The People's Bank of China announced on August 12 that it will conduct overnight reverse repo operations on August 14 and from August 17 to August 19, aiming to better align with the short-term liquidity needs of the banking system. The operations will use a fixed interest rate and quantity-based bidding, with a daily cap of 600 billion yuan.

At the end of June, the central bank added the overnight reverse repo as a new tool in its open market operations, with the goal of further refining the interest rate control mechanism and enriching the range of instrument maturities. Overnight reverse repo operations can serve a "smoothing" function during specific periods, helping to improve liquidity management efficiency and reduce costs for financial institutions.