AI Data Insight
The year-on-year growth rate of China's financial institution deposit balance edged up to 7.7% in Q4 2026, a slight acceleration from 7.5% in the previous Q3. Although overall liquidity is abundant, deposits show a significant trend of time deposits, and a large amount of funds has shifted to non-banking financial institutions. This reflects that amid weak credit demand in the real economy, market funds prefer wealth management and capital markets. It remains to be seen whether the PBOC's easing policies can effectively guide funds back into the real sector.