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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.
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Free AccessMNI China Daily Summary: Friday, May 15
EXCLUSIVE: A consensus is forming among Chinese officials that the country
requires economic growth of about 3% in 2020, although in a departure from usual
practice, a formal target may not be announced at next week's National People's
Congress, policy advisors told MNI, following speculation the government might
forego a GDP objective altogether due to global coronavirus disruption.
POLICY: China's economy has not yet returned to levels seen in previous
years, despite April's economic indicators showing a pick up from March levels,
said Liu Aihua, a spokeswoman for the National Bureau of Statistics Friday.
LIQUIDITY: The People's Bank of China (PBOC) injected CNY100 billion via
one-year medium-term lending facility (MLF) on Friday with the rate unchanged at
2.95%. The cut to selected banks' reserve requirement ratios by 0.5 percentage
point announced in April also took effect today, releasing CNY200 billion
long-term funds. These operations injected net CNY300 billion as no MLF matures
today.
DATA:
-Industrial production grew 3.9% y/y in April, reversing the 1.1% lost in March
and outpacing the projected 1.8% gain.
- Retail sales fell 7.5% y/y, recovering from the 15.8% slump in March.
- Fixed-asset Investment dropped -10.3% in the first four months, picking up
moderately from the -16.1% decline in Q1 but weaker than the -9.7% projection.
- Infrastructure investment growth recovered to -11.8% y/y in the Jan-April
period from the -19.7% plunge in Q1.
- Registered urban unemployment rose to 6.0% in April from March's 5.9%.
RATES: The seven-day weighted average interbank repo rate for depository
institutions (DR007) decreased to 1.1500% from Thursday's close 1.3179%, Wind
Information showed. Overnight repo average rose to 0.8590% from 0.7398%
yesterday.
YUAN: The yuan weakened to 7.0995 against the dollar from Thursday's close
7.0948. PBOC set the dollar-yuan central parity rate lower at 7.0936, down from
the 7.0948 set on Tuesday.
BONDS: The yield on 10-year China Government Bonds was last at 2.5289%,
down from Thursday's close of 2.5300%, according to Wind Information.
STOCKS: The Shanghai Composite Index lost 0.07% to 2,868.46. Hong Kong's
Hang Seng Index lost 0.14% to 23797.47.
FROM THE PRESS: China does not believe that Washington will "cut off the
whole relationship" as U.S. President Trump suggested in an interview on
Thursday, according to the Communist Party tabloid Global Times. In an
editorial, the newspaper said it was "no surprise to hear more absurd ideas from
Trump" in the run-up to the U.S. presidential election. However, the Times
warned that China should be prepared for "a partial or complete decoupling" in
some sectors, including technology.
China will step up pandemic prevention measures in Heilongjiang and Jilin
provinces in the northeast with more cases of Covid-19, according to a statement
from the Politburo Standing Committee. A statement from the committee, chaired
by President Xi Jinping, also required Wuhan, the epicentre of the pandemic in
China that also saw new cluster cases, to increase testing. Xi also said the
government would promote the retailing and life service industries to normal
levels.
China will add more domestic banks to the list of systemically important
banks (D-SIBs), a move which will see them subject to increased regulations,
according to Cao Yu, a vice chairman of the China Banking and Insurance
Regulatory Commission (CBIRC). In a commentary published in the China Banking
and Insurance News, a media outlet affiliated with the regulator, Cao said that
196 regional Chinese banks are among the Top 1000 in the world according to
their Tier-1 capital levels, a hint that they should be treated as D-SIBs. China
currently requires banks on this list to have additional capital equal to 1% of
risk-weighted assets.
--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
[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.