Eight departments issue the "Implementation Plan for Accelerating the Establishment of a Long-term Care Insurance System"; Hong Kong accelerates the development of digital RMB | Financial Morning Briefing

Every journalist｜Zhang Yiming

| March 27, 2026, Friday |

NO.1 Central Bank Conducts 224 Billion Yuan 7-Day Reverse Repo Operation

On March 26, the central bank conducted a 224 billion yuan 7-day reverse repurchase operation, with a bidding amount of 224 billion yuan and a winning amount of 224 billion yuan, at an operation rate of 1.40%.

Commentary: CITIC Securities’ research report suggests that in April, there is a certain liquidity gap due to reasons such as government bond financing, seasonal fluctuations in M0, and an expanded base for reserve requirements. However, what is more concerning is the impact of large amounts of foreign exchange settlements on liquidity. If commercial banks continue to settle foreign exchange, but the central bank does not purchase foreign exchange, the funding situation may face friction, requiring the central bank to use other monetary policy tools to hedge.

NO.2 Eight Departments Issued “Implementation Plan for Accelerating the Establishment of Long-Term Care Insurance System”

On March 26, the National Medical Insurance Administration and seven other departments issued the “Implementation Plan for Accelerating the Establishment of Long-Term Care Insurance System.” Employees participate in long-term care insurance through contributions from both employers and employees, paid together with the basic medical insurance premiums. The rate is reasonably determined based on the national benchmark rate, with the overall rate controlled at around 0.3%, shared equally by employers and individuals, each bearing about 0.15%. The contribution base for employers is the total salary of employees, while the contribution base for individuals is their own salary income.

Commentary: Wang Wenjun, deputy director of the National Medical Insurance Administration, stated: “Long-term care insurance is a new type of social insurance that collects funds through universal participation to provide basic daily care and medical nursing for insured individuals who have lost their normal ability to perform activities, reimbursing the incurred nursing expenses.”

NO.3 Capital Market Adjustment Affects Fourth Quarter Profits, China Life Management: Short-Term Fluctuations Do Not Represent Long-Term Operating Trends

At the annual performance meeting for 2025 held on March 26, China Life’s management stated: “China Life’s profit for the fourth quarter of 2025 is negative, mainly due to structural adjustments in the capital market in the fourth quarter. This fluctuation is mostly temporary and reflects changes in the capital market, not the company’s long-term operating trend.”

Commentary: Li Mingguang, president of China Life, pointed out that most of the investment assets and insurance product liabilities of life insurance companies must be measured at current market value. Changes in market value may be reflected in either the income statement or the balance sheet, and it is normal for net profits and assets to fluctuate with asset prices.

NO.4 Development of Digital Renminbi in Hong Kong Accelerates

On March 25, the Secretary for Financial Services and the Treasury of Hong Kong, Xu Zhengyu, stated in response to legislative councilors’ questions that the central bank and the Hong Kong Monetary Authority are exploring the arrangements and feasibility for upgrading the digital currency wallet to increase its usage limits, expand application scenarios, and enhance user experience. Since the policies and technical details involved still need in-depth discussion, specific plans and timelines are yet to be determined.

Commentary: The rapid development of digital renminbi in Hong Kong demonstrates its competitiveness in the global fintech arena. The collaboration between the central bank and the Hong Kong Monetary Authority to explore upgrading the digital currency wallet is clearly aimed at improving user experience and acceptance, as well as expanding its practical scope. With the increase in the number of wallets and the scale of merchants accepting them, the Hong Kong market is embracing the digital payment era, a trend that may drive more entities towards a digital economy model, challenging traditional payment methods.

NO.5 Spot Gold Drops 2% Intraday

On March 26, spot gold briefly fell by 2% during the day, reporting at 4,415.49 USD/ounce.

Commentary: Huaxi Securities pointed out that the volatility of gold has significantly amplified, and position control must remain strict. The implied volatility of gold has continuously climbed to 35 since last Thursday, at a historically high percentile level of 99.4% since 2009. This is behind gold entering a sharp decline, awaiting a decrease in volatility.

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