AI Data Insight
China's broad money (M2) YoY growth for Q3 2026 fell to 7.7%, converging further from the previous observation of 8.0% and coming in below the market consensus of 7.9%. Private deleveraging and the drag from the real estate sector have led to a contraction in household credit, with overall funds largely staying in time deposits. The weak data from the real economy is expected to put greater pressure on the People's Bank of China (PBOC) to implement targeted easing and cut the reserve requirement ratio (RRR) in the short term.