Central Bank: Will conduct 800 billion yuan of outright reverse repurchase operations; spot gold breaks through $4,700 during trading | Financial Morning Brief

Everyday News editors’ section｜Zhang Yiming

| Tuesday, April 7, 2026 |

NO.1** Central Bank: Will carry out CNY 800 billion buyout-style reverse repo operations**

According to a notice from the central bank, to maintain ample liquidity in the banking system, on April 7, 2026, the People’s Bank of China will conduct CNY 800 billion buyout-style reverse repo operations using fixed amounts, a rate bidding process, and a multi-price approach for successful bids. The maturity is 3 months (89 days), and the due date is July 5, 2026 (if it falls on a holiday, the date will be extended accordingly).

Commentary: In response to this operation, industry experts said that the 3-month buyout-style reverse repo operations are mainly to deal with disruptions caused by seasonal factors. A relatively loose money market environment is the main reason for maintaining the same volume when continuing to roll over. After the Spring Festival, residents’ cash flows back to banks; combined with the concentrated fiscal spending toward period-end, since April, financial institutions have generally had ample funds, and market interest rates have continued to move downward.

NO.2** The first meeting of the China–Canada financial working group held in Beijing

On April 3, the first meeting of the China–Canada financial working group was held in Beijing. The meeting was jointly chaired by Pan Gongsheng, Governor of the People’s Bank of China, and Pengfei Shang, Canada’s Minister of Finance. The China–Canada financial working group was established in January 2026. It provides institutionalized, professional channels for exchanges between China and Canada on topics including financial and monetary policy, financial markets, financial stability and supervision, anti–money laundering, cross-border capital flows, and global financial governance. The convening of the group’s first meeting is one of the important outcomes of the recent high-level interactions between the two countries.

Commentary: At the meeting, both sides’ financial management departments exchanged views on topics such as the global macroeconomic outlook, monetary policy, financial regulation, development of financial markets, global financial governance, and how to respond to the growing level of uncertainty. Both sides of China and Canada agreed that strengthening communication between regulatory authorities and financial institutions helps create a stable and predictable business environment and promotes trade and economic and investment exchanges between the two countries. The two sides recognized that the financial sector plays an important role in promoting economic growth and advancing bilateral trade and investment, and believe that strengthening communication between the two sides’ financial management departments is of positive significance.

NO.3** Spot gold breaks through $4,700 during trading

On April 6, spot gold broke upward through $4,700 per ounce during trading, up 0.66% on the day. Spot silver rose 0.45% to $73.28 per ounce.

Commentary: In the view of industry participants, in the short term, gold is still in a period of consolidation, but in the medium to long term, the major trend of “de-dollarization” will continue, and the factors supporting gold to move higher have not changed.

NO.4** Six major state-owned banks’ mortgage balances continue to decline last year, collectively saying goodbye to the “CNY 6 trillion mortgage asset” era

As of the end of 2025, the personal mortgage balances at China Construction Bank, Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, Postal Savings Bank of China, and Bank of Communications were 5.99 trillion yuan, 5.88 trillion yuan, 4.82 trillion yuan, 3.98 trillion yuan, 2.37 trillion yuan, and 1.4 trillion yuan, respectively, totaling about 24.44 trillion yuan. At the same time, this also means that commercial banks have collectively bid farewell to the “CNY 6 trillion mortgage asset” era.

Commentary: Yang Haiping, a research fellow specially invited by the Beijing Wealth Management Industry Association, said that the real estate sector is still in a period of adjustment. There are many households with genuine demand, but there are also many households taking a wait-and-see approach, so overall growth in mortgage loans has been weak.

NO.5** Two departments jointly deploy a new round of crackdowns on clusters of illegal criminal activity by “black-and-gray industries” in the financial sector

Recently, the Economic Crime Investigation Bureau of the Ministry of Public Security and the Enforcement Bureau of the National Financial Regulatory Administration held a video conference to jointly deploy a new round of crackdowns on clusters of illegal criminal activity by “black-and-gray industries” in the financial sector. This aims to further rectify disorderly practices of illegal financial intermediaries, firmly safeguard financial management order, effectively protect the lawful rights and interests of financial consumers, and strive to provide high-level security support for the high-quality development of finance.

Commentary: The meeting pointed out that the cluster crackdown work should be coordinated with higher standards. On the one hand, through strong criminal enforcement, it is necessary to curb the high-incidence momentum of crimes; on the other hand, it is also necessary to improve financial services, eliminating as much as possible the soil in which “black-and-gray industries” in finance can take root and grow. Building on the prior round of cluster crackdown efforts, it is necessary to further leverage the advantages of the new policing operational model of “professional + mechanisms + big data,” and to raise and upgrade the level of the work.

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