China’s central bank to inject $149 billion daily before holidays

China's central bank, the People's Bank of China, has announced plans to inject up to $149 billion daily in short-term liquidity tools as the country prepares for the Golden Week holiday. The bank will conduct overnight reverse repo operations from September 28 to October 8 to ensure adequate liquidity in the banking system during this period. However, the bank has not disclosed the specific days when these operations will take place or the borrowing cost associated with them.

Liquidity demands often rise in China prior to holidays, as financial markets and the banking system adjust for the anticipated slowdown. During this time, China's interbank bond market will be closed from October 1 to October 7, coinciding with the National Day holiday. Additionally, the market will be shut down from September 25 to September 27 to accommodate the Mid-Autumn Festival.

The stock market in China will also be on a holiday schedule and is expected to resume trading on October 8 after the Golden Week celebrations.