The report says that the PBOC is set to "timely replenish" liquidity shortfalls before the holiday period, which will begin on 31 January in China.
This is a rather typical yearly exercise for the Chinese central bank, so don't be too alarmed. It is mainly to ensure that institutions are able to meet funding demands to get through the Lunar New Year smoothly.
The more interesting issue is perhaps whether the PBOC will cut rates on its MLF loans after having done so for the LPR last month here. The latter reaffirms that China is seeing risks to the economy mount but authorities are still wary about loosening conditions too much, having to balance out deleveraging efforts.
