Article: China's Central Bank Launches Open Market Operation

The People's Bank of China (PBC), the country's central bank, picked up a new monetary tool Tuesday by officially launching the long-awaited open market operation in bonds.

A bank source said that the PBC repurchased from commercial banks a total of 290 million yuan in short-term treasury bonds on the first day of the new business.

Analysts here say that the launching of the open market operation, deemed by many central banks worldwide as an effective monetary tool for conducting indirect financial macro-control, will ...

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