China: Three things in China

Research evidence excerpt

China: Three things in China

Goldman Sachs China

PBOC’s new tool prevented interbank liquidity from

tightening materially around end-June

Basis point Basis point

160 160

FR007 - 7d OMO spread

120 16-19 avg 120

80 2025 80

40 40

0 0

-40 -40

Jun-15 Jun-20 Jun-25 Jun-30 Jul-05 Jul-10 Jul-15

FR007: the fixing rate of 7-day interbank repo for all financial institutions

Source: Wind, Goldman Sachs Global Investment Research

n Local marketing takeaways: During the last week of June, we met with local clients

in Beijing and Shanghai. Over the past two months, onshore investors’ sentiment

toward domestic economic growth has become more cautious as macro data have

weakened. Expectations for major policy easing remain low, as investors believe

policymakers are prioritizing technological innovation and national security, while

domestic political cycles may be constraining local officials’ ability to boost the

economy. In contrast, we have received more inquiries from overseas clients about

the household consumption outlook in search of investment opportunities amid

depressed valuation.

Recent GS China macro research

Local marketing takeaways and thematic research:

China: What do local clients think about the economy? Local marketing takeaways, June

2026, 30 June 2026

China Matters: All About Tech, 22 June 2026

Asia Economics Analyst: Chinese Household Balance Sheet: Structural Shift from

Property to Financial Assets Amid Ongoing Deleveraging, 17 June 2026

Data comments and trackers:

China Economic Activity and Policy Tracker: July 3, 3 July 2026

AEJ Week Ahead: Inflation around the region, China credit, Taiwan exports, Singapore

GDP, central bank meeting in Malaysia, 3 July 2026

China: Unofficial services PMI fell in June, 3 July 2026