-
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 PodcastsFixed IncomeFI Markets AnalysisCentral Bank PreviewsFI PiFixed Income Technical AnalysisUS$ Credit Supply PipelineGilt Week AheadGlobal IssuanceEurozoneUKUSDeep DiveGlobal Issuance CalendarsEZ/UK Bond Auction CalendarEZ/UK T-bill Auction CalendarUS Treasury Auction CalendarPolitical RiskMNI Political Risk AnalysisMNI Political Risk - US Daily BriefMNI Political Risk - The week AheadElection Previews -
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
-
Global Macro
Global Macro
Actionable insight on monetary policy, balance sheet and inflation with focus on global issuance. Analysis on key political risk impacting the global markets.
Global MacroDM Central Bank PreviewsDM Central Bank ReviewsEM Central Bank PreviewsEM Central Bank ReviewsBalance Sheet AnalysisData AnalysisEurozone DataUK DataUS DataAPAC DataInflation InsightEmployment InsightGlobal IssuanceEurozoneUKUSDeep DiveGlobal Issuance Calendars EZ/UK Bond Auction Calendar EZ/UK T-bill Auction Calendar US Treasury Auction Calendar Chart Packs -
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, March 8
POLICY: China should not rush to cut its benchmark interest rates, as any
move by the central bank will have a major impact and there is time to take
stock of the economy's overall standing, the president of a local branch of the
People's Bank of China told MNI in an exclusive interview. China's Prime
Minister Li Keqiang said out this week that both quantitative and pricing tools
could be used to lower real rates, but that didn't necessarily mean the central
bank would "cut rates in short-term," said Guo Xinming, president of the PBOC
Nanjing branch.
POLICY: Wang Yi, China's Minister of Foreign Affairs, told reporters Friday
the U.S. intended to suppress China including by having Canada detain the CFO of
Huawei Technologies Co. It is an "intentional political suppression" against
specific Chinese companies and individuals, rather than a simple judicial case,
Wang commented. Wang also believes China and the U.S. won't and shouldn't go to
confrontation, as the interests of the two countries are intertwined.
DATA: China's exports dropped 20.7% y/y in February, worse than -6.5% seen
in the MNI survey forecast. It was the sharpest monthly fall in three years.
Authorities blamed the poor performance on the Chinese New Year holiday, which
shuttered factories and suspended shipments. Exports would have risen 1.5%
discounting the Chinese New Year effect, customs said.
DATA: Imports fell 5.2% y/y in February, following last month's 1.5% y/y
drop, better than -2.0% projected by the MNI survey. Imports would have gained
6.5% less the holiday impact, the customs said.
LIQUIDITY: The PBOC skipped open market operations for the seventh trading
day, which left liquidity unchanged as no reverse repos mature, according to
Wind Information. Total liquidity in the banking system is at a reasonable and
ample level, said the PBOC. The PBOC has net drained CNY260 billion by reverse
repo and CNY104.5 billion by Medium-term Lending Facility for the last seven
trading day, Wind Information said.
RATES: The 7-day weighted average interbank repo rate for depository
institutions (DR007) fell to 2.1000% from Thursday's close of 2.3960%, Wind
Information showed. The overnight repo average decreased to 2.0400% from
Thursday's 2.0583%.
YUAN: The yuan depreciated against the dollar to 6.7269 from Thursday's
close of 6.7074. The PBOC set the dollar-yuan central parity rate weaker at
6.7235, compared with 6.7110 set on Thursday.
BONDS: The yield on 10-year China Government Bond was last at 3.165%, down
2.5 bps from the close of Thursday, according to brokers.
STOCKS: The benchmark Shanghai Composite Index fell 4.40% to 2,969.86,
falling below the 3000 level and marking the largest drop in about five months,
Wind Information said. Hong Kong's Hang Seng Index dropped 1.91% to 28,228.42.
FROM THE PRESS: The National People's Congress, China's senior legislative
body will accelerate the start of drafting property tax laws this year, said
China Youth Daily today citing Li Zhanshu, the chairman of the Standing
Committee of the NPC during the second session of the 13th NPC today.
The People's Bank of China (PBOC) should continue with the structural
deleveraging, mainly in SOEs, and controlling the macro leverage ratio,
Financial News said citing Wang Jingwu, director of the Financial Stability
Bureau of the PBOC. A large inventory of hidden local government debt, rising
risks of bond defaults and the real estate sector are three areas that may fan
instability in the financial industry, Wang was cited as saying.
First-tier cities in China have moved to lower their additional VAT rate on
housing transactions by 50%, The Beijing News reported on Friday. This policy
may have little impact on the market overall, as it only reduces some smaller
taxes, not those major ones including VAT, deed tax and individual income tax in
the property market, the newspaper said citing Zhang Dawei, chief analyst at
Centraline Property Agency.
--MNI Beijing Bureau; +86 (10) 8532-5998; email: wanxia.lin@marketnews.com
[TOPICS: M$A$$$,M$Q$$$,MBQ$$$]
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.