PBOC to Conduct 300 Billion Yuan Outright Reverse Repo Operation on May 15

The People's Bank of China (PBOC) announced on May 14 that it will conduct a 300 billion yuan outright reverse repo (ORR) operation on May 15, 2026, through a fixed-quantity, interest-rate tender with multiple winning prices. The operation has a 6-month term (184 days) and matures on November 15, 2026 (extended if it falls on a public holiday).

Data shows that 800 billion yuan of 6-month outright reverse repos are due to mature on May 18. Following the PBOC's May 15 operation, net withdrawal from the market will amount to 500 billion yuan.

“In May, 800 billion yuan of 6-month outright reverse repos will mature. After the PBOC's operation on May 15, a net withdrawal of 500 billion yuan will be realized,” said Ming Ming, Chief Economist at CITIC Securities.

Experts noted that the PBOC's policy stance of maintaining ample market liquidity remains unchanged. Going forward, outright reverse repos and Medium-term Lending Facility (MLF) operations are still expected to return to net injection. This also represents a key channel through which monetary policy is supporting government bond issuance and maintaining its accommodative orientation this year.

Looking ahead, monetary policy will be more forward-looking, flexible, and targeted, with greater emphasis on deploying a range of tools to keep liquidity ample, experts added.

PBOC Governor Pan Gongsheng recently stated that the next steps will involve harnessing the combined effect of new and existing policies, strengthening monetary policy management, and calibrating the scale, pace, and timing of policy implementation based on domestic and international economic and financial conditions as well as financial market dynamics. The PBOC will balance short-term and long-term considerations, support real economy growth while maintaining the health of the financial system, and manage both internal and external equilibrium — deploying multiple monetary policy tools to keep liquidity ample.

(Source: People's Bank of China)