China's financial markets show robust activity in January 2026

China's money market saw robust activity in January 2026, with interbank lending's average daily turnover surging by 84.4 percent year-on-year to RMB493.75 billion.

Bond repos in the interbank market also grew significantly, with average daily turnover increasing by 47.7 percent year-on-year to RMB8.5 trillion.

Key interest rates showed minor fluctuations; DR001, the overnight repo rate, rose by 6 basis points month-on-month to 1.34 percent, while DR007 fell by 1 basis point to 1.51 percent.

The bond market also expanded, with net financing via government-issued bonds increasing by RMB283.13 billion year-on-year.

Enterprise bond issuances raised a net RMB503.26 billion.

By end-January, outstanding bonds in custody reached RMB197.7 trillion, and the yield on 10-year China government bonds stood at 1.81 percent.

Beyond money and bond markets, China's derivatives and stock markets also showed robust performance.

RMB derivatives trading in the interbank markets recorded a total turnover of RMB5.4 trillion, a 39.86 percent increase year-on-year.

CGB futures trading reached RMB6.9 trillion.

The bill market saw commercial drafts accepted and discounted, with outstanding balances rising by 5.4 percent and 10.3 percent year-on-year, respectively.

MSMEs were significant participants, accounting for 71.5 percent of total bill issuance.

In the stock market, both the SSE Composite Index and SZSE Component Index closed higher month-on-month, with average daily turnover on the Shanghai and Shenzhen exchanges increasing by 61.8 percent.