-
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, July 6
EXCLUSIVE: The inclusion of the U.S. within the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) could temper its intensifying regional rivalry with China, however, the relationship faces challenges, despite a recent flurry of high-profile visits, a leading Chinese international relations advisor told MNI. While U.S. Treasury Secretary Janet Yellen’s visit to Beijing this week represents something of a thaw following Secretary of State Antony Blinken’s meeting with President Xi Jinping and foreign minister Qin Gang in June, the upcoming U.S. presidential election could stifle reconciliation as candidates' campaign on anti-China issues, according to Professor Wang Yiwei, director at Renmin University's Institute of International Affairs.
LIQUIDITY: The People's Bank of China (PBOC) conducted CNY2 billion via 7-day reverse repos, with the rates at 1.90%. The operation has led to a net drain of CNY191 billion after offsetting the maturity of CNY193 billion reverse repo today, according to Wind Information. The operation aims to keep banking system liquidity reasonable and ample, the PBOC said on its website.
RATES: The seven-day weighted average interbank repo rate for depository institutions (DR007) decreased to 1.7151% from 1.7842%, Wind Information showed. The overnight repo average fell to 1.0446% from the previous 1.1159%.
YUAN: The currency weakened to 7.2465 against the dollar from 7.1968 on Wednesday. The PBOC set the dollar-yuan central parity rate higher at 7.2098, compared with 7.1968 set on Wednesday. The fixing was estimated at 7.2458 by BBG survey today.
BONDS: The yield on 10-year China Government Bonds was last at 2.7150%, flat from Wednesday's close, according to Wind Information.
STOCKS: The Shanghai Composite Index closed down 0.54% at 3,205.57, while the CSI300 index decreased 0.67% to 3,842.75. The Hang Seng Index tumbled 3.02% to 18,533.05.
FROM THE PRESS: The yuan could gradually stabilise or appreciate against the U.S. dollar, should market expectations on the Chinese economy improve and the USD index weakens as the US economy slows, said Ming Ming, chief economist of CITIC Securities. The central bank has plenty of policy tools to deal with large FX fluctuations, including raising the FX risk reserve ratio or the deposit reserve ratio, as well as using central bank bills in the offshore market and restarting countercyclical factors, said analysts from Donghai Securities. The yuan began to rebound this week after approaching the CNY7.3 mark against USD. (Source: Yicai)
Several people close to major state-owned banks have denied claims top banks have offered local government financing vehicles (LGFVs) loans with 25-year maturities and temporary interest relief to avoid a credit crunch. The loans were said to wave interest or principal payments for the first four years. (Source: 21st Century Business Herald)
China’s National Bureau of Statistics expects June’s CPI data to remain unchanged from May’s 0.2% y/y increase, according to Yicai. The news outlet noted pork prices, a key component of CPI, have dragged down inflation this year as producers increased slaughter due to swine flu and faced lower than expected consumer demand. The NDRC began a new round of pork purchasing to increase national reserves and stabilise prices. Wu Chaoming, deputy director of the Caixin Research Institute, said CPI in June will remain below 1% y/y, reflecting insufficient domestic demand and slow recovery of household income. (Source: Yicai)
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.