- G10 Markets
- Fixed Income
- Foreign Exchange
- Emerging Markets
- MNI Research
- Global Macro
- Political Risk
- About Us
Exclusive interviews with leading policymakers that convey the true policy message that impacts markets.LATEST FROM POLICY:
- G10 MarketsG10 Markets
Real-time insight on key fixed income and fx markets.Launch MNI PodcastsFixed Income FI Market AnalysisCentral Bank PreviewsFI PiEurozone/UK Bond Auction CalendarEurozone/UK T-bill Auction CalendarUS Treasury Auction Calendar US$ Credit Supply Pipeline Fixed Income Technical Analysis EGB Issuance, Redemption and Cash Flow Matrix Gilt Week Ahead
- Emerging MarketsEmerging Markets
Real-time insight of emerging markets in CEMEA, Asia and LatAm region
Real-time insight of oil & gas markets
Reporting on key macro data at the time of release.LATEST FROM DATA:
- 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.Global Macro Central Bank PreviewsCentral Bank ReviewsBalance Sheet AnalysisInflation InsightGlobal IssuanceEurozoneUKUSOverviewGlobal Issuance CalendarsEZ/UK Bond Auction CalendarEZ/UK T-bill Auction CalendarUS Treasury Auction Calendar
- About Us
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 Access
MNI: PBOC Yuan Parity Higher At 7.1280 Thursday; -6.21% Y/Y
MNI China Daily Summary: Monday, February 27
LIQUIDITY: The People's Bank of China (PBOC) conducted CNY336 billion of operations via 7-day reverse repos, with the rates unchanged at 2.00%. The operation led to a net injection of CNY66 billion after offsetting the maturity of CNY270 billion reverse repos today, according to Wind Information. The operation aims to keep banking system liquidity stable towards the end of month, the PBOC said on its website.
RATES: The seven-day weighted average interbank repo rate for depository institutions (DR007) increased to 2.2946% from 2.2584% on Friday, Wind Information showed. The overnight repo average was up to 1.8317% from the previous 1.4396%.
YUAN: The currency weakened to 6.9645 against the dollar from 6.9442 on Friday. The PBOC set the dollar-yuan central parity rate higher at 6.9572, compared with 6.8942 set on Friday.
BONDS: The yield on 10-year China Government Bond was last at 2.9175%, down from Friday's close of 2.9190%, according to Wind Information.
STOCKS: The Shanghai Composite Index decreased 0.28% to 3,258.03, while the CSI300 index was down 0.42% to 4,042.84. The Hang Seng Index edged down 0.33% to 19,943.51.
FROM THE PRESS: China’s pension coverage faces tough challenges due to inadequate coverage for its large and aging population, Zhou Xiaochuan, Former People’s Bank of China (PBOC) governor, said in a recent speech. Speaking at the Global Wealth Management Forum, Zhou noted China’s pre-funded pension funds amounted to less than 10% of GDP compared to some countries at 50% to 100%. The issue could be addressed by reforms to the income tax system, increasing incentives for joint enterprise/employee contribution schemes, and potentially converting equity of state-owned companies into pension funds.
Financing channels for real estate leasing companies will be widened to increase the amount of bonds being issued, according to draft proposals released by the People's Bank of China and the China Banking and Insurance Regulatory Commission. The measures will broaden the financing channels by allowing firms to raise capital via a variety of innovative financial tools that suits the large scale and long payback characteristics of the industry. The proposal will allow firms to use mortgages on their balance sheet as a credit enhancement to issue guaranteed bonds.
The economy will rebound in 2023 as epidemic prevention is relaxed and consumption improves, according to the PBOC. In its Q4 2022 monetary report, the central bank said this year's monetary policy should be precise and strong, and not only focus on supporting the expansion of domestic demand, but also take into account longer term economic growth and price stability. Authorities will adhere to a managed floating exchange rate system based on market supply and demand, and guide funds into areas such as inclusive finance, technological innovation, and green development, the report said.
To read the full story
Sign up now for free access to this content.
Please enter your details below and select your areas of interest.
Why Subscribe to
MNI is the leading providerof 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.