PBOC conducted CNY 231.5 bln of 7-day reverse repos today; with no reverse-repo maturities, net injection was CNY 231.5 bln. This week the PBOC supplied CNY 2,265.5 bln of 7-day reverse repos and CNY 500.0 bln of 1-year MLF; maturities totaled CNY 1,935.8 bln of 7-day reverse repos and CNY 300.0 bln of 1-year MLF, yielding an aggregate net injection of CNY 529.7 bln for the week.

CITIC Securities said the dollar index has rallied sharply, driving gold below $4,000/oz, and that easing inflation concerns have not weakened the dollar. Political 're-dollarization' may partly explain the move, but the firm sees expectations of tighter dollar liquidity as the dominant driver. It expects the dollar index to find support this year but for further upside to be difficult to sustain; the next US inflation print could be a catalyst for market re-pricing.

Hong Kong stocks closed lower: the HSI fell 1.76% and the Hang Seng Tech Index dropped 3.41%. Market turnover was HKD 342.1 billion. Biggest sector declines were among newly listed AI names, chipmakers, memory stocks and optical-communications firms; pork, property and gaming-software stocks outperformed. Key movers: Biren Technology (06082.HK) down >16%; Zhipu Technology (02513.HK) and Yangtze Optical Fibre & Cable (06869.HK) down ~13%; Sunny Optical Technology (02382.HK) down >9%; Jinli Permanent Magnet (06680.HK) down >8%; J&T Express (01519.HK) up >4%; Muyuan Foods (02714.HK) up ~4%; NetEase-S (09999.HK) up >3%.