In the last week of 2022, in order to maintain a stable liquidity at the end of the year, the Central Bank continued to carry out large-scale reverse repurchase operations. On December 26, the People's Bank of China announced that it had launched RMB 216 billion of 7-day and 14 day reverse repurchase operations in the form of interest rate bidding. Among them, the 7-day reverse repo was 173 billion yuan, and the 14 day reverse repo was 43 billion yuan. The operating interest rates remained unchanged at 2% and 2.15% respectively. In view of the maturity of RMB 9 billion reverse repurchase on that day, the PBOC realized a net investment of RMB 207 billion in the open market. In fact, the Central Bank has restarted the "7+14" reverse repo portfolio since December 19 to maintain stable liquidity at the end of the year. As of December 23, since December 19, the daily scale of reverse repo operations of the Central Bank has been 85 billion yuan, 146 billion yuan, 160 billion yuan, 157 billion yuan and 205 billion yuan respectively, with a cumulative investment of 753 billion yuan. Over the same period, the maturity of reverse repo reached 49 billion yuan, and the net investment in a single week reached 704 billion yuan. With the massive reverse repurchase by the Central Bank, the funding has turned to easing. According to the data of the National Interbank Funding Center, DR007 (the weighted average interest rate of 7-day repo of deposit institutions in the inter-bank market), an important indicator of liquidity tightness, rose to the highest point in the month of 1.7772% on December 19, and then began to decline to 1.5149% on December 23. However, DR007 rose on December 26. As of 16:30 on December 26, DR007 reported 1.8973%. In this regard, Wang Qing, the chief macro analyst of Dongfang Jincheng, said in an interview with the Securities Daily that the centralized allocation of financial funds at the end of the year, the approaching time of bank assessment and other factors will cause some disturbance to the capital surface. The former will increase market liquidity, while the latter will have a more obvious "pumping" effect. "From the perspective of contacts, DR007 fluctuated violently in the last week of each year, mainly because the demand for short-term liquidity of financial institutions increased significantly at the end of the year, so that the short-term fluctuation of market interest rates intensified." Zhou Maohua, macro researcher of the financial market department of Everbright Bank, told the Securities Daily. It is noteworthy that in the "7+14" reverse repo portfolio last week, the daily 14 day reverse repo launch scale of the Central Bank was higher than the 7-day reverse repo launch scale. On December 26, on the contrary, the scale of 7-day reverse repurchase was significantly higher than that of 14 day reverse repurchase. Wang Qing believes that with a view to maintaining a reasonable and abundant market liquidity and stabilizing market confidence, the Central Bank is expected to intensify its open market operations this week, as in previous years, and continue to implement reverse repurchase operations on a large scale, mainly in a 7-day period, to smooth market interest rate fluctuations. "Due to the recent increase in reverse repo by the Central Bank, the current market is confident in a reasonable and sufficient level of capital, and it is unlikely that the overnight interest rate will rise significantly in the last week of the year end; DR007 may rise seasonally, but the upward range is controllable, in line with the seasonal law." Wang Qing added. It has become the consensus of analysts that the capital is stable for the next year. Zhou Maohua said that there is no special disturbance factor on the short-term capital of the current market, and domestic monetary, fiscal and other policies continue to support economic development