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
POLICY: China's core concerns in the ongoing trade conflicts with the U.S.
remain unchanged after a constructive Nov 1 phone call between chief negotiators
from both sides, Taoran Notes, a blog associated with the Economic Daily, said
Saturday. These include the removal of all punitive tariffs, that purchase
commitments must remain the same as what was agreed to at last year's Xi-Trump
G20 summit in Argentina and the agreement must be a "balanced text," it said.
They must be addressed even in a phasic agreement, otherwise some problems won't
be resolved, Taoran Notes wrote.
POLICY: The Chinese government should extend the same subsidies enjoyed by
domestic companies to foreign firms as well if it were to abide by the
soon-to-be-implemented new Foreign Investment Law, policy advisors said at the
6th China Inbound-Outbound Forum held by the Center for China and Globalization
(CCG) on Saturday. The new regulation, effective 2020, stipulates the
government's supporting policies, including funding, land supply and tax
reductions, shall be applied regardless of nationalities. Under the spirit of
the new law, if the central or local authorities offer subsidy for state-owned
companies, foreign companies should also enjoy the same support, said Cui Fan, a
researcher at the Advisory Committee for Economic and Trade Policy at the
Ministry of Commerce.
LIQUIDITY: The People's Bank of China (PBOC) skipped open market operations
for the sixth 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) decreased to 2.4398% from Friday's close of 2.4986%, Wind
Information showed. The overnight repo average fell to 2.0489% from Friday's
YUAN: The yuan strengthened to 7.0302 against the U.S. dollar from Friday's
close of 7.0376. PBOC set the dollar-yuan central parity rate higher at 7.0752,
compared with 7.0668 on Tuesday.
BONDS: The yield on 10-year China Government Bond was last at 3.2900%, up
from Friday's close of 3.2700%, according to Wind Information.
STOCKS: Shanghai Composite Index gained 0.58% to 2,975.49 as technology,
aviation and brokerage shares advanced. Hong Kong's Hang Seng Index rallied
1.65% to 27,547.30.
FROM THE PRESS: Chinese banks should manage risks of shadow-bank lending by
actively communicating with regulators and dispose of assets with poor liquidity
and long maturity, the Securities Daily reported citing Wang Jingwu, the
director of PBOC's Financial Stability Bureau. The central bank should also
further promote policy reform to guide investors' expectations and increase
supply of long-term funding, the newspaper cited Wang as saying.
Chinese state-owned enterprises (SOEs) should withdraw from non-core
industries where they don't have competitive advantages, and invest in key areas
related to national security, the real economy and strategically important
emerging industries, the Shanghai Securities Journal reported citing Hao Peng,
the party secretary of the State-owned Assets Supervision and Administration
Commission. SOEs should also expand overseas under the Belt & Road initiative,
and actively integrate into global industry and value chain, the newspaper cited
Hao as saying.
China can achieve its target importing $30 trillion worth of goods in the
next 15 years, as it has a large market of 1.4 billion people with more than 400
million in middle-income group, the China Business News reported citing
Assistant Minister of Commerce Ren Hongbin. China's imports dropped 0.1% y/y in
the first three quarters mainly due to changing prices of commodities, according
--MNI Beijing Bureau; +86 (10) 8532-5998; email: email@example.com
--MNI Beijing Bureau; +86 10 8532 5998; email: firstname.lastname@example.org