CITIC Securities says the PBOC's Q2 2026 monetary report sets domestic tone as "stable operation, shifting to new and better quality" and flags geopolitical risks and AI on the external front. The report calls for "comprehensive use and timely adjustment of monetary policy tools," indicating a slightly more active policy bias. It urges guiding short-term funding rates to trade around the policy rate and promotes diversification of loan pricing benchmarks to lower financing costs. CITIC concludes

CITIC Securities says the PBOC's Q2 2026 monetary report sets domestic tone as "stable operation, shifting to new and better quality" and flags geopolitical risks and AI on the external front. The report calls for "comprehensive use and timely adjustment of monetary policy tools," indicating a slightly more active policy bias. It urges guiding short-term funding rates to trade around the policy rate and promotes diversification of loan pricing benchmarks to lower financing costs. CITIC concludes the PBOC may continue to increase financial support for the real economy in the next phase.