MNI BRIEF: China Foreign Trade Facing Pressure In Q4

MNI: China CFETS Yuan Index Up 0.98% In Week of Oct 11

MNI: PBOC Net Injects CNY19.5 Bln via OMO Monday

CHINA YTD NEW LOANS CNY16.0 TRLN VS MEDIAN CNY16.3 TRLN: PBOC

CHINA SEP EXPORTS +2.4% Y/Y VS MEDIAN +6.0% Y/Y: CUSTOMS

MNI: PBOC Sets Yuan Parity Lower At 7.0723 Mon; +3.26% Y/Y

MNI: CHINA YTD EXPORTS +6.2% Y/Y IN YUAN TERM: CUSTOMS

MNI BRIEF: China Sep CPI Slows To 0.4% Y/Y On Base Effects

MNI: USDA: 2024/2025 CORN PRODUCTION EST 15.20B BSL

CANADA: Politics Week: Parliament Opens With Early Election Threats

AUSTRALIA: Albanese Lines Up Budget for May Election

AUSTRALIA: Albanese Lines Up Budget for May Election

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

CHINA: Weekend News Disappoints Global Investors.

CHINA
EM BulletAPACChinaEmerging Market NewsBulletGlobalFixed Income BulletsForeign Exchange BulletsRegionMarkets
  • Over the weekend, China’s Ministry of Finance provided guidance as to areas of its focus in the coming months.
  • The Finance Minister Lan Fo’An kept the government’s 5% growth target highlighting local government’s challenges in identifying, financing and executing on development projects that meeting specific criteria set by the Central Government.
  • Local governments had budgeted significant amounts for these projects and official estimates are that only 50% of the budgeted amount has been utilized.
  • Lan provided guidance on available budget headroom for further fiscal stimulus and that his ministry is considering new policies and new policy tools.
  • Additionally, Lan indicated that the Central Government would allow a one-off rise in regional government debt limits to allow local governments to refinance existing debt, similar to the policy implemented in 2015 aimed at bringing on balance sheet the hidden debts so endemic in the system then.
  • Although Lan did not announce new measures for the housing sector, he did reaffirm a desire and intention to continue to stabilize the sector.  He discussed the potential for reducing mortgage costs and a focus on developers delivering pre-sold homes to buyers.
  • Global markets have interpreted this as a disappointing ‘announcement’ from the MOF, with the Hang Seng down 1.5%, whilst onshore equities are modestly higher.
  • What it appears to be is simply a re-attestation of what has been announced thus far and likely points investors focus to the next party meeting. 
229 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
  • Over the weekend, China’s Ministry of Finance provided guidance as to areas of its focus in the coming months.
  • The Finance Minister Lan Fo’An kept the government’s 5% growth target highlighting local government’s challenges in identifying, financing and executing on development projects that meeting specific criteria set by the Central Government.
  • Local governments had budgeted significant amounts for these projects and official estimates are that only 50% of the budgeted amount has been utilized.
  • Lan provided guidance on available budget headroom for further fiscal stimulus and that his ministry is considering new policies and new policy tools.
  • Additionally, Lan indicated that the Central Government would allow a one-off rise in regional government debt limits to allow local governments to refinance existing debt, similar to the policy implemented in 2015 aimed at bringing on balance sheet the hidden debts so endemic in the system then.
  • Although Lan did not announce new measures for the housing sector, he did reaffirm a desire and intention to continue to stabilize the sector.  He discussed the potential for reducing mortgage costs and a focus on developers delivering pre-sold homes to buyers.
  • Global markets have interpreted this as a disappointing ‘announcement’ from the MOF, with the Hang Seng down 1.5%, whilst onshore equities are modestly higher.
  • What it appears to be is simply a re-attestation of what has been announced thus far and likely points investors focus to the next party meeting.