Central Bank: Will conduct 500 billion yuan MLF operations; Zhou Liang, member of the Party Committee and Deputy Director of the National Financial Regulatory Administration, under investigation | Financial Morning Brief

Editor: Zhang Yiming

| March 25, 2026, Wednesday |

NO.1 Central Bank: Will conduct 500 billion MLF operations, with a term of 1 year

On March 24, the central bank announced that to maintain ample liquidity in the banking system, on March 25, 2026, the People’s Bank of China will conduct a 500 billion MLF operation using a fixed quantity, interest rate bidding, and multi-price bidding method, with a term of 1 year.

Commentary: Zhao Yi, fixed income analyst at CITIC Securities, stated that from the perspective of liquidity, the overall liquidity in the market has been loose since this year’s Spring Festival, and the supply and demand of liquidity have generally remained balanced. Since March, several long-term liquidity tools have mainly resulted in net absorption.

NO.2 Deputy Director of the National Financial Regulatory Administration Zhou Liang under investigation

According to CCTV news on March 24, Zhou Liang, a member of the Party Committee and Deputy Director of the National Financial Regulatory Administration, is suspected of serious disciplinary violations and is currently under disciplinary review and supervision investigation by the Central Commission for Discipline Inspection and the National Supervisory Commission.

NO.3 A-share banking sector fluctuates upward

On March 24, the A-share banking sector fluctuated upward. Qingdao Bank rose over 4%, Jiangsu Bank, Shanghai Rural Commercial Bank, Nanjing Bank, and Shanghai Bank rose over 3%, while CITIC Bank and Ping An Bank also followed suit.

Commentary: Guolian Minsheng Securities believes that in the long term, listed banks have stable performance and low valuations, and they are optimistic about the long-term excess returns of the entire sector. In the medium term, with increased economic uncertainty due to external shocks, market sentiment is expected to shift towards risk aversion. The banking sector, which has seen significant declines due to passive capital outflows, will enter a phase of both absolute and relative returns, and high-quality banks with solid fundamentals will have further room for valuation improvement.

NO.4 Gold prices retreat, number of customers in jewelry stores in India surges

According to CCTV Finance, international gold prices have significantly declined in the past two weeks. On the 23rd, the gold futures price on the New York Commodity Exchange and the spot gold price in London both fell below $4,200 per ounce, erasing all gains for the year. In India, as retail gold prices have retreated, the number of customers in jewelry stores has surged in many areas. Data shows that the current price of 24K gold in India is around 13,000 rupees per gram, approximately 960 yuan. Industry insiders pointed out that many jewelry stores in India have recently experienced a bustling scene again.

Commentary: The retreat in gold prices has sparked a consumption boom in the Indian jewelry market, demonstrating the impact of price fluctuations on consumer behavior. For investors, changes in gold prices signify adjustments in market risk aversion sentiment and may also reflect uncertainties in global economic trends.

NO.5 Cash dividend wave surges in A-shares

According to Shanghai Securities News, as the annual reports for 2025 are densely released, listed companies are also distributing “red envelopes.” According to incomplete statistics, as of March 22, a total of 122 companies in the Shanghai market disclosed their 2025 annual reports, of which 101 companies announced dividend plans, accounting for over 80%. Among them, 70 main board companies announced dividend plans with a total expected payout of 76.524 billion yuan; 31 Sci-Tech Innovation Board companies announced dividends, with a total expected payout of 3.788 billion yuan.

Commentary: The surge in cash dividends in the A-share market reflects the proactive attitude of listed companies in rewarding investors. This trend not only enhances shareholder investment returns but also reflects the overall stability and improvement of the economy, which helps to enhance the attractiveness of the A-share market. Large-scale cash dividends will drive market liquidity while incentivizing company management to optimize operational strategies.

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