Central Bank: The average daily turnover of the two markets in July was 2685.88 billion yuan, down 13.8% month-on-month

The Zhitong Finance App learned that on August 24, the People's Bank of China announced the financial market performance for July 2026. At the end of July, the Shanghai Composite Index closed at 3832.3 points, down 6.4% from the previous month; the Shenzhen Stock Exchange Index closed at 13578.9 points, down 16.2% from the previous month. In July 2026, the average daily turnover of the two markets was 2685.88 billion yuan, a decrease of 13.8% over the previous month. In July, the average daily transaction of interbank lending was 323.29 billion yuan, a year-on-year decrease of 24.3%; the average daily transaction of bond repurchases in the interbank market was 6.5 trillion yuan, a decrease of 14.2% year-on-year. At the end of July 2026, the unexpired balance of interbank loans was 1.0 trillion yuan, and the unexpired balance of interbank market bond repurchases was 9.8 trillion yuan.

The original text is as follows:

Financial market performance in July 2026

I. The operation of the money market

In July 2026, the average daily transaction of interbank lending was 323.29 billion yuan, a year-on-year decrease of 24.3%; the average daily transaction of bond repurchases in the interbank market was 6.5 trillion yuan, a decrease of 14.2% year-on-year. At the end of July 2026, the unexpired balance of interbank loans was 1.0 trillion yuan, and the unexpired balance of interbank market bond repurchases was 9.8 trillion yuan.

In July 2026, the monthly weighted average interest rate for overnight pledged repurchases (DR001) of interest rate bonds between banking sector deposit-type financial institutions was 1.39%, up 1 basis point from month to month; the weighted average interest rate for DR007 was 1.43%, down 2 basis points from month to month; and the monthly weighted average interest rate for overnight pledged repurchases (R001) in the interbank market was 1.42%, which was basically the same from month to month. In July 2026, the average daily interest rate spread between DR001 and the central bank's 7-day reverse repurchase operation interest rate was -1 basis points, and the average daily spread between R001 and DR001 was 3 basis points.

Figure 1 Money Market Interest Rate Trends

Figure 2 DR001 and central bank policy interest rate from January to July 2026

II. Operation of the bond market

In July 2026, net financing of government bonds was 1317.64 billion yuan, an increase of 69.46 billion yuan; net financing of corporate bonds was 453.59 billion yuan, an increase of 178.75 billion yuan over the previous year. At the end of July 2026, the bond market had an escrow balance of 207.4 trillion yuan.

In July 2026, the cash market turnover was 41.4 trillion yuan, a year-on-year decrease of 0.6%; the interbank bond market's cash turnover rate was 19.2%, down 2.8 percentage points from month to month; and the 10-year treasury bond active trading price spread was 0.15 basis points. At the end of July 2026, the yield on 10-year treasury bonds was 1.71%; the yield spread between 10-year and 1-year treasury bonds was 57 basis points, narrowing 4 basis points from month to month; the spread between 3-year AAA medium-term note yield and 3-year treasury bond yield was 40 basis points (not excluding bond tax policy factors), widening 7 basis points from month to month. In the first seven months of 2026, panda bonds totaled 19.53 billion yuan, and 26 additional overseas institutions entered the interbank bond market.

Figure 3 Treasury bond yield trends

Figure 4 Changes in the treasury bond yield curve in July 2026

III. Operation of the derivatives market

In July 2026, the interbank RMB derivatives market turnover was 6.7 trillion yuan, an increase of 5.0% over the previous year. At the end of July 2026, the closing price (average) of the 1-year FR007 swap rate was 1.44%, up 2 basis points from month to month.

In July 2026, the treasury bond futures market turnover was 8.3 trillion yuan, a year-on-year decrease of 2.5%. At the end of July 2026, treasury bond futures holdings were 995,000 lots, an increase of 43.9% over the previous year; the closing price of the main 10-year treasury bond futures contract was 109.4 yuan, up 0.6% from the previous month.

IV. The operation of the bill market

In July 2026, the amount accrued on commercial money orders was 3.9 trillion yuan, and the amount of discount accrued was 3.2 trillion yuan. At the end of July 2026, the commercial money order acceptance balance was RMB 22.1 trillion, up 11.1% year on year; the discount balance was RMB 17.7 trillion, up 13.0% year on year.

5. Operation of the gold market

At the end of July 2026, the Shanghai Gold Exchange Au (T+D) contract closed at 884.6 yuan per gram, up 0.7% from the previous month. In July 2026, the Shanghai Gold Exchange traded 6942.7 tons of gold, an increase of 30.8% year on year; the Shanghai Futures Exchange traded 13,000 tons of gold, a decrease of 6.5% year on year.

6. The operation of the foreign exchange market

At the end of July 2026, the closing price of the RMB exchange rate against the US dollar in the interbank foreign exchange market was 6.7476, up 0.56% from the end of the previous month. The China Foreign Exchange Trading Center (CFETS) RMB Exchange Rate Index was 102.19, down 0.39% from the end of the previous month.

7. Stock Market Operation

At the end of July 2026, the Shanghai Composite Index closed at 3832.3 points, down 6.4% from the previous month; the Shenzhen Stock Exchange Index closed at 13578.9 points, down 16.2% from the previous month. In July 2026, the average daily turnover of the two markets was 2685.88 billion yuan, a decrease of 13.8% over the previous month.

8. The structure of holders in the interbank bond market

At the end of July 2026, there were 3,760 corporate members in the interbank bond market, all financial institutions. Looking at the size of debt holdings, the top 50 investors in corporate credit bonds held 54.2%, mainly in large state-owned commercial banks (proprietary), public funds (asset management), trust companies (asset management), etc.; the top 200 investors held 85.4% of the debt.

In July 2026, in terms of transaction scale, according to statistics from legal entities, the top 50 investors in the interbank bond market accounted for 62.1% of transactions, mainly in securities companies (proprietary), joint-stock commercial banks (proprietary), and fund companies (asset management). The top 200 investors accounted for 92.2% of transactions.

This article was selected from the official website of the “People's Bank of China”; Zhitong Finance Editor: Chen Siyu.