MNI China Daily Summary: Friday, March 25

LIQUIDITY: The People's Bank of China (PBOC) injected CNY100 billion via 7-day reverse repos with the rates unchanged at 2.10%. The operation has led to a net injection of CNY70 billion after offsetting the maturity of CNY30 billion repos today, according to Wind Information. The operation aims to keep liquidity stable at the end of the month, the PBOC said on its website.

RATES: The seven-day weighted average interbank repo rate for depository institutions (DR007) increased to 2.2160% from the close of 2.0366% on Thursday, Wind Information showed. The overnight repo average fell to 1.9796% from the previous 2.0060%.

YUAN: The currency strengthened to 6.3655 against the dollar from 6.3697 on Thursday. The PBOC set the dollar-yuan central parity rate higher at 6.3739, compared with 6.3640 set on Thursday.

BONDS: The yield on the 10-year China Government Bond was last at 2.8075%, down from 2.8125% of Thursday's close, according to Wind Information.

STOCKS: The Shanghai Composite Index lost 1.17% to 3,212.24, while the CSI300 fell 1.80% to 4,174.57. The Hong Kong's Hang Seng Index tumbled 2.47% to 21,404.88.

FROM THE PRESS: The yuan should be allowed to gain appropriately given that China’s inflation is more stable while other major economies grapple with high inflation and the consequent recession, the 21st Century Business Herald said in an editorial. China can maintain self-sufficiency in agricultural products including grain and fertilizer, although it needs imports of cooking oil and animal feed, it said. China may however be pressured by a global recession, so it should actively improve income distribution and promote the “inner circulation” of its domestic economy, it said.

Chinese Premier Li Keqiang told officials the country must ensure stable grain output this year in the face of grave global situation and surging inflation, Xinhua News Agency said. China has sufficient stockpiles of grain and key agricultural products and supply is ensured, Li said. The government should help businesses deal with rising prices of fertilizer, pesticide and diesel, and it should help companies boost production capacity and diversify import sources for some products, Li said.

Any attempt by the U.S. to prevent China from accessing high-tech products or technology will only result in new disruption to global industrial chains, hurting the interests of companies in the U.S. and the world as well, the Global Times said in an editorial. Intimidating China with economic consequences won’t change China’s stance toward the situation in Ukraine, the newspaper said. Since the U.S. cut Chinese high-tech companies off chip supplies, China has firmly pushed forward with its own development of semiconductor technology, it said.