--- title: "The central bank conducted a 20.5 billion yuan 7-day reverse repurchase agreement, institutions: the probability of liquidity tightening is limited! Short-term adjustments by banks do not change the value of allocation" type: "News" locale: "en" url: "https://longbridge.com/en/news/279538839.md" description: "On March 18, 2026, the People's Bank of China conducted a 20.5 billion yuan 7-day reverse repurchase operation, achieving a net withdrawal of 6 billion yuan today. Huafu Securities believes that the probability of the central bank tightening liquidity in the short term is limited, and the DR001 interest rate will remain in the range of 1.3% to 1.35%. China Galaxy pointed out that proactive fiscal policies and a stable interest margin orientation will support performance, making the banking sector allocation window worth paying attention to. The CSI Bank Index fell by 0.71%, and market analysis suggests that considering buying on dips after a short-term adjustment is worthwhile" datetime: "2026-03-18T05:38:15.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/279538839.md) - [en](https://longbridge.com/en/news/279538839.md) - [zh-HK](https://longbridge.com/zh-HK/news/279538839.md) --- # The central bank conducted a 20.5 billion yuan 7-day reverse repurchase agreement, institutions: the probability of liquidity tightening is limited! Short-term adjustments by banks do not change the value of allocation On March 18, 2026, the People's Bank of China conducted a 20.5 billion yuan 7-day reverse repurchase operation through a fixed rate and quantity bidding method. Today, 26.5 billion yuan of 7-day reverse repos are maturing, resulting in a net withdrawal of 6 billion yuan. Huafu Securities believes that the probability of the central bank tightening liquidity in the short term is relatively limited. The reduction in 3-month and 6-month term reverse repos may still be due to cash inflows and fiscal spending. The DR001 (interbank pledged repo rate) is likely to remain in the range of 1.3% to 1.35%. China Galaxy believes that the current fiscal policy is proactive, and the monetary policy continues to maintain a stable interest rate spread, which supports performance and is favorable for valuation recovery. The bank sector allocation window is worth paying attention to. As of 13:15 on March 18, 2026, the CSI Bank Index (399986) fell by 0.71%. Among the constituent stocks, CITIC Bank rose by 0.38%, Agricultural Bank of China increased by 0.15%, and Bank of China remained unchanged at 0.00%; Ningbo Bank led the decline with a drop of 2.97%, Xi'an Bank fell by 2.12%, and Jiangyin Bank decreased by 1.91%. The Bank ETF Huaxia (515020) fell by 0.70%, with the latest quote at 1.7 yuan. Market analysts believe that although the CSI Bank Index ended a 6-day rise today, short-term adjustments may present buying opportunities on dips. The Bank ETF Huaxia (515020) is the ETF with the lowest comprehensive fee rate tracking the CSI Bank Index (399986), with its Class A fund 008298; Class C fund 008299; Class D fund 024642. Daily Economic News ### Related Stocks - [516310.CN](https://longbridge.com/en/quote/516310.CN.md) - [512700.CN](https://longbridge.com/en/quote/512700.CN.md) - [512820.CN](https://longbridge.com/en/quote/512820.CN.md) - [515290.CN](https://longbridge.com/en/quote/515290.CN.md) - [515020.CN](https://longbridge.com/en/quote/515020.CN.md) - [399986.CN](https://longbridge.com/en/quote/399986.CN.md) - [512800.CN](https://longbridge.com/en/quote/512800.CN.md) ## Related News & Research - [Bank of China issues RMB 40 billion TLAC-eligible non-capital bonds due 2026](https://longbridge.com/en/news/287185667.md) - [HSBC tells workers not to resist AI changes](https://longbridge.com/en/news/287094017.md) - [Hogs Look to Tuesday Trade](https://longbridge.com/en/news/286913138.md) - [ZAWYA: Sohar International recognized as Best Bank in Oman and Best Digital Bank of the Year awards](https://longbridge.com/en/news/286903125.md) - [ZAWYA: Ahlibank strengthens corporate and digital banking leadership with dual industry honours](https://longbridge.com/en/news/287154061.md)