Between February 5th and 7th, over 2 trillion yuan worth of reverse repos will mature in the open market. Experts have noted that following the Spring Festival, cash will revert to the banking system, making it improbable for funding rates to continue their upward trajectory. Funding flows are anticipated to gradually revert to equilibrium. The People's Bank of China will deploy a flexible range of monetary policy instruments to stabilize market expectations and ensure ample liquidity.
