FINANCE

China Central Bank Net Bought 120 Billion Yuan of Sovereign Bonds in 2025

Published: Jan. 15, 2026 6:19 p.m. GMT+8

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The People’s Bank of China. Photo: VCG

China’s central bank net purchased 120 billion yuan ($17.2 billion) of central government bonds last year, underscoring how Beijing is increasingly using bond market operations to support fiscal borrowing and manage market yields.

The disclosure, made by People’s Bank of China (PBOC) Deputy Governor Zou Lan at a press briefing on Thursday, confirms the scale of the central bank’s bond-buying activity after it revived treasury bond trading in 2024 following a 12-year suspension.

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PBOC net purchased 120 billion yuan ($17.2 billion) in central government bonds in 2024, resuming trading after 12 years.
China issued 16 trillion yuan in central government bonds in 2024, totaling about 40 trillion yuan outstanding by year-end.
Bond operations aim to manage yields and costs as borrowing rises; future trades will adapt to liquidity and yield curve changes.

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People's Bank of China: The People's Bank of China (PBOC) is China's central bank. In the past year, it net purchased 120 billion yuan ($17.2 billion) in central government bonds. This action, confirmed by Deputy Governor Zou Lan, highlights its strategy to support fiscal borrowing and manage market yields. The PBOC resumed treasury bond trading in 2024 after a 12-year suspension, aiming to ensure reasonable issuance costs for government bonds.

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