-
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.
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: Tuesday, April 30
POLICY: China will continue its expansionary fiscal and monetary policy to cope with weak domestic demand and uncertain external environment, according to a statement of the Politburo meeting of the Central Committee of the Communist Party of China on April 30. Monetary-policy tools, such as interest rates and the reserve requirement ratio, will be used at a flexible pace to reduce overall social financing costs, while fiscal authorities will launch ultra-long special treasuries soon and accelerate the issuance of special local-government bonds, maintaining a necessary strength of fiscal expenditure, the meeting said.
POLICY: China will focus on ensuring the delivery of unfinished housing projects and work on policies to digest existing housing and upgrade new homes to better cater to market demand, the state-run Xinhua New Agency reported following a politburo meeting.
DATA: China's manufacturing Purchasing Managers' Index moderated by 0.4 points to 50.4 in April, expanding above the breakeven 50 level for the second month, driven by improved external demand and rapid expansion in high-end manufacturing amid policy push, data from the National Bureau of Statistics showed.
DATA: China's Caixin manufacturing PMI registered 51.4 in April, up 0.3 points from March, staying in the expansionary zone above the breakeven 50 mark for a sixth month and hitting the highest level since March 2023, as both external and domestic demand improved, the financial publisher said.
LIQUIDITY: The People's Bank of China (PBOC) conducted CNY440 billion via 7-day reverse repo before the May Day holiday, with the rates unchanged at 1.80%. The operation has led to a net injection of CNY438 billion after offsetting the maturity of CNY2 billion today, according to Wind Information.
RATES: China's seven-day weighted average interbank repo rate for depository institutions (DR007) increased to 2.1098% from 2.1024%, Wind Information showed. The overnight repo average rose to 1.9389% from 1.8266%.
YUAN: The currency strengthened to 7.2416 from 7.2467 at Monday's close. The PBOC set the dollar-yuan central parity rate lower at 7.1063, compared with 7.1066 set on Monday. The fixing was estimated at 7.2432 by Bloomberg survey today.
BONDS: The yield on 10-year China Government Bonds was last at 2.2975%, down from Monday's close of 2.3500%, according to chinamoney.com.cn.
STOCKS: The Shanghai Composite Index lost 0.26% to 3,104.82 while the CSI300 index fell 0.54% to 3,604.39. The Hang Seng Index edged up 0.09% to 17,763.03.
FROM THE PRESS: Inter-bank liquidity is generally sufficient and the funding situation will remain stable across the month, Securities Daily reported citing Wang Qing, chief macro analyst from Golden Credit Rating. The People’s Bank of China has kept the amount of open market operations relatively low due to limited demand for cash withdrawals during the May Day holiday, said Wang. The average value of DR007 since April is 1.85%, which is close to the current short-term policy rate of 1.8%, indicating no obvious liquidity demand pressure, the newspaper said citing analysts. The average DR007 will continue to run above 1.8% in May, as fiscal spending moderates due to season factors while the issuance of local government bonds will likely accelerate, said Wang.
The central government should establish a fund to guarantee the delivery of housing projects, given the lack of funds in local governments and developers as well as relatively low motivation of banks to provide funds, Yicai reported citing Lu Ting, chief economist of Nomura China. Authorities should guarantee delivery of projects with high sales rates to homebuyers, and local governments should acquire the remaining unsold units and use them as affordable housing with funding support from the central government, said Lu. The downward spiral of the entire Chinese real-estate market persists, and more proactive policies will be introduced in the coming year, Lu added.
Real-estate stocks rose on Monday with more than 20 companies including Vanke hitting their daily limit on the A-share market, driven by rumors about “directional changes in housing policy”, Yicai.com reported. Some believe authorities will shift focus to destocking from promoting “three major projects” and allow local-government financing vehicles to acquire and convert existing housing into rental housing, relax purchase and prices restrictions and reduce deed taxes to 1%. Recently, in addition to the full relaxation of purchase limit by upper tier-two cities Chengdu, first-tier city Shenzhen is also rumored to ease homebuying restrictions in suburban areas, the newspaper said.
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.