With the five-day May Day holiday approaching, the A-share market will be closed. For investors looking to keep their money working during the break, the optimal move is to execute a 1-day reverse repo transaction before 15:30 on April 29 (Wednesday). This strategy can yield interest for six days without interfering with stock trading. Notably, investors who recently opened their brokerage apps to trade "Treasury Bond Reverse Repo" might have noticed the familiar name is gone. There is no need for concern; it has not disappeared but has been renamed to the more standardized "General Bond Reverse Repo," formally known as "General Collateralized Reverse Repo."

According to announcements from the Shanghai, Shenzhen, and Beijing Stock Exchanges, the market will be closed from May 1 (Friday) to May 5 (Tuesday), with trading resuming on May 6 (Wednesday). Additionally, the market will be closed on May 9 (Saturday) for the weekend. The interest calculation rule for General Bond Reverse Repo is "count the start date, not the end date," meaning interest accrues based on the actual number of days from (and including) the initial settlement date to (but excluding) the maturity settlement date. This allows for earning interest over the holiday period with correct timing.

Based solely on the interest accrual period, the best day for this operation is currently April 29 (Wednesday). By conducting a 1-day reverse repo on this day, investors can earn six days of interest. The funds will be available for use on April 30 and withdrawable on May 6. It is important to highlight that April 30 is the last trading day before the holiday. If the reverse repo operation is performed at this time, investors will not earn interest for the holiday period.

Investors should also note that reverse repo rates often drop significantly after 15:00 in the afternoon. While investors can wait until after the market closes to participate in reverse repo to avoid affecting potential stock trades, if there are no promising stock opportunities on the day, they might consider placing their reverse repo order before 14:00 to secure a satisfactory annualized rate.

Despite its formal-sounding name, operating a General Bond Reverse Repo is simpler than trading stocks and only requires a securities account. During trading hours (until 15:30), investors can enter the trading page from the menu and directly click the "General Repo" button to begin. The next steps involve selecting a product, choosing an interest rate, entering the investment amount, and clicking the order button. For most stock investors, participating in 1-day General Repo transactions is sufficient, ensuring funds are available before the market opens on the next trading day without impacting stock operations.

It has been noted that since April, many brokerages have issued notifications stating that the official, standardized name for the business previously known as "Treasury Bond Reverse Repo" has been changed to "General Collateralized Reverse Repo." Industry insiders explain that the old name originated in the early days of the business when treasury bonds were the primary collateral, and it gradually became a common market term. Now, the range of acceptable collateral has significantly expanded to include not only treasury bonds but also local government bonds, policy financial bonds, and certain qualified corporate and enterprise bonds, among others. The original name could mislead investors into thinking only treasury bonds were involved, leading to inaccurate description and insufficient risk disclosure. The new name accurately reflects the expanded scope of the business and helps prevent misleading investors.