PBoC injected 182.7 bln yuan via 7-day reverse repos at 1.40%, total amount of bids received 182.7 bln, total amount of bids accepted 182.7 bln

PBoC injected 182.7 bln yuan via 7-day reverse repos at 1.40%, total amount of bids received 182.7 bln, total amount of bids accepted 182.7 bln

The People’s Bank of China (PBOC), the country’s central bank, conducted a 600 billion yuan ($84.13 billion) one-year medium-term lending facility (MLF) operation on Monday. This move aims to maintain ample liquidity in China’s banking system [1]. The operation, conducted using a fixed-quantity, interest-rate-bidding, and multiple-price-bidding method, follows a series of similar operations, indicating a moderately loose monetary policy orientation [1].

The PBOC’s latest MLF operation is significant as it comes just 10 days after a 500 billion yuan outright reverse repo operation on August 15, further demonstrating the central bank’s commitment to supporting the real economy. The operation is expected to result in a net injection of 300 billion yuan, as 300 billion yuan of MLF is due to mature on Tuesday [1].

Meanwhile, Alibaba Group’s U.S. shares have risen by over 10% following the company’s announcement of over 100 billion yuan invested in AI infrastructure and product development over the past four quarters. This investment, part of Alibaba’s broader three-year AI and cloud infrastructure plan, is aimed at boosting global competitiveness through advanced AI and cloud computing technologies [2].

Alibaba’s aggressive AI investments have driven substantial revenue growth, with AI-related revenue growing over 100% year-over-year for seven consecutive quarters in 2024-2025. However, these gains have come at a cost, with free cash flow dropping 76% due to capital expenditures and pricing wars in the cloud sector [2]. Despite these financial strains, Alibaba remains committed to its AI-driven ecosystem, positioning itself to compete globally in cloud computing and AGI development [2].

References:
[1] https://www.manilatimes.net/2025/08/27/business/foreign-business/pboc-conducts-600b-yuan-mlf-operation/2173751
[2] https://www.ainvest.com/news/alibaba-shares-rise-10-executives-report-100-billion-yuan-invested-ai-infrastructure-product-development-quarters-2508/