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

Jing Daily Editor-in-Chief｜Zhang Yiming

| Tuesday, April 7, 2026 |

NO.1** People’s Bank of China: Will conduct 800 billion yuan buyout-style reverse repo operations**

According to the PBOC, to maintain ample liquidity in the banking system, on April 7, 2026, the People’s Bank of China will carry out 800 billion yuan buyout-style reverse repo operations using a fixed amount, interest-rate tendering, and a multiple-price-winning approach. The term is 3 months (89 days), and the maturity date is July 5, 2026 (if it falls on a holiday, it will be postponed to the next business day).

Commentary: Regarding this operation, industry experts said that the 3-month buyout-style reverse repo operations are mainly intended to address disruptions from seasonal factors. The current liquidity conditions being relatively loose is the main reason for the smaller reduction and continued rollovers. After the Spring Festival, residents’ cash flows back into banks, and in addition, fiscal spending is concentrated toward the end of the quarter. Since April, financial institutions have generally had ample funds, and market interest rates have continued to fall.

NO.2** First meeting of the China-Canada financial work group held in Beijing

On April 3, the first meeting of the China-Canada financial work 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 work group was established in January 2026 to provide a mechanized and professional channel for exchanges between China and Canada on topics such as 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 recent high-level exchanges between the two countries.

Commentary: At the meeting, both sides’ financial authorities exchanged views on issues including the global macroeconomic situation, monetary policy, financial regulation, development of financial markets, global financial governance, and how to respond to increasingly growing uncertainty. Both the China and Canada sides agree that strengthening exchanges between regulatory bodies and financial institutions helps create a stable and predictable business environment and promotes two countries’ economic and trade exchanges. Both sides recognize that financial departments play 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, up 0.66% during the day. Spot silver rose 0.45% to $73.28 per ounce.

Commentary: In the view of industry participants, in the short term, gold remains in a range-bound trading pattern. But in the medium and long term, the broader trend of “de-dollarization” will continue, and the factors supporting gold’s upside have not changed.

NO.4** The six largest banks’ mortgage balances continue to decline, collectively bidding farewell to the “6 trillion yuan of mortgage assets” era

As of the end of 2025, the personal mortgage balances of 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 approximately 24.44 trillion yuan. At the same time, this also means that commercial banks have collectively left behind the era of “6 trillion yuan of mortgage assets.”

Commentary: Yang Haiping, a research fellow specially invited by the Beijing Wealth Management Industry Association, said that real estate is still in a period of adjustment. There are many households with rigid demand, but there are also many groups that are watching and waiting. Overall, growth in mortgage loans is weak.

NO.5** Two departments jointly deploy a new round of crackdowns on “black and gray” criminal syndicates in the financial sector

Recently, the Economic Crime Investigation Bureau of the Ministry of Public Security and the Inspection Bureau of the National Financial Regulatory Administration held a video conference to jointly deploy a new round of crackdowns on criminal syndicates involving “black and gray” operations in the financial sector, further rectifying the chaos caused by illegal financial intermediaries, resolutely safeguarding financial regulatory and management order, effectively protecting the lawful rights and interests of financial consumers, and striving to support the high-quality development of finance with a high level of security.

Commentary: The meeting stated that the crackdown on syndicates should be coordinated and carried out to higher standards. Not only must strong criminal crackdowns curb the high-incidence momentum of crime, but efforts should also be made to improve financial services and eliminate, to the greatest extent, the soil in which “black and gray” operations in finance can grow. Based on the previous round of crackdown on syndicates, the advantages of the new policing operating model of “professional + mechanisms + big data” should be further leveraged to upgrade and improve the work.

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