MNI China Daily Summary: Friday, Nov 8
MNI (MNI(BEIJING)) - DATA: China's outstanding housing mortgage loans fell for a sixth consecutive quarter by end-Q3, as early repayments from property owners continued. The balance of mortgage fell by 2.3% y/y to CNY37.56 trillion, accelerating from the previous 2.1% decline, data by the People’s Bank of China on Friday showed. The outstanding developers’ loans balance increased by 2.7% y/y to CNY13.79 trillion.
LIQUIDITY: The People's Bank of China (PBOC) conducted CNY12.2 billion via 7-day reverse repos, with the rate unchanged at 1.50%. The operation led to a net drain of CNY4.9 billion after offsetting the maturity of CNY17.1 billion today, according to Wind Information.
RATES: The seven-day weighted average interbank repo rate for depository institutions (DR007) increased to 1.6104% from 1.6040% previously, Wind Information showed. The overnight repo average increased to 1.4755% from the previous 1.3273%.
YUAN: The currency weakened to 7.1648 against the dollar from 7.1603 at Thursday's close. The People's Bank of China (PBOC) set the dollar-yuan central parity rate lower at 7.1433 on Friday.
BONDS: The yield on 10-year China Government Bonds was last at 2.1155%, up from Thursday's close of 2.1130%, according to Wind Information.
STOCKS: The Shanghai Composite Index fell 0.53% to 3,452.30, while the CSI300 index was down 1.00% to 4,104.05. The Hang Seng Index decreased 1.07% to 20,728.19.
FROM THE PRESS: China’s exports rose strongly by 12.7% y/y in dollar terms during October driven by a reduction in extreme weather, improvements to shipping and a low-base level from the same period last year, Feng Lin, executive director of the research and development department of Orient Jincheng said. Looking ahead, export performance will remain stable despite trade protectionism and geopolitical conflicts given China’s complete industrial system and a global recovery in electronic product demand, said Zhou Maohua, a macro researcher at Everbright Bank. Imports contracted by 2.3% y/y due to weak domestic demand, cautious import decisions from market entities and a high-base level, Zhou added.
China’s top securities regulator said it will facilitate cross-border investment and financing, expand the scope of investment targets of Stock Connect, optimise the mutual recognition arrangement of funds between the mainland and Hong Kong and support the launch of more cross-border ETF products, China Securities Journal reported citing a speech by Li Ming, vice chairman of the China Securities Regulatory Commission. The CSRC will also expand overseas listing channels, expand the opening of the futures market and further enhance the stability, transparency, and predictability of policies, Li added.
The national corporate sales revenue rose by 1.3 percentage points month-on-month in October, as additional pro-growth policies started to take effect, Economic Daily reported citing the value-added tax invoice data by the State Administration of Taxation. Capital market service revenue grew by 11.1% y/y amid increased stock market transactions last month, a rise of 14.4 pp from September. While second-hand housing sales revenue in Beijing and Shanghai rose by 11% and 12.8% y/y. Meanwhile, retail sales revenue increased by 8% y/y, up 5.4 pp from September.