Exclusive interviews with leading policymakers that convey the true policy message that impacts markets.
Reporting on key macro data at the time of release.
Real-time insight on key fixed income and fx markets.
- Emerging MarketsEmerging Markets
Real-time insight of emerging markets in CEMEA, Asia and LatAm region
- MNI ResearchMNI 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
BEIJING (MNI) - EXCLUSIVE: China could bring forward planned issuance of
dollar sovereign bonds to provide borrowing benchmarks for Chinese corporate
borrowers and to take advantage of historically low interest rates, policy
advisors and market participants told MNI. The Ministry of Finance sold a record
USD6 billion in bonds in Hong Kong on Nov. 26, after raising EUR4 billion
earlier in the month, in China's first euro-dominated sovereign issuance since
2004. The Chinese government has raised USD11 billion since it restarted dollar
bond sales in 2017, after a 13-year absence from the market.
TRADE: China is taking steps to exempt some U.S. soybeans, pork and other
unspecified products from tariffs applied in retaliation for the so-called 301
investigation by the U.S., according to a statement issued on Friday on the
website of the Ministry of Finance.
LIQUIDITY: The People's Bank of China (PBOC)injected CNY300 billion via
one-year medium-term lending facility (MLF). The injection was CNY112.5 billion
more than the amount of MLF which matured today, PBOC said. The MLF rate was
kept unchanged at 3.25%. The central bank skipped conducting reverse repos for
the 13th consecutive day, according to a statement on the PBOC website.
RATES: The seven-day weighted average interbank repo rate for depository
institutions (DR007) increased to 2.3671% from Thursday's close of 2.3142%, Wind
Information showed. The overnight repo average rose to 2.0706% from Thursday's
YUAN: The currency strengthened to 7.0340 against the dollar from
Thursday's close of 7.0425. PBOC set the dollar-yuan central parity rate lower
at 7.0383, compared with Thursday's 7.0521. This 138 bps daily gain is the
largest since Nov. 6.
YUAN: The yuan may trade in the range of 7.00 to 7.10 against the U.S.
dollar in December supported by countercyclical policies to reach the growth
target, the China Securities Journal reported citing HY Investment. The currency
is likely to gradually appreciate next year, given improved market sentiment and
economic fundamentals, and with the interest rate spread between China and the
U.S. 10-year government bonds remaining high as both countries are cautious
about monetary easing, the newspaper said citing Ping An Securities.
BONDS: The yield on 10-year China Government Bonds was last at 3.2050%, up
from Thursday's close of 3.1875%, according to Wind Information.
STOCKS: The Shanghai Composite Index gained 0.43% to 2,912.01, helped by
the rally of domestic chip, video game and block chain shares. Hong Kong's Hang
Seng Index rallied 1.03% to 26,487.17.
FROM THE PRESS: The PBOC should balance stable growth, structural reforms
and risk prevention to reduce economic fluctuations, wrote Guan Tao, a former
official at the State Administration of Foreign Exchange in the China Securities
Journal. PBOC should also increase countercyclical adjustments and resolve the
risks in the reform process, avoid zero-interest rates or quantitative easing,
Chinese developers are still able to obtain capital, contrary to media
reports that overstated their financing difficulties, the Securities Daily
reported citing Zhang Dawei, chief analyst at Centaline Property. Dollar bonds
issued by developers will reach a record this year, with 50% increase y/y to $65
billion in the first 11 months, although government quotas limit the increase,
the newspaper said.
--MNI Beijing Bureau; +86 10 8532 5998; email: email@example.com