-
Policy
Policy
Exclusive interviews with leading policymakers that convey the true policy message that impacts markets.
LATEST FROM POLICY: -
EM Policy
EM Policy
Exclusive interviews with leading policymakers that convey the true policy message that impacts markets.
LATEST FROM EM POLICY: -
G10 Markets
G10 Markets
Real-time insight on key fixed income and fx markets.
Launch MNI Podcasts -
Emerging Markets
Emerging Markets
Real-time insight of emerging markets in CEMEA, Asia and LatAm region
-
Commodities
Commodities
Real-time insight of oil & gas markets
-
Credit
Credit
Real time insight of credit markets
-
Data
-
MNI 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
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.
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 AccessMNI China Daily Summary: Thursday, January 12
POLICY: China is ready to work with other parties to promote international tourism following Beijing’s downgrading of Covid-19 to "level B management and control", the Ministry of Commerce (MOFCOM) said at a press conference on Thursday.
POLICY: China's December Consumer Price Index rose to 1.8% y/y, in line with the median forecast of 1.8%, and faster than November’s 1.6% y/y pace as entertainment sector and traffic recovered after the Covid-19 reopening, and food costs increased.
LIQUIDITY: The People's Bank of China (PBOC) conducted CNY65 billion via 7-day reverse repos and CNY 52 billion via 14-day reverse repos with the rates unchanged at 2.00% and 2.15%, respectively. The operation has led to a net injection of CNY115 billion after offsetting the maturity of CNY2 billion reverse repos today, according to Wind Information. The operation aims to keep banking system liquidity stable before Chinese New Year, the PBOC said on its website.
RATES: The seven-day weighted average interbank repo rate for depository institutions (DR007) decreased to 1.9865% from 2.0207% on Wednesday, Wind Information showed. The overnight repo average increased to 1.4526% from the previous 1.4332%.
YUAN: The currency strengthened to 6.7565 against the dollar from 6.7775 on Wednesday. The PBOC set the dollar-yuan central parity rate lower at 6.7680, compared with 6.7756 set on Wednesday.
BONDS: The yield on 10-year China Government Bonds was last at 2.9000%, down from Wednesday's close of 2.9125%, according to Wind Information.
STOCKS: The Shanghai Composite Index edged up 0.05% to 3,163.45 while the CSI300 index was up 0.20% to 4,017.87. The Hang Seng Index was up 0.36% to 21,514.10.
FROM THE PRESS: Shanghai will target GDP growth of above 5.5% in 2023, as it makes efforts to boost consumption and develop its digital economy, according to a recent government work report delivered by Shanghai Mayor Gong Zheng. The unemployment rate is targeted at below 5%, and work will be done to strengthen its global financial and consumption-centre status. The city will look at increasing cross-border yuan business and facilitate international financial services. (Source: 21st Century Business Herald)
Banks in China will be encouraged to carry out overseas yuan loans, lower transaction financing costs, and support the settlement of bulk commodities and trade of all types in the yuan, according to a circular jointly issued by the People’s Bank Of China and Ministry of Commerce. Support should be given to promote yuan-denominated trading with RCEP members, and encourage local governments to use special funds targeting trade services innovation, and projects likely to boost yuan transactions abroad, according to the PBOC. For overseas projects, such as those included in the Belt and Road initiative, priority should be given to use the yuan to settle business transactions.
Tax reduction policies in 2023 are expected to focus on promoting R&D and boosting consumption, according to analysts cited by Securities Daily. Analysts said the recent removal of VAT for small businesses with sales less than CNY100,000 per month, will boost business confidence, help employment, and ensure people's livelihoods. Looking forwards, analysts expected further tax relief measures to be tilted towards advanced manufacturing and high-tech enterprises. Policies will be needed to help stabilize the confidence and accelerate the recovery of the national economy, the paper noted.
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.