The US-China truce was extended only to 10 January, and the People's Bank of China held lending rates for a 16th month while adding CNY200bn net via one-year loans. Beijing is buying certainty by the month and settling nothing.
Every instrument in China's week came with a short fuse. The US-China trade truce now runs only to 10 January, up from a November expiry. The People's Bank of China (PBOC) rolled one-year lending, opened an 11-day repo window and issued a quarterly policy readout that committed to nothing new. Washington and Beijing are each buying certainty in small increments. Neither is paying for a settlement.
