China's central bank added ¥1.2tn through an 89-day outright reverse repo as the Shanghai Composite fell 0.8% after the holiday. September PPI is seen near 4.8% with Brent near $104.5, which squeezes factory margins.
PBOC gold buying accelerated through 2026 even as official U.S. Treasury holdings were cut by $66.4 billion, according to a compilation of monthly reserve prints. Source
Mainland markets came back from the National Day holiday on a soft note. The Shanghai Composite closed at 3,811.90, down 0.8%, the Shenzhen Component fell 2.1% to 12,620.9, and in Hong Kong the Hang Seng Tech index dropped 2.9% to 4,073.38, tracking higher US Treasury yields. Compare the reopen on 8 October 2024, when the CSI 300 large-cap index jumped roughly 6% on a stimulus package. This year a policy rate cut and a new mortgage subsidy bought no rally. Investors seem to have priced the announcements already and now want evidence in earnings and credit.
