-
Policy
Policy
Exclusive interviews with leading policymakers that convey the true policy message that impacts markets.
LATEST FROM POLICY: -
EM Policy
EM Policy
Exclusive interviews with leading policymakers that convey the true policy message that impacts markets.
LATEST FROM EM POLICY: -
G10 Markets
G10 Markets
Real-time insight on key fixed income and fx markets.
Launch MNI Podcasts -
Emerging Markets
Emerging Markets
Real-time insight of emerging markets in CEMEA, Asia and LatAm region
-
Commodities
Commodities
Real-time insight of oil & gas markets
-
Credit
Credit
Real time insight of credit markets
-
Data
-
MNI Research
Actionable insight on monetary policy, balance sheet and inflation with focus on global issuance. Analysis on key political risk impacting the global markets.
-
About Us
To read the full story
Sign up now for free trial access to this content.
Please enter your details below.
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.
Real-time Actionable Insight
Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.
Free AccessMNI China Daily Summary: Friday, December 2
EXCLUSIVE: China’s policymakers must aim for growth of above 5% in 2023 if its long-term growth goals are to be hit, but the success of more stimulatory fiscal and monetary policy in reviving the economy hinges on Beijing’s ability to deliver a more balanced approach to Covid controls, policy advisers and economists said.
POLICY: China’s growth was “slower than expected” but boosting growth is now the priority, People’s Bank of China (PBOC) Governor Yi Gang told a Bank of International Settlements conference. Speaking via video link, Governor Yi said the PBOC will maintain accommodative monetary policy to support growth, citing the recent 25bp cut in the reserve requirement ratio. He said structural policy tools will continued to be used to support agriculture, SME’s and the green transition.
LIQUIDITY: The PBOC injected CNY2 billion via 7-day reverse repos with the rates unchanged at 2.00%. The operation led to a net drain of CNY6 billion after offsetting the maturity of CNY8 billion reverse repos today, according to Wind Information. The operation aims to keep liquidity reasonable and ample, the PBOC said on its website.
RATES: The seven-day weighted average interbank repo rate for depository institutions (DR007) decreased to 1.6189% from 1.6724% on Thursday, Wind Information showed. The overnight repo average fell to 1.1469% from the previous 1.4460%.
YUAN: The currency strengthened to 7.0380 against the dollar from 7.0791 on Thursday. The PBOC set the dollar-yuan central parity rate lower at 7.0542 on Friday, compared with 7.1225 set on Thursday.
BONDS: The yield on 10-year China Government Bonds was last at 2.9050%, up from Thursday's close of 2.8975%, according to Wind Information.
STOCKS: The Shanghai Composite Index edged down 0.29% to 3,156.14 while the CSI300 index lost 0.61% to 3,870.95. The Hang Seng Index decreased by 0.33% to 18,675.35.
FROM THE PRESS: China should aim for an average annual growth rate of 5.5% in the next five years, with consumption, real estate, and the platform economy cited as three areas affecting growth, according to a blog post by China Finance 40 Forum citing Yang Weimin, deputy director of Committee for Economic Affairs of the National Committee of the Chinese People’s Political Consultative Conference. China’s demand stimulus should focus more on boosting consumer spending than expanding investment, with more tax and fee cuts, and financial policies to benefit residents. A new comprehensive and long-term real estate policy should quickly be formulated with multi-department coordination following the recent financial support to the sector. China should also accelerate the introduction of specific measures to support the development of the platform economy to stabilise expectations, said Yang.
China's top policymakers have urged authorities to undertake more targeted Covid control measures, Yicai.com reported following the National Health Commission meetings held by Vice Premier Sun Chunlan over the past two days. Sun said the vaccination rate of the population exceeded 90%, with people’s health awareness having improved significantly and the severity of the Omicron virus having weakened. This has created the conditions for further optimising control measures, she said. Many major cities have started to loosen controls, including Guangzhou, which lifted temporary control areas, and Chongqing, which reopened central districts. Beijing and Zhengzhou have allowed people to skip Covid testing should they have no demand for going outdoors, Yicai said.
The rally in the yuan against the dollar in late November can continue as the outlook for China's economy improves, said Securities Daily citing experts. It said recent yuan resilience reflected improving sentiment following policy changes that optimised epidemic controls, stabilised the property market, and promoted strong domestic fundamentals. Citing experts, the newspaper said the expected December slowdown in Fed rate hikes will weaken the dollar and drive capital inflows into yuan assets. Due to global uncertainties and weakening exports, businesses should use financial derivatives to manage risk, and increase the use of the yuan in foreign trade transactions, the newspaper said.
To read the full story
Sign up now for free trial access to this content.
Please enter your details below.
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.