China Weekly Dynamics: Macroeconomic Divergence and PBoC Policy Outlook (June 2026)

Key Takeaways

• 1.Macroeconomic weakness persisted into June with a divergence between weak domestic demand and strong external trade.
• 2.The CNY shows resilience against the USD despite a hawkish Fed, supported by a strong external balance.
• 3.The PBoC is preparing to debut overnight (ON) reverse repos to improve short-term liquidity management.

Table of Contents

• Macro: weakness into June before a likely better H2
• The CNY resists the USD, likely new ON reverse repos
• Asset overview and flows
• Macro: Trade dynamics
• Macro: demand and supply snapshot
• Macro: Prices and inflation
• Macro: monetary and fiscal condition
• FX market: Market dynamics
• FX market: Macro Fundamentals
• FX market: Forwards & options
• Fixed income market: Performance
• Fixed income market: Money market and liquidity
• Fixed income market: Primary market
• Fixed income market: Interbank bond holding
• Calendar
• Emerging Markets Research advanced tools
• Red Mount Analytics

Report data

China asset performance

Reports in this series

China Weekly Dynamics is shown in chronological order through this edition, published on June 22, 2026.

Part of the China Weekly Dynamics series — view all 3 editions

Looking for the latest edition? China Q2 data to show growth moderation (Jul 13, 2026)