China central bank to inject more liquidity as Golden Week nears

SHANGHAI, Sept 23 (Reuters) - China's central bank said on Wednesday that it would inject up to 1 trillion yuan ($149 billion) per day via short-term liquidity tools around the turn of the month as the Golden Week holiday nears.

The People's Bank of China said in a statement ⁠it would conduct overnight reverse repo operations from September 28 to October 8 "to meet short-term liquidity needs in the banking system".

The bank did not say on which days it would conduct the operations, or disclose the borrowing cost. Liquidity demand typically rises ahead of holidays ⁠in China.

China's interbank bond market will be closed from October 1 to October 7 for the National Day holiday, according to its website. ⁠The interbank market will also be closed from September 25 to September 27 for the Mid-Autumn Festival.

China's ⁠stock market will also be closed for the holidays and will resume trading on ⁠October 8 following the Golden Week, according to exchange websites.

($1 = 6.7049 Chinese yuan renminbi)

Reporting by Shanghai newsroom; Editing by Alex Richardson

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