Weekend Highlights: PBOC May Financial Data, 600B Yuan Reverse Repo, New Mutual Fund Rules on Style Drift

Key market-moving news this weekend: PBOC released May financial statistics; PBOC announced a 600 billion yuan outright reverse repo operation for June 15; strict controls on style drift with new mutual fund regulations allowing up to 17 months for compliance transition; US-Iran peace deal signing scheduled for June 14; SpaceX surged over 19% on its debut; US stocks rose across the board; international oil prices fell nearly 4%; New York gold futures rose over 3%.

Macroeconomy

PBOC: Cumulative Social Financing Increment Reaches 17.48 Trillion Yuan in First Five Months; RMB Loans Increase 9.11 Trillion Yuan

Preliminary statistics show that the stock of social financing reached 458.81 trillion yuan at end-May 2026, up 7.7% YoY. Cumulative social financing increment in the first five months was 17.48 trillion yuan, down 1.16 trillion yuan from the same period last year. RMB loans increased by 9.11 trillion yuan in the first five months. Broad money (M2) balance stood at 353.67 trillion yuan at end-May, up 8.6% YoY.

PBOC: 600 Billion Yuan Outright Reverse Repo on June 15

On June 12, the People's Bank of China announced it will conduct a 600 billion yuan outright reverse repo operation on the 15th, with a 6-month tenor (183 days), using fixed-quantity, interest-rate bidding with multiple-price auction. Given that 600 billion yuan of this tenor matures in the month, this operation constitutes a full rollover.

MOFCOM Spokesperson Responds to US Department of Defense Adding Chinese Companies to "Chinese Military Enterprises List"

China expressed strong dissatisfaction and firm opposition to the US Department of Defense adding multiple Chinese companies to the "Chinese Military Enterprises List." The US side disregarded the consensus reached at the Beijing summit between the two heads of state, ignored the broader context of China-US economic and trade relations, and continued to overstretch national security concepts and abuse state power to unreasonably suppress Chinese enterprises. These actions seriously undermine the international economic and trade order, global supply chain stability, and the legitimate rights and interests of Chinese companies.

US Treasury Sanctions Chinese Individuals and Entities for Allegedly Assisting Iran in Purchasing Military Goods; Foreign Ministry Responds

Foreign Ministry spokesperson Lin Jian stated: "We have repeatedly said that China firmly opposes illegal unilateral sanctions that lack basis in international law and authorization from the UN Security Council. We will take necessary measures to safeguard the legitimate rights and interests of Chinese enterprises and individuals."