China Weekly Dynamics: Navigating PBoC Easing and Fiscal Outlook (June 2026)

Key Takeaways

• 1.The PBoC has initiated an overnight reverse repo operation at 1.25%, interpreted as a sign of continued easing rather than an imminent policy rate cut.
• 2.Domestic activity growth is expected to remain soft in June before a gradual H2 improvement as fiscal support scales up.

Table of Contents

• Macro: growth could improve in Q3 after a weak Q2
• CNY still outperforming, PBoC ON reverse repo
• 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

Report data

China asset performance

Reports in this series

China Weekly Dynamics is shown in chronological order through this edition, published on June 29, 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)

1. Jun 22Macro weakness into June