The People's Bank of China published financial market data for July showing weaker money market activity alongside increased government and corporate bond financing. Average daily interbank lending fell 24.3% year over year to CNY 323.29 billion, while bond repo turnover declined 14.2% to CNY 6.5 trillion. The monthly weighted average DR001 rate rose 1 basis point to 1.39%, and DR007 fell 2 basis points to 1.43%. Net government bond financing increased by CNY 69.46 billion year over year to CNY 1.32 trillion, while corporate bond financing rose by CNY 178.75 billion to CNY 453.59 billion. Outstanding bonds under custody reached CNY 207.4 trillion, and the 10-year government bond yield ended July at 1.71%. Renminbi derivatives turnover increased 5% year over year to CNY 6.7 trillion, while the renminbi appreciated 0.56% against the U.S. dollar to 6.7476. Equity markets weakened, with the Shanghai Composite Index falling 6.4% and the Shenzhen Component Index dropping 16.2% from June.
2026-08-24Central Bank of the Republic of China
People's Bank of China reports lower money market turnover and higher bond financing in July
The People's Bank of China reported lower interbank lending and bond repo turnover in July, while government and corporate bond financing increased. The 10-year government bond yield ended the month at 1.71%, and renminbi derivatives turnover rose 5% year over year. The renminbi appreciated against the U.S. dollar, while major mainland equity indexes declined.