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: The People's Bank of China (PBOC) should expand
the range of collateral it accepts against its lending to include high-rated
corporate debt and a greater range of local government bonds, policy advisors
told MNI, arguing that such a move would boost demand for the securities and
ease financing conditions for regional administrations and companies. China's
highly-indebted local governments are facing difficulty rolling over their
liabilities, including implicit debts such as borrowing by off-balance sheet
financing vehicles, one advisor told MNI, asking to remain anonymous.
EXCLUSIVE: China has little room for further cuts in taxes or fees next
year after about CNY2 trillion in reductions in 2019, government advisors told
MNI, calling instead for reforms to social regulations to help ease the movement
of migrant workers or further monetary policy easing to stimulate demand. "The
scale of tax and fee cuts has been quite large this year, and there has to be a
limit, as the government has to sustain and provide public goods," said Liu
Shijin, a member of PBOC's monetary policy committee.
POLICY: Global multilateral economic frameworks are under challenges
including the distrust between China and the U.S., thus limiting coordinated
effort of central banks to handle possible economic crisis, Zhou Xiaochuan, a
former PBOC governor, told the 10th Caixin Summit today. "It's worrisome" that
the spirit and mechanisms for cooperation among countries are lacking, compared
to the periods following the 2008 financial crisis and the 2011-2012 European
sovereign debt crisis, said Zhou.
DATA: China's Exports fell 0.9% y/y to $212.90 billion in October, an
improvement on last month's 3.2% y/y drop, marking the first bounce in recent
three months. Imports dropped for the sixth straight month by 6.4% y/y to
$170.12 billion, slower than the 8.5% y/y fall recorded in September.
LIQUIDITY: PBOC skipped open market operations for the third day, leaving
liquidity unchanged as no instrument matured, according to Wind Information. The
total liquidity in the banking system is relatively high, PBOC said.
RATES: The seven-day weighted average interbank repo rate for depository
institutions (DR007) rose to 2.4651% from Thursday's close of 2.4557%, Wind
Information showed. The overnight repo average decreased to 1.8974% from
YUAN: The currency weakened to 6.9884 against the dollar from Thursday's
close of 6.9880. PBOC set the dollar-yuan central parity rate higher for a third
day at 6.9945, compared with Thursday's 7.0008.
BONDS: The yield on 10-year China Government Bonds was last at 3.2650%,
down from the close of 3.2675% on Thursday, according to Wind Information.
STOCKS: The Shanghai Composite Index edged down 0.49% to 2,964.18, dampened
by the weakness of agriculture, brokerage and banking stocks. Hong Kong's Hang
Seng Index lost 0.70% to 27,651.14.
FROM THE PRESS: The amount of infrastructure-backed special-purpose bonds
may exceed CNY3 trillion next year, the Securities Daily reported citing Tao
Jin, a senior researcher at Suning Institute of Finance. Some of next year's
issuance will be moved into this year to boost growth, the newspaper cited Tao
China's small and medium-sized banks are likely to increase the issuance of
subordinated bonds, preferred stocks and perpetual bonds to replenish their
capital, the 21st Century Business Herald reported citing analysts.
Shareholders' capital injections and the introduction of external investors may
also help improve capital position of small banks facing tighter regulations on
non-performing loans and requirements to boost lending, the newspaper said.
China's central government has increased fiscal support to some local
governments through transfer payments under next year's quota, the Economic
Daily reported. Included are CNY84.7 billion to ethnic regions, CNY18.43 billion
to border provinces and CNY15.07 billion to counties that have major
contributions to China's revolution. The front-loading of the transfer payments
aims to cover local government spending on the public service, the newspaper
--MNI Beijing Bureau; +86 (10) 8532-5998; email: email@example.com
--MNI Beijing Bureau; +86 10 8532 5998; email: firstname.lastname@example.org