BOJ: ALTHOUGH FUNDING COSTS ARE ON THE RISE FOLLOWING CHANGES IN THE POLICY INTEREST RATE, OVERALL FUNDING DEMAND REMAINS FIRM

Persistent weakness in China’s housing market will weigh on results from China Vanke Co., Country Garden Holdings Co. and China Overseas Land & Investment Ltd.. Vanke is under scrutiny after seeking to delay a bond payment while considering restructuring. Developers face a ~20% drop in 2026 sales, with headwinds extending into 2027. Major state banks may expand lending 7–8.5%, while pay reforms could cut senior bankers’ bonuses by at least 30%.

CHINA CBANK INJECTS A NET 231.9 BLN YUAN FOR THE WEEK VIA OPEN MARKET OPERATIONS - CALCULATIONS