PBOC released June financial data yesterday. Shenwan Hongyuan chief economist Zhao Wei said monetary policy will use forward-looking, flexible and targeted liquidity operations—calibrated to domestic and external economic and financial conditions—to

2026-07-16

PBOC released June financial data yesterday. Shenwan Hongyuan chief economist Zhao Wei said monetary policy will use forward-looking, flexible and targeted liquidity operations—calibrated to domestic and external economic and financial conditions—to balance risk control and growth. The central bank has stepped up liquidity: July net outright reverse repo injection CNY 700 bln; end-June MLF net injection CNY 200 bln. If China’s domestic demand recovery remains fragile, fiscal and monetary policy could coordinate measures, including new policy financial instruments, to bolster macro resilience.