Weekly Wrap: Stable LPR, Tighter Audits, and record A-share margin financing

Research evidence excerpt

Weekly Wrap: Stable LPR, Tighter Audits, and record A-share margin financing

BOC law

revision and draft financial law were submitted for first reading, strengthening central

Wenqing Han, CFA >>

bank governance and financial rule of law. Liquidity: NCD issuance hit a YTD high of Research Analyst

RMB1.2tn in one week, and June net financing turned positive. The PBOC conducted Merrill+852 3508Lynch5032(Hong Kong)

RMB500bn of MLF on June 25, implying RMB200bn of net MLF injection in June, wenqing.han@bofa.com

although medium-term liquidity operations were still down RMB100bn for the month. A- Winnie Wu >>

share: A-share margin trading balance topped RMB3tn for the first time; SZSE is set for ResearchMerrill LynchAnalyst(Hong Kong)

its largest-ever IPO at RMB24.5bn, and the SSE launched its “quality, efficiency and +852 3508 3058

returns” 2.0 initiative with more quantifiable metrics. Financials: Regulation tightened winnie.wu@bofa.com

on assisted lending, wealth products, precious metals, AI and bank compliance, with EmmaResearchXuAnalyst>>

assisted-loan growth capped below self-operated loan growth, consumer-loan KPIs Merrill Lynch (Hong Kong)

+852 3508 8165

shifting toward quality, precious-metals margins up to 140%, and more bank fines. SAFE emma.xu@bofa.com

reported that China banks’ external assets and liabilities rose 6.63% and 5.25% QoQ to

USD2.1tn and USD1.5tn, respectively. Cross-border channels cooled as regulators halted

new equity-linked cross-border TRS business at brokerages and QDII funds continued to

LGFV: Local Government Financing Vehicle

cut subscription limits. Property: Qiushi again urged faster household balance-sheet

LPR: Loan Prime Rate

repair and property-market stabilization. Dragon Boat housing sales showed some