MNI China Daily Summary: Thursday, January 16
EXCLUSIVE: China’s domestic coal prices are likely to fall further from 2024 levels as supply outpaces demand, and government policies aim to stabilise, rather than stimulate, housing and infrastructure, local analysts told MNI.
POLICY: China produced 48.2 million deadweight tonnes of shipping vessels last year, up 13.8% y/y, said the Ministry of Industry and Technology.
LIQUIDITY: The People's Bank of China (PBOC) conducted CNY340.5 billion via 7-day reverse repos, with the rate unchanged at 1.50%. The operation led to a net injection of CNY336.4 billion after offsetting the maturity of CNY4.1 billion today, according to Wind Information.
RATES: The seven-day weighted average interbank repo rate for depository institutions (DR007) rose to 2.3391% from 2.2365% previously, Wind Information showed. The overnight repo average decreased to 1.8585% from the previous 1.8623%.
YUAN: The currency strengthened to 7.3317 against the dollar from the previous 7.3319. The PBOC set the dollar-yuan central parity rate lower at 7.1881, compared with 7.1883 set on Wednesday. The fixing was estimated at 7.3274 by Bloomberg survey today.
BONDS: The yield on 10-year China Government Bonds was last at 1.6357%, up from the previous close of 1.6212%, according to Wind Information.
STOCKS: The Shanghai Composite Index rose 0.28% to 3,236.03, while the CSI300 index edged up 0.11% to 3,800.38. The Hang Seng Index was up 1.23% to 19,522.89.
FROM THE PRESS: China will attract foreign investment this year through opening the service sector and expanding promotions in the telecommunications, medical care and education sectors, according to Li Yongyan, deputy representative at the Ministry of Commerce for International Trade Negotiations. The Ministry will reduce the negative list and increase institutional opening, Li said, adding that efforts to resolve foreign-invested enterprises' issues in qualifications, standard settings, and government procurement will be made. (Source: 21st Century Herald)
Shanghai must stabilise growth this year through expanding domestic demand and stimulating consumption, according to Gong Zheng, deputy secretary of the Shanghai Municipal Party Committee and mayor of Shanghai. Yicai news outlet noted Shanghai's per capita disposable income last year was CNY88,000, an increase of about 4.1% y/y, while the city’s GDP was estimated to grow by about 5%.
More than 10 provinces have set annual GDP growth targets of around 5% this year, Yicai.com reported. Beijing, Shanghai and Guangdong are targeting about 5%, with Zhejiang province at around 5.5%. Inner Mongolia and Hainan province are aiming for 6% or above. Shanghai, as an international consumer centre, will organise consumption activities and develop new business models combining commerce, travel, culture, sports and exhibitions, the newspaper said.