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E-Minis Pull Lower


Bland 5-Year Auction


Consumer Confidence Data Take Focus


The Japanese MOF sells Y2.0327tn 5-Year JGBs:


The Japanese MOF sells Y2.8069tn 6-Month Bills:


Inflation Data Under Scrutiny

LIQUIDITY: The People's Bank of China (PBOC) injected CNY200 billion via 7-day reverse repos with the rate unchanged at 2.2% on Thursday. The operations lead to a net injection of CNY100 billion after offsetting the maturity of CNY100 billion reverse repos, according to Wind Information. The operation aims to keep month-end liquidity stable, the PBOC said on its website.

RATES: The seven-day weighted average interbank repo rate for depository institutions (DR007) increased to 2.3249% from 2.2867% on Wednesday, Wind Information showed. The overnight repo average rose to 1.9355% from the previous 1.9196%.

YUAN: The currency weakened to 6.4006 against the dollar from 6.3934 on Wednesday. The PBOC set the dollar-yuan central parity rate lower at 6.3957, compared with the 6.3856 set on Wednesday.

BONDS: The yield on 10-year China Government Bond was last at 3.000%, down from Wednesday's close of 3.0175%, according to Wind Information.

STOCKS: The Shanghai Composite Index tumbled 1.23% to 3,518.42, while the CSI300 index decreased 0.69% to 4,864.14. Hang Seng Index lost 0.28% to 25,555.73.

FROM THE PRESS: The Chinese yuan may not maintain its strength since October, but will likely fluctuate under the longer-term prospect of higher U.S. interest rate and China losing its export dominance, the China Securities Journal reported citing analysts including Guan Tao, the chief economist of BOC International. China's export advantage may not continue as the pandemic-hit global supply chain recovers and diverts some orders to other economies, reducing its trade surplus, Guan was cited saying. The Federal Reserve may slow the pace of its balance sheet expansion by year-end, pushing up interest rates and drawing funds back to the U.S. from emerging markets, the newspaper said citing Cheng Qiang, chief analyst at CITIC Securities.

China's move to defer some tax payments for small manufacturing firms for three months from November will help the country stabilize its economy, ease companies' capital shortages and stabilize employment, The Paper said following a State Council measure to postpone CNY200 billion tax payments. With rising commodity prices, SMEs face difficulties operating, the newspaper said. Coal and heating companies can also enjoy deferred tax payments worth CNY17 billion in Q4 to help resolve their operational difficulties, the newspaper said. Separately, China also extended the tax exemptions on bond interests for foreign investors until the end of 2025, a move that intends to stabilize foreign investment amid the Evergrande Group's debt crisis.

The China Banking and Insurance Regulatory Commission approved Bank of Liaoshen to merge with Yingkou Coastal Bank and Bank of Liaoyang, and to assume their effective assets, all liabilities, business, branches and employees as more smaller banks are being merged and reorganized, the Economic Daily reported. In this way, smaller banks can use bond issuance, private placement, equity reorganization, asset securitization, as well as the introduction of strategic investors and new management to fully expose risks, and vigorously reduce non-performing assets, the newspaper said. It can also reduce the cost of competition among multiple banking entities in the region, the newspaper added.