Recently, this news has caused a great stir in the traditional financial circles in China!
The central bank made its first appearance in the secondary market to buy government bonds, which is basically equivalent to quantitative easing in financial textbooks. The funds used to buy government bonds are first transferred to the Ministry of Finance, indirectly indicating the severity of current fiscal pressure!
Previously, the way RMB was issued was basically through "foreign exchange deposits," during which the anchor was the US dollar and the euro.
Later, there were measures such as reserve requirement ratio cuts, medium-term lending facilities, and collateralized supplementary loans. The anchor was government bonds.
This time, the central bank directly entered the market and went all in with the purchases!
There's too much to cover here, so I won't go into detail. In summary: the waters are rising rapidly!

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