China’s interbank lending averages 316.06B yuan a day in August, down 24.6% y/y

Falling interbank lending and repo turnover point to thinner short-term funding activity between banks, even as outstanding repo balances remain large. The contraction matters most for institutions that rely on the interbank market for liquidity management, and it can signal either deleveraging or a shift in how banks fund themselves. Whether the decline in turnover continues, and whether it shows up in funding conditions rather than just volumes, is the open question.