People's Bank of China to Resume Government Bond Purchases... Signals Easing Monetary Policy

Pan Gongsheng: "Bond Market Operating Smoothly"

China has decided to resume its purchases of government bonds, which had been suspended earlier this year after government bond yields fell and the value of the yuan declined.

On the 27th, China's state-run Xinhua News Agency reported that the People's Bank of China, the country's central bank, announced it would resume government bond purchases in the open market.

Pan Gongsheng, Governor of the People's Bank of China, made this announcement during the opening ceremony of the '2025 Financial Street Forum Annual Conference' held on this day, stating, "The bond market is generally operating smoothly at present."

Governor Pan added, "We will continue to maintain a supportive monetary policy stance, implement an appropriately accommodative monetary policy, and comprehensively utilize various monetary policy tools to provide short-, medium-, and long-term liquidity."

People's Bank of China. Yonhap News.

Previously, in January of this year, the People's Bank of China had announced a temporary suspension of government bond purchases, explaining that demand in the government bond market had exceeded supply.

At that time, as investors favored safe assets, yields on Chinese government bonds reached historic lows. A decline in bond yields means an increase in bond prices. As bond yields fell, the value of the yuan continued to weaken.

On this day, Governor Pan also stated that the crackdown on speculative activities related to virtual currencies would continue. He further added that the development of overseas stablecoins would be closely monitored and assessed.