EUR: EUR/USD - Pauses Toward 1.1700 Ahead Of US GDP/PCE & JH

Many cities have introduced housing provident fund loan interest subsidy policies to boost homebuying demand, Securities Daily reported. Dalian offered an interest subsidy for second-home loans approved between July 2026 to Dec 2027, Lianyungang rolled out targeted interest subsidies for low-income, while Suzhou provided a subsidy equal to 50% of the actual interest for eligible young talent, up to CNY50,000 for a period of 12 months. According to the China Index Academy, more than 570 real estate-related policies were introduced across the country in the first half of the year. Among them, more than 310 policies involved housing provident funds.

Authorities should steadily advance consumption tax reform, exploring the feasibility of shifting the collection point for certain eligible consumption tax items to a later stage in the supply chain and assigning the resulting revenue to local governments to enhance their fiscal autonomy, Yicai.com reported citing analysts. The national average local government fiscal self-sufficiency rate was about 50% by 2025, with economically developed regions such as Shanghai, Beijing, Guangdong, and Zhejiang exceeding 70%. As China adopts a tax-sharing system, a significant portion of a city's tax revenue must be remitted to the central government and provinces, driving the fiscal self-sufficiency rate of most cities to less than 100%, but increased transfer payments could help localities achieve a fiscal balance, the newspaper said.

The People’s Bank of China said it would inject a total CNY2.1 trillion of overnight reverse repos between late July and early August to offset month-end liquidity pressure driven by the assessment of regulatory indicators for the banking system, the tax payment peak, and the accelerated issuance of government bonds, Securities Daily reported citing analysts. The injection reflects the PBOC's intention to maintain a dynamic balance of liquidity and to implement precise and effective control by using a flexible instrument with short maturity, rather than a fundamental shift in monetary policy, the newspaper said citing analysts.