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Jun 18, 20261
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China Using Overnight Reverse Repos to Guide Policy Rates, Says SAIF Professor
Shanghai Jiaotong University finance professor Zhu Ning told Bloomberg that China's central bank is using overnight reverse repos to manage policy rates and funding stress, while characterizing the country's credit slowdown as a positive shift toward a new growth model.
Quick Facts
Who
Zhu Ning
What
China using overnight reverse repos to guide policy rates
When
June 18, 2026
Where
Shanghai
- China using overnight reverse repos to guide policy rates
- Managing spikes in funding stress
- Credit slowdown occurring
- Economic growth model shifting
- Zhu Ning
Zhu Ning, Professor of Finance at Shanghai Advanced Institute of Finance (SAIF), part of Shanghai Jiaotong University, outlined China's monetary policy approach in remarks at the Lujiazui Forum in Shanghai. According to Ning, the People's Bank of China is employing overnight reverse repurchase agreements as a tool to guide policy rates and manage temporary funding pressures in financial markets.
Ning characterized China's recent credit slowdown as part of a broader economic transition rather than a sign of concern. He emphasized that the country is deliberately shifting its growth model away from credit-driven expansion, suggesting that slower credit growth reflects deliberate policy choices rather than economic weakness. This reframing positions the credit slowdown within China's longer-term structural economic reforms.
The comments, made during an interview with Bloomberg's Minmin Low, provide insight into how Chinese policymakers view current monetary conditions and their approach to managing liquidity in the financial system. Ning's perspective reflects official thinking about balancing growth objectives with financial stability amid economic restructuring.
Why This Matters
Understanding China's monetary policy mechanics and official interpretation of the credit slowdown is critical for investors, policymakers, and financial analysts. Zhu Ning's remarks signal that Beijing views slower credit growth as intentional structural reform rather than crisis, which affects expectations for future policy stimulus, yuan stability, and the trajectory of economic restructuring—key factors for portfolio allocation and business planning in China-exposed markets.
Timeline & Sources
Jun 18, 2026
WireZhu Ning discusses PBOC monetary policy at Lujiazui Forum in Shanghai