-
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 PodcastsFixed IncomeFI Markets AnalysisCentral Bank PreviewsFI PiFixed Income Technical AnalysisUS$ Credit Supply PipelineGilt Week AheadGlobal IssuanceEurozoneUKUSDeep DiveGlobal Issuance CalendarsEZ/UK Bond Auction CalendarEZ/UK T-bill Auction CalendarUS Treasury Auction CalendarPolitical RiskMNI Political Risk AnalysisMNI Political Risk - US Daily BriefMNI Political Risk - The week AheadElection Previews -
Emerging Markets
Emerging Markets
Real-time insight of emerging markets in CEMEA, Asia and LatAm region
-
Commodities
-
Credit
Credit
Real time insight of credit markets
-
Data
-
Global Macro
Global Macro
Actionable insight on monetary policy, balance sheet and inflation with focus on global issuance. Analysis on key political risk impacting the global markets.
Global MacroDM Central Bank PreviewsDM Central Bank ReviewsEM Central Bank PreviewsEM Central Bank ReviewsBalance Sheet AnalysisData AnalysisEurozone DataUK DataUS DataAPAC DataInflation InsightEmployment InsightGlobal IssuanceEurozoneUKUSDeep DiveGlobal Issuance Calendars EZ/UK Bond Auction Calendar EZ/UK T-bill Auction Calendar US Treasury Auction Calendar Global Macro Weekly -
About Us
To read the full story
Sign up now for free trial access to this content.
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, October 20
LPR: China's reference lending rate remained unchanged, according to a statement on the People's Bank of China (PBOC) website, which was in line with market expectations as the central bank kept a key policy rate steady on Monday. The Loan Prime Rate, based on the rate of PBOC’s Medium-term Lending Facility and quotes submitted by 18 banks, remains at 3.65% for the one-year maturity and 4.3% for over five years.
LIQUIDITY: The PBOC injected CNY2 billion via 7-day reverse repos with the rate unchanged at 2.0%. This keeps 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) rose to 1.5186% from 1.5057% on Wednesday, Wind Information showed. The overnight repo average increased to 1.1572% from the previous 1.1156%.
YUAN: The currency weakened to 7.2377 against the dollar from 7.2242 on Wednesday. The PBOC set the dollar-yuan central parity rate higher at 7.1188, compared with 7.1105 set on Wednesday.
BONDS: The yield on 10-year China Government Bonds was last at 2.7500%, up from Wednesday's close of 2.7350%, according to Wind Information.
STOCKS: The Shanghai Composite Index edged down 0.31% to 3,035.05, while the CSI300 index lost 0.57% to 3,754.93. The Hang Seng Index fell 1.40% to 16,280.22.
FROM THE PRESS: China should be able to stabilise the economy and return to a growth rate of around 5% if Covid outbreaks are controlled, China Newsweek reported citing Liu Yuanchun, president of Shanghai University of Finance and Economics. China’s current inflation is not high and the growth rate of some central and western regions can still reach 6-7%, Liu was cited as saying. The domestic demand-led growth model will show its strength as policies to promote consumption and investment kick in. Liu said to expand domestic demand, it was essential to reform the income distribution system and stimulate the vitality of the private economy and state-owned economy, as well as foreign enterprises in China.
China's commercial banks are ramping up credit supply in Q4 in response to top policymakers' calls to increase support for the real economy, Yicai.com reported citing industry sources. Banks have lowered the borrowing threshold in key areas, reduced corporate loan rates and improved the efficiency of application reviews. Manufacturing, SMEs, technology-based enterprises, and green development are expected to have received increased credit support, Yicai said. There could be a significant increase in October credit growth and aggregate finance may remain above CNY2 trillion, with the growth rate to accelerate to as much as 10.8% from September’s 10.6%, the newspaper said citing Wang Yifeng, chief banking analyst with Everbright Securities.
The PBOC still has room to lower financing costs in the real economy and quicken the use of structural tools to help promote the steady growth of total credit, China Securities Journal reported citing analysts. The average interest rate of corporate loans was 4.05% at the end of August, the lowest rate on record. Both medium and long-term corporate loans, as well as total credit, are about to increase, the newspaper said citing Zhang Xu, chief fixed income analyst at Everbright Securities. Guiding down the 5-year Loan Prime Rate, which many lenders base mortgage rates on, is the key to a recovery in medium and long-term borrowing by residents, the newspaper said citing analysts.
To read the full story
Sign up now for free trial access to this content.
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.