25.06.202602:05:11UTC+00China Stocks Mixed on PBOC Repo Plans

The Shanghai Composite Index slipped 0.3% to 4,099 on Thursday, while the Shenzhen Component Index rose 1.3% to 16,251, with the two major benchmarks posting a mixed performance after the People’s Bank of China announced a new phase of policy reform featuring overnight reverse repo operations. The central bank said the new tool will be introduced on June 29–30, marking a move toward more flexible liquidity management. The overnight tenor will sit alongside the existing seven-day reverse repo, whose 1.4% rate remains the PBOC’s primary policy benchmark. The decision came on the heels of comments by Governor Pan Gongsheng at the Lujiazui Forum, where he indicated plans to expand the central bank’s use of overnight reverse repos. Financial stocks were under pressure, with notable declines in Industrial and Commercial Bank of China (-1.1%), Agricultural Bank of China (-1.0%), China Construction Bank (-1.3%), and Bank of China (-2.0%).