Last half-day operation window, earn 4 days' interest in 1 day! Qingming Festival government bond reverse repurchase is here.

Ask AI · What is the special impact of Qingming holiday closure on reverse repo yields?

Today is a prime opportunity to operate on government bond reverse repos. Combining the Qingming holiday closure schedule of the Shanghai and Shenzhen stock exchanges, buying a 1-day government bond reverse repo today (April 2nd) can accrue interest for 4 days, and the funds can still be used for on-market trading on the last trading day before the holiday (April 3rd).

In terms of specific operations, you only need a stock account to participate. During trading hours (until 3:30 PM on that day), search and click on “Government Bond Reverse Repo” in the trading software menu, select the reverse repo product you want to trade, click “Place Order,” set the interest rate, fill in the investment amount, and then “One-Click Order.”

The source of this yield potential comes from the exchange calculating interest based on the actual number of days the funds are occupied, not the nominal term. The 1-day reverse repo operated today has an interest start date of tomorrow (April 3rd) and matures on April 4th. However, since the Qingming holiday begins on April 4th, the funds need to be deferred until the next trading day (April 7th) before they can be transferred back, resulting in an actual holding period from April 3rd to 6th, totaling 4 calendar days — all of which are counted as interest.

Meanwhile, on April 3rd, this fund remains in a “Available but Unwithdrawable” state, meaning it can be used to buy stocks, funds, and other on-market products, effectively “making two uses of one fund.”

It’s important to note that if you wait until tomorrow (April 3rd) to buy, since the interest start date is T+1, the funds will only start accruing interest on April 7th, and during the entire Qingming holiday, the funds sitting in the account will earn no interest.

Additionally, the interest calculation rule for government bond reverse repos is based on the instantaneous yield at the time of transaction. Once the trade is executed, the yield for that operation is locked in, and subsequent market fluctuations no longer affect the actual yield. Therefore, the actual return investors receive depends entirely on the transaction rate at the time of order placement. Generally, after 3 PM, reverse repo rates tend to drop sharply. If there are no good stock investment opportunities that day, investors may consider placing orders before 2 PM at their desired annualized rate.

(Disclaimer: The content of this article is for reference only and does not constitute investment advice. Investors operate at their own risk.)