PBOC Conducts 39.5 Billion Yuan 7-Day Reverse Repo Operation; Shanghai Launches Equity Trust Property Registration Pilot | Financial Morning Brief

Everyday Editor | Zhang Yiming

| Wednesday, March 11, 2026 |

NO.1 The Central Bank Conducts 39.5 Billion Yuan 7-Day Reverse Repo Operation

On March 10, the Central Bank conducted a 39.5 billion yuan 7-day reverse repo operation, with an interest rate of 1.40%, unchanged from previous. Due to 34.3 billion yuan of reverse repos maturing that day, the open market achieved a net injection of 5.2 billion yuan.

Comment: The China Construction Bank Financial Markets Department stated that the expected central tendency of funding rates will remain basically stable. On one hand, government bond net financing is expected to be -160 billion yuan, with the tax period not yet here, and limited maturing scale in the open market, resulting in insufficient upward pressure on interest rates. On the other hand, after the central bank withdrew large liquidity in the past two weeks, overnight funding rates have been rising since last Thursday, and DR007 has fallen to near the 7-day reverse repo rate, leaving limited room for further decline in funding rates.

NO.2 The RMB/USD Central Parity Rate Rises by 176 Basis Points

On March 10, the RMB against the USD central parity rate was 6.8982, up 176 basis points. The previous trading day’s central parity was 6.9158, onshore RMB closed at 6.9183 at 16:30, and the night session closed at 6.9085.

Comment: Since the end of last year, the RMB/USD exchange rate has entered a continuous appreciation trend, with the pace accelerating. Onshore and offshore RMB once broke through the 6.90 mark, becoming a key focus in the foreign exchange market. The ongoing strength of the RMB is the result of multiple internal and external factors working together.

NO.3 300 Billion Yuan Special National Bonds to Be Issued, ICBC Expected to Receive a Higher Share of Capital Injection

According to Shanghai Securities News, the second round of state-owned major banks’ capital injection plan is expected to start soon. The government work report proposes issuing 300 billion yuan in special national bonds to support large state-owned commercial banks’ capital replenishment. Market consensus suggests that ICBC and Agricultural Bank of China will be the main recipients of this round of capital injection. Regarding scale distribution, Zeng Gang, chief expert and director of the Shanghai Financial and Development Laboratory, analyzed in an interview that this round targets only two banks, with a more concentrated split of the 300 billion yuan. ICBC is expected to receive a larger proportion, estimated between 150 billion and 200 billion yuan, while ABC may receive between 100 billion and 150 billion yuan, depending on the “one bank, one policy” plan.

Comment: The issuance of special national bonds and the planned capital injections indicate the government’s active support for the stability and development of the financial system. This move aims to enhance the capital strength of large state-owned banks and improve their risk resistance. Market optimism exists regarding the potential adjustment of injection proportions for ICBC and ABC, expecting to improve resource allocation efficiency among institutions.

NO.4 Shanghai Launches Pilot Registration of Equity Trust Property

Shanghai Financial Official WeChat announced that the Office of the Financial Committee of the Shanghai Municipal Party Committee and other agencies jointly issued the “Notice on Launching the Pilot Registration of Equity Trust Property.” The equity referred to includes equity held by domestic entities in limited liability companies and founders’ shares of non-listed joint-stock companies; the equity trust refers to entrusting the trustee with legally owned equity, or entrusting the trust institution to invest in shares, whereby the trust institution manages, utilizes, and disposes of the equity in accordance with the entrustor’s wishes, in the name of the trustee, for the benefit of the beneficiaries or specific purposes.

Comment: The launch of the Shanghai equity trust property registration pilot marks an important step in advancing trust market development and signifies further standardization of China’s trust industry. This innovation will facilitate more capital to be effectively allocated through trust channels, helping improve corporate financing capacity and market transparency.

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