Today the PBOC did not conduct new reverse repos; CNY 1.0 bln of 7-day reverse repos and CNY 1.0 tln of outright reverse-repo maturities led to a CNY 1.001 tln net drain. This week the PBOC injected CNY 18 bln of 7-day reverse repos while CNY 116.5 bln of 7-day maturities and CNY 1.0 tln of outright reverse-repo maturities rolled off, producing a CNY 1.0985 tln weekly net drain.

MOFCOM and other agencies announced retaliatory measures against recent US actions by the Federal Communications Commission and Department of Homeland Security, including tightened export controls on drone-related dual-use items bound for the US and placing six US entities, including Applied DNA Sciences, on a countermeasure list. Beijing said the package is legally grounded and intended to defend national interests; China reaffirmed commitment to stable US-China ties but warned that if the US implements further restrictive measures, it will impose additional countermeasures.

UK Q2 GDP rose 0.4% q/q, matching forecasts and down from 0.6% in Q1; on the year growth was 1.2% y/y versus a 1.1% forecast. June GDP rose 0.3% m/m, beating a flat consensus. Sector detail shows services resilient (June services +0.4% m/m) and business investment stronger than expected (Q2 business investment +1.7% vs -0.5% forecast), while manufacturing and industrial output dragged (June manufacturing -0.5% m/m; industrial -0.2% m/m). The pattern points to services-led resilience and firmer corporate investment rather than broad-based acceleration.