PBOC

Geopolitics Macro

China’s monetary gambit: record easing meets $1 trillion capital flight

PBOC holds rates at historic lows for 12 months while bond yields compress to 1.74%, but massive outflows and carry-trade risks expose the limits of stimulus without structural reform.

8 min read ·
Geopolitics Macro

China Embeds Digital Yuan in Government Spending as De-Dollarization Infrastructure Takes Shape

PBOC directives push e-CNY through lottery incentives and fiscal integration while mBridge transaction volume surges 2,500-fold, building parallel settlement rails that bypass dollar systems.

8 min read ·
Macro Markets

PBOC Orders Banks to Frontload Lending as Credit Contraction Triggers Policy Pivot

Directive signals systemic risk concerns amid property collapse, youth unemployment near 17%, and industrial output at three-year lows.

6 min read ·
Geopolitics Macro

China’s Rate Trap: Record-Low LPR Fails to Revive Demand as Trade Surplus Hits $1 Trillion

Beijing holds benchmark lending rates at historic lows for 12th consecutive month as structural deflation forces reliance on exports over consumption, setting up global spillover through commodity cycles and capital flows.

9 min read ·
Macro Markets

China Drains $129 Billion in Rare Liquidity Pullback as Oil Shock Tests Inflation Tolerance

Beijing's March liquidity withdrawal marks a sharp divergence from Western easing, prioritising currency stability and inflation control over growth support as geopolitical commodity shocks fragment global monetary policy.

7 min read ·
Macro

China Commits to Easing Cycle as Property Crisis Forces Monetary Divergence

PBOC signals explicit support for RRR and rate cuts in 2026, departing from Western tightening as domestic demand crisis deepens.

7 min read ·
Macro

China’s Private Sector Factory Surge Hits Five-Year High as Divergence With Official Data Widens

Caixin PMI jumps to 52.1 in February, fastest expansion since December 2020, while state data shows contraction—a split that complicates PBOC policy calculus and signals uneven recovery.

7 min read ·