FINANCE

PBOC Injects 50 Billion Yuan in November to Steady Year-End Liquidity

Published: Dec. 3, 2025 3:20 a.m. GMT+8

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People’s Bank of China

China’s central bank injected a net 50 billion yuan ($7.07 billion) into the financial system in November through government bond purchases, as it continues efforts to manage liquidity amid year-end funding pressures.

According to a Tuesday statement from the People’s Bank of China (PBOC), the central bank bought 50 billion yuan of government bonds on the open market with no offsetting sales, resulting in a net injection of 50 billion yuan. The move follows a 200-billion-yuan injection in October, when the PBOC resumed bond purchases after a nine-month pause.

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The People’s Bank of China injected a net 50 billion yuan through government bond purchases and net 500 billion yuan via repo operations in November 2024.
Bond market enthusiasm cooled as 10-year government bond yields rose to 1.83%, and foreign demand for yuan bonds is expected to decline as the yuan stabilizes.
The PBOC is expected to maintain a loose monetary policy in 2026, supporting liquidity and targeted sectors.

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Who’s Who

Dongwu Securities: Lu Zhe, chief economist at Dongwu Securities, believes that the stabilization of the yuan will lead to a decrease in foreign demand for yuan-denominated bonds as currency hedging incentives diminish. Dongwu Securities also anticipates that China will maintain a structurally loose monetary policy in 2026, utilizing targeted tools to direct funds towards technological innovation and key sectors.

Caitong Securities: Caitong Securities, in a research note, indicated that December might experience favorable liquidity conditions due to increased fiscal spending and reduced government bond issuance. However, they cautioned that renewed bond trading could strain banks' liability management. Additionally, they highlighted the possibility of reserve-requirement cuts or policy rate adjustments in December.

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What Happened When

Late 2024：: PBOC typically bought 100-200 billion yuan in government bonds monthly, peaking at 300 billion yuan in December 2024.

December 2024：: PBOC's net government bond purchases peaked at 300 billion yuan.

October 2025：: PBOC injected 200 billion yuan into the financial system by resuming government bond purchases after a nine-month pause.

November 2025：: PBOC injected a net 50 billion yuan into the financial system through government bond purchases.

November 2025：: PBOC conducted two rounds of pledged bond-style repos, injecting 1.5 trillion yuan; after offsetting 1 trillion yuan in maturing repos, the net addition was 500 billion yuan.