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 Daily Editor | 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 repo operation, with a bidding amount of 224 billion yuan and a winning amount of 224 billion yuan, at an operation rate of 1.40%.

Comment: According to a report by CITIC Securities, in April, due to government bond financing, seasonal fluctuations in M0, and an expanded base for reserve requirements, there will be a certain liquidity gap. However, what deserves more attention is the impact of substantial foreign exchange settlement on liquidity. If commercial banks continue to settle foreign exchange but the central bank does not purchase foreign exchange, the liquidity 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 with contributions jointly made by employers and employees, paid alongside the basic medical insurance fee. 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 contributing approximately 0.15%. The contribution base for employers is the total salary of employees, while the contribution base for individuals is their salary income.

Comment: Wang Wenjun, deputy director of the National Medical Insurance Administration, stated: “Long-term care insurance is a new type of social insurance that raises funds through universal participation to provide essential living care and medical assistance for insured individuals who have lost normal activity capabilities, reimbursing the incurred care costs.”

NO.3 Capital Market Adjustment Drags Down Fourth Quarter Profit, China Life Management: Short-Term Fluctuations Do Not Represent Long-Term Business 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 during the fourth quarter. This volatility is mostly temporary, reflecting changes in the capital market and does not represent the company’s long-term business trend.”

Comment: Li Mingguang, president of China Life, pointed out that most investment assets and insurance product liabilities of life insurance companies must be measured at current market values. Changes in market value may be reflected in the profit and loss statement or the balance sheet, with net profit and assets fluctuating as asset prices change, which is normal.

NO.4 Development of Digital Renminbi in Hong Kong Accelerates

On March 25, the Secretary for Financial Services and the Treasury in Hong Kong, Xu Zhengyu, stated in response to a legislator’s question that the central bank and the Hong Kong Monetary Authority are exploring the arrangements and feasibility of upgrading the digital currency wallet to increase its usage limit, expand application scenarios, and enhance user experience. Since the related policy and technical details still need in-depth discussion, specific plans and timelines remain to be finalized.

Comment: The rapid development of digital renminbi in Hong Kong demonstrates its competitiveness in the global fintech sector. The collaboration between the central bank and the Hong Kong Monetary Authority to explore upgrading the digital currency wallet clearly aims to enhance user experience and acceptance, expanding its practical scope. As the number of wallets and the scale of merchant acceptance grow, the Hong Kong market is embracing the era of digital payments, a trend that may drive more entities to shift towards a digital economy model, challenging traditional payment methods.

NO.5 Spot Gold Drops 2% Intraday

On March 26, spot gold’s intraday decline once expanded to 2%, reporting at $4,415.49 per ounce.

Comment: Huaxi Securities pointed out that the volatility of gold has significantly increased, and position control must remain strict. The implied volatility of gold has climbed continuously to 35 since last Thursday, reaching a historic high percentile level of 99.4% since 2009. Behind this is gold entering a sharp decline state, awaiting a decrease in volatility.

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