$VGT(02476)$ China Policy Watch π¨π³
The latest signals from the PBOC point clearly toward stability with a bias to ease:
β’ Stronger-than-expected daily fixing at 6.8594 β reinforcing currency stability despite oil-driven pressure
β’ RMB 500mn injected via 7-day reverse repo (1.4%) β liquidity remains ample (DR007 steady at 1.40%)
β’ No changes to MLF or LPR β policy patience for now
β’ 10Y CGB yield at 1.757% (down sharply MTD) β markets pricing in further easing
Meanwhile, FX remains tightly managed:
USD/CNH ~6.83 | USD/CNY 6.8680 β stability, not devaluation.
π Takeaway:
China is holding the line on the currency while quietly keeping liquidity supportive. If Q2 data softens, watch closely for a potential RRR cut β thatβs the lever equities will care about next.
#China #PBOC #Macro #Markets #FX #Liquidity
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