB ($41.7 billion USD) — 6‑month buyout reverse repos maturing.
- ¥300,000,000,000 RMB ($41.7 billion USD) — 1‑year Medium‑term Lending Facility (Zhongqi Jiedai Bianli 中期借贷便利, MLF) maturing.
Context — recent policy operations and disclosure changes
Since a reserve requirement ratio cut in May, the PBOC has maintained net injections of medium‑term liquidity through the MLF and buyout reverse repos.
In June the central bank changed its disclosure practice to publish buyout reverse‑repo tender results one day before operations, increasing transparency on timing and scale.
Over the summer the PBOC executed multiple buyout reverse‑repo operations:
- June operations totaled 14,000 亿元 (¥1.4 trillion RMB — $194.4 billion USD).
- July operations totaled 14,000 亿元 (¥1.4 trillion RMB — $194.4 billion USD).
- August operations totaled 12,000 亿元 (¥1.2 trillion RMB — $166.7 billion USD).
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Why this matters — for markets, banks, and investors
Buyout reverse repos (Maiduanshi Nihuigou 买断式逆回购操作) are a targeted tool for the PBOC to provide medium‑term liquidity while keeping flexibility on maturities and counterparties.
The central bank formally added buyout reverse repos to its open‑market toolkit in October 2024.
These operations are conducted with primary dealers and, in principle, run about once a month with maturities of up to one year.
Rolling maturing liquidity with fresh operations helps stabilize short‑to‑medium term market funding and supports the banking system’s liquidity needs.
For investors and treasury teams, predictable rollovers reduce funding volatility and relieve short‑end pressure in interbank markets.
For banks, timely injections via buyout reverse repos and MLF reduce the urgency to scramble for term funding, which can ease upward pressure on short‑term rates.
- Stabilizes Market Funding: Helps to stabilize short-to-medium term market funding conditions.
- Supports Banking System: Supports the liquidity needs of the banking system.
- Reduces Funding Volatility: Predictable rollovers reduce funding volatility for investors and treasury teams.
- Eases Interbank Pressure: Relieves short-end pressure in interbank markets.
- Mitigates Rate Pressure: Reduces urgency for banks to scramble for term funding, easing upward pressure on short-term rates.
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What to watch next
- Sept. 5 result details. Watch the tender results for the exact winning rates and participating counterparties.
- Roll‑over coverage. Compare the fresh operation size to the maturing amount to assess net liquidity change.
- Market reaction. Look for moves in repo rates, short‑term bond yields, and interbank spreads after the operation.
- Policy signals. Note whether the PBOC keeps the approach of monthly buyout reverse repos or adjusts frequency/maturities.
Bottom line
The PBOC’s ¥1,000,000,000,000 RMB ($138.9 billion USD) buyout reverse repo on September 5, 2025 is a strategic rollover that matches a large portion of maturing short‑to‑medium term liquidity in September.
This move underscores the central bank’s preference for managed, transparent liquidity injections to stabilize funding conditions without committing to long‑term balance‑sheet expansion.
Keep an eye on subsequent tender details and market rates to read the PBOC’s near‑term policy stance.
References
- 央行：9月5日将开展10000亿元买断式逆回购操作 – 澎湃新闻
- Open market operations announcements – People’s Bank of China
- Reports on central‑bank liquidity tools and market operations – Xinhua
People’s Bank of China (Zhongguo Renmin Yinhang 中国人民银行)
