CITIC Securities says the current easing is mainly deposit-driven — a
“self‑generated” easing: FX settlement inflows and household deposit shifts have
boosted non‑bank deposits and loosened liquidity, while weaker corporate lending
has left liquidity pooling in the interbank market. It expects deposit growth to
continue outpacing loan growth and, with the PBOC conducting moderate liquidity
management, overall funding is likely to remain relatively loose.
