China Tracker

China is managing oil stockpiles amid weakened import demand while the PBoC shifts toward further monetary easing. Market signals suggest potential rate cuts despite the PBoC's efforts to moderate yuan appreciation.

Key Takeaways

• 1.China has protected strategic oil reserves by reducing refinery utilization in response to weaker demand and lower imports linked to the Iran conflict.
• 2.The PBoC's inaugural operation of the O/N RRP signals the likelihood of further policy rate cuts.
• 3.While the PBoC is leaning against yuan appreciation, underlying trade surpluses and flow dynamics are expected to support the currency at the 6.78 forecast level.

Table of Contents

• Recent Developments
• Macroeconomic Tracker
• Forecasts
• Disclaimer
• Methodology

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