Pay attention to the reverse repurchase data of WeChat official account with the same name, which can be directly queried and pushed by statistics every week, which is particularly simple and convenient.
reverse repurchase, refers to the transaction behavior that the financial lender gives the funds to the financial integrator, collects the securities as the pledge, recovers the principal and interest in the future, and releases the pledge of the securities. Reverse repurchase by the central bank refers to the trading behavior that the People's Bank of China buys securities from a primary dealer and agrees to sell them to the primary dealer on a specific date in the future. Reverse repurchase refers to the operation that the central bank puts liquidity into the market, while positive repurchase refers to the operation that the central bank recovers liquidity from the market. The simple explanation is to lend money actively, and the transaction of obtaining bond pledge is called reverse repurchase transaction. At this time, the central bank plays the role of investor and is the lender who accepts bond pledge and lends money.
investors or financial institutions can also conduct reverse repurchase transactions in stock exchanges and inter-bank bond markets.
The original meaning of the central bank's open market reverse repurchase operation is to lend funds to the market and provide funds to market participants, including banks, insurance and other financial institutions, so as to ensure an adequate supply of liquidity. Today, the central bank announced that it would launch 1.2 trillion yuan reverse repurchase operation in the open market on February 3, which was an extraordinary move made during the Spring Festival when the epidemic was rampant, the turmoil in overseas capital markets intensified, and China's stock market was also facing confidence turmoil. In history, the central bank of China has never launched such a huge amount of liquidity in the open market in one day, which is a precedent. It can be seen that the confidence and determination of the management to care for the market will help the people of the whole country unite as one and win the battle against the epidemic!
on February 2, the central bank announced that in order to maintain the reasonable abundance of liquidity in the banking system and the stable operation of the money market in the special period of epidemic prevention and control, the central bank will carry out 1.2 trillion yuan reverse repurchase operation in the open market on February 3 to ensure sufficient liquidity supply. The reverse repurchase operation in the open market is actually "reverse repurchase", so what is reverse repurchase, why reverse repurchase, and what is its role?
1. Definition:
Reverse repurchase refers to the trading behavior that the money lender gives the money to the money acquirer, collects the securities as pledge, recovers the principal and interest in the future, and releases the pledge of the securities. In layman's terms, the central bank invests money in the market, that is, there is more money in the market, which is undoubtedly beneficial to asset prices. More popularly speaking, it is "releasing water".
2. Why reverse repurchase?
as we all know, during the Spring Festival this year, the external market plummeted, and the A5 index also fell a lot. It is expected that our A-shares will also suffer, but how can we stabilize market confidence? In addition to language appeasement, we need something real, and the currency is about to expire, so we invested 1.2 trillion yuan to stabilize market confidence. There is no doubt that it is good for the stock market.
3. What does reverse repurchase have to do with us?
reverse repurchase means that the central bank buys securities, so the central bank will invest money to enter the market; When it comes to reverse repurchase, we must talk about reverse repurchase of government bonds. The so-called reverse repurchase of government bonds is essentially a short-term loan. In other words, individuals lend their own funds through the national debt repurchase market and obtain fixed interest income; The repurchase party, that is, the borrower obtains the loan with his own national debt as collateral, and repays the principal and interest after maturity. Generally speaking, it is to lend money through the national debt repurchase market, which is actually a short-term loan, that is, you lend money to others and get fixed interest; Others use the national debt as collateral to repay the principal and interest at maturity. Reverse repurchase is super safe, which is equivalent to national debt.