China's Central Bank Injects $112 Billion Lifeline, Boosting Market Hope

China's central bank has increased liquidity injection by rolling over maturing medium-term policy loans, while keeping the interest rate unchanged. Market participants expect China to maintain an accommodative monetary stance and potentially implement further stimulus measures, such as interest rate cuts and reserve requirement ratio reductions, to boost the economy. The central bank's loan operation injected a net 800 billion yuan into the banking system in December, the largest monthly increase on record. Analysts predict that the central bank may cut the reserve requirement ratio and policy rate in the coming year to support economic growth and mitigate deflationary pressures.