China central bank re-launch repo reflects stable yet tightening policy. ANBOUND research team thinks that the central bank is trying to avoid extreme conditions from reoccurring while promote interbank de-leveraging in the open market operation since early of the year. More stringent "shadow banking"regulations are expected but it is still questionable whether it could solve the problem. The governance of shadow banking is beyond the jurisdiction of the central bank and its solution requires deeper financial reform.