China’s central bank (PBoC) injected CNY 300 bln into financial institutions through a one-year medium-term lending facility (MLF) on February 25, maintaining the rate at 2.0%. This was below the CNY 500 bln in maturing MLF loans, resulting in a net liquidity withdrawal of CNY 200 bln. The PBoC emphasized that the operation aimed to “keep banking system liquidity reasonably ample,” with outstanding MLF loans reaching CNY 4.094 tln. The PBoC has recently shifted focus from the MLF rate to shorter-term tools for guiding market rates.