China’s 10-year government bond yield fell to around 1.68% on Wednesday, hovering near its lowest level since July 2025 as new stimulus measures and stronger purchasing managers’ index (PMI) data fueled expectations of additional economic support. Policymakers introduced mortgage subsidies and expanded central bank funding support, while the State Council (China’s cabinet) pledged to roll out a package of practical and effective additional policies. The economy still faces pressure from weak consumer spending and a prolonged property-sector downturn despite solid exports and support from artificial-intelligence activity. Official data showed the Composite PMI rose to 50.7 in September 2026, the highest since December 2025, with manufacturing increasing to 50.1 from 49.8 and non-manufacturing rising to 50.2 from 49.0. A private survey recorded a Composite PMI of 52.1, while manufacturing climbed to 52.1 from 51.5 and services rose to 51.6 from 51.4.