MNI China Daily Summary: Friday, December 27

     BEIJING (MNI) - LIQUIDITY: The People's Bank of China (PBOC) skipped open

market operations, leaving liquidity unchanged, according to Wind Information.

Liquidity in the banking system is relatively high due to an increase in fiscal

expenditures at the end of the year, PBOC said.

     RATES: The seven-day weighted average interbank repo rate for depository

institutions (DR007) increased to 2.4922% from 2.3472% on Thursday, Wind

Information showed. The overnight repo average increased to 1.0388% from

0.8381%.

     YUAN: The yuan weakened to 6.9992 against the dollar from 6.9984 on

Thursday. PBOC set the dollar-yuan central parity rate higher at 6.9879 from

6.9801.

     BONDS: The yield on 10-year China Government Bonds was last at 3.1550%, up

from 3.1400% on Thursday, according to Wind Information.

     STOCKS: The Shanghai Composite Index lost 0.08% to 3,005.04. Hong Kong's

Heng Seng Index rose 1.3% to 28,225.42. 

     FROM THE PRESS: China will invest CNY2.7 trillion in transportation

infrastructure next year, less than CNY3.21 trillion invested in 2019, the

Economic Information Daily reported. Railway investment will reach CNY800

billion while CNY1.8 trillion will be invested in roads and waterways, the

newspaper said.

     China needs more countercyclical adjustments to its monetary policy to keep

its economy stable in 2020, the Economic Daily said in a commentary. The

government needs to better improve the transmission of interest rate adjustments

to the real economy and further reform to lower businesses' borrowing costs, the

daily said.

--MNI Beijing Bureau; +86 (10) 8532-5998; email: archie.zhang@marketnews.com

--MNI Beijing Bureau; +86 10 8532 5998; email: william.bi@mni-news.com

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