Exclusive interviews with leading policymakers that convey the true policy message that impacts markets.
Reporting on key macro data at the time of release.
- Emerging MarketsEmerging Markets
Real-time insight of emerging markets in CEMEA, Asia and LatAm region
Real-time insight of oil & gas markets
- 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
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 Access
POLICY: China’s benchmark Loan Prime Rate (LPR) is likely to be pushed lower next Monday following the People’s Bank of China (PBOC)’s surprise cut to key policy rates on Aug. 15, as it seeks to boost credit demand and reverse the slowing post-lockdown economic recovery, according to analysts.
POLICY: Beijing will pay close attention to the U.S. implementation of the Chip and Science Act recently signed by President Joe Biden and take any necessary measures to safeguard China's legitimate rights and interests, said Shu Jueting, spokeswoman for the Ministry of Commerce at a briefing.
LIQUIDITY: The PBOC injected CNY2 billion via 7-day reverse repos with the rate unchanged at 2.0%. This keeps the liquidity unchanged after offsetting the maturity of CNY2 billion repos today, according to Wind Information. The operation aims to keep liquidity reasonable and ample, the PBOC said on its website.
RATES: The seven-day weighted average interbank repo rate for depository institutions (DR007) increased to 1.4193% from 1.4146% on Wednesday, Wind Information showed. The overnight repo average rose to 1.1885% from the previous 1.1426%.
YUAN: The currency weakened to 6.7925 against the dollar from 6.7757 on Wednesday. The PBOC set the dollar-yuan central parity rate lower at 6.7802, compared with 6.7863 set on Wednesday.
BONDS: The yield on 10-year China Government Bond was last at 2.6130%, down from the previous close of 2.6225%, according to Wind Information.
STOCKS: The Shanghai Composite Index edged down 0.46% to 3,277.54, while the CSI300 index edged down 0.87% to 4,180.10. Hang Seng Index fell 0.80% to 19,763.91.
FROM THE PRESS: The Chinese yuan is under short-term depreciation pressure, against a backdrop of unusually loose domestic liquidity, weakening Chinese economic data and as the U.S. dollar index remains at a high level, Yicai.com reported, citing an unnamed trader at a state-owned bank. The direction of the yuan will mainly be dependent on trade balance gyrations, and the currency may continue to trade sideways around current levels if exports can maintain their strong trend, the newspaper wrote, citing analysts. The yuan weakened after the PBOC’s surprise rate cut earlier this week, although it has moved away from post-cut lows, when measured against the U.S. dollar, the newspaper noted.Local governments in China may use some of their remaining special bond quota in H2 to help boost infrastructure investment, as there is room for the issuance of over CNY1 trillion special bonds, the China Securities Journal reported, citing analysts. As of June, the level of outstanding local government special bonds nationwide stood at CNY20.26 trillion, compared to the government-set limit of CNY21.82 trillion, leaving room for ~CNY1.55 trillion of new special bonds to be issued, data compiled by the Ministry of Finance showed. Any such funds will still be mainly invested in infrastructure construction, after over 60% of the proceeds from special bonds issued in H1 went to infrastructure projects, the newspaper said, citing analysts.
Sign up now for free access to this content.
Please enter your details below and select your areas of interest.
Why Subscribe to
MNI is the leading providerof news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.
Our credibilityfor delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.