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LIQUIDITY: The People's Bank of China (PBOC) skipped open market operations
for the ninth day, leaving liquidity unchanged, according to Wind Information.
Liquidity in the banking system is reasonable and ample, the PBOC said on its
RATES: The seven-day weighted average interbank repo rate for depository
institutions (DR007) increased to 2.1791% from Wednesday's close of 2.1046%,
Wind Information showed. The overnight repo average rose to 2.2001% from the
YUAN: The currency strengthened to 6.9862 against the dollar from 7.0176 on
Wednesday. The PBOC set the dollar-yuan central parity rate lower at 7.0085,
compared with the 7.0207 set on Wednesday.
BONDS: The yield on 10-year China Government Bond was last at 3.0750 %, up
from the close of 3.0600% on Wednesday, according to Wind Information.
STOCKS: The Shanghai Composite Index increased 1.39% to 3,450.59, extending
a seven-day rally. Hang Seng Index edged up 0.31% to 2,6210.16.
FROM THE PRESS: The China Securities Regulatory Commission (CSRC) vowed to
further crack down on illegal funding for stock market speculation after
publicizing 258 companies that had given illegal off-floor financing to
investors, the Economic Information Daily reported. The CSRC is preventing
investors from taking excessive leverage and a repeat of the stock market crisis
in 2015 when over-leveraged funds flowed into the market, the daily said citing
Yang Delong, the chief economist with the First Seafront Fund.
Chinese market participants anticipate Q2 growth to be as much as 3% due to
improving domestic demand, up from -6.8% in Q1, the Shanghai Securities Journal
said. Retail sales in June should flip to a positive 2.5% growth y/y from a
reduction of 2.8% y/y in May as the government adopted policies to boost
spending and overcome negative impact from the Covid-19, the journal said citing
Lian Ping, the chief economist with Zhixin Fund.
China is willing to revive talks with the U.S. at any level and any time,
Minister of Foreign Affairs Wang Yi said in a statement on the ministry's
website from his address to a virtual forum on U.S.-China relations. The two
countries should not seek to decouple their relationship but maintain dialogue
and cooperation, Wang said. The U.S. should stop politicising the Covid-19
pandemic and cooperate on fighting the global spread of the virus, Wang said.
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--MNI Beijing Bureau; +86 10 8532 5998; email: email@example.com