China’s central bank enters treasury bond market with net buy of 100 billion yuan
In highly anticipated move, People’s Bank of China conducts first open-market trade for treasury bonds in nearly two decades
China’s central bank has conducted its first treasury bond trade in nearly two decades in open markets, debuting a long-awaited monetary tool to help manage the domestic bond market and stabilise the economy.
The move follows comments from bank governor Pan Gongsheng over the necessity of “incremental policies” as a means of steadying the national economy during interviews with state media and an address at a recent symposium.
“We must take a supportive monetary policy stance, enhance countercyclical adjustments and increase financial support for the real economy through a variety of policy tools,” Pan said to an audience of economists and heads of state-owned financial institutions.
The conference was held on Monday, but the details of Pan’s speech were only disclosed on the central bank’s website on Thursday.
“The PBOC will study and prepare incremental policies and strengthen coordination of macro policies to consolidate and enhance momentum for economic rebound,” Pan said.
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