On November 24th, the People's Bank of China (hereinafter referred to as the "Central Bank") issued a tender announcement for the Medium Term Lending Facility (MLF) for November 2025. According to the announcement, in order to maintain sufficient liquidity in the banking system, on November 25th, the central bank will carry out a 1 trillion yuan MLF operation through fixed quantity, interest rate bidding, and multi price bidding, with a term of 1 year. According to Wind Information data, 900 billion yuan of MLF expired in November. Therefore, after launching the 1 trillion yuan MLF, the central bank will achieve a net investment of 100 billion yuan, which is also the ninth consecutive month that the central bank has increased its MLF volume. In addition, this month the central bank also launched a 1.5 trillion yuan buyout style reverse repurchase, offsetting the maturing 1 trillion yuan buyout style reverse repurchase and achieving a net investment of 500 billion yuan. Overall, the central bank's net liquidity injection in the middle of this month will reach 600 billion yuan, the same scale as in October, maintaining a relatively high level and continuing to demonstrate the central bank's moderately loose monetary policy orientation. Regarding the net injection of medium-term liquidity by the central bank in November, Wang Qing, Chief Macro Analyst of Dongfang Jincheng, believed in an interview with Securities Daily that there are three reasons: firstly, in October, a 500 billion yuan local government debt balance limit will be arranged to resolve existing debt and expand effective investment. This means that an additional 500 billion yuan of local bonds will be issued before the end of the year, and the net financing scale of government bonds in November will increase significantly; Secondly, the launch of 500 billion yuan of new policy financial instruments was completed in October. After driving up the entrusted loans for the month, it will also drive the rapid launch of supporting medium and long-term loans; Thirdly, there was a significant increase in the maturity of interbank certificates of deposit in November. The above factors will to some extent tighten the liquidity of the banking system, and the central bank needs to provide liquidity support, "said Wang Qing. The central bank injects medium-term liquidity into the banking system through MLF and buyout style reverse repurchase, which helps to maintain a relatively stable and abundant funding situation. This can assist in the issuance of government bonds and guide financial institutions to increase their monetary and credit lending efforts. ”Wang Qing stated that the recent large-scale injection of medium-term liquidity into the banking system by the central bank has also signaled the continued strengthening of quantitative policy tools, demonstrating the continued supportive stance of monetary policy and helping to stabilize growth and expectations. The People's Bank of China emphasized in the recently released "Report on the Implementation of China's Monetary Policy for the Third Quarter of 2025" that it is necessary to maintain sufficient liquidity, match the expected targets of economic growth and overall price levels with the scale of social financing and the growth of money supply, and continue to create a suitable monetary and financial environment. Wang Qing expects that the central bank will comprehensively use two policy tools, buyout reverse repurchase and MLF, to continuously inject medium-term liquidity into the market. (New Society)