PBOC to Resume Open Market Government Bond Trading

Governor Pan Gongsheng says the move will strengthen monetary policy transmission and help stabilize China’s financial markets.

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Terms & Concepts
  • Open Market Operations: Activities by a central bank involving the buying or selling of government securities to regulate liquidity and influence interest rates.
  • Monetary Policy Transmission: The process through which central bank policy actions affect the broader economy, including output, prices, and employment.
  • Government Bonds: Debt securities issued by a government to support public spending, often considered low-risk investments.