-
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 Podcasts -
Emerging Markets
Emerging Markets
Real-time insight of emerging markets in CEMEA, Asia and LatAm region
-
Commodities
Commodities
Real-time insight of oil & gas markets
-
Credit
Credit
Real time insight of credit markets
-
Data
-
MNI 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
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, January 03
EXCLUSIVE: China will need to offer more investment options for yuan holders, including expanding its offshore bond market, to support the expected increased use of the yuan in settling oil and gas trade with Gulf countries, but the internationalisation of the currency must be done at a gradual pace that doesn’t threaten the stability of the yuan or the financial system, advisers told MNI.
POLICY: China's Caixin manufacturing PMI, affected by the impact of relaxed Covid control measures, contracted for a fifth consecutive month to 49.0 in December, marking the lowest reading in three months.
LIQUIDITY: The People's Bank of China (PBOC) conducted CNY50 billion via 7-day reverse repos with the rates unchanged at 2.00%. The operation led to a net drain of CNY534 billion after offsetting the maturity of CNY5584 billion reverse repos today, according to Wind Information. The operation aims to keep banking system liquidity reasonable and ample, the PBOC said on its website.
RATES: The seven-day weighted average interbank repo rate for depository institutions (DR007) decreased to 1.6448% from the close of 2.6782% on Monday, Wind Information showed. The overnight repo average was down to 1.3946% from the previous 2.4297%.
YUAN: The currency strengthened to 6.9050 against the U.S. dollar from the previous close of 6.9514. The PBOC set the dollar-yuan central parity rate lower at 6.9475, compared with 6.9646 set before New Year holiday.
BONDS: The yield on the 10-year China Government Bond was last at 2.8500%, down from the close of 2.8680% on New Year's Eve, according to Wind Information.
STOCKS: The Shanghai Composite Index ehsidged up 0.88% to 3,116.51, while the CSI300 index went up 0.42% to 3,887.90. Hong Kong's Hang Seng Index was up 1.84% to 20,145.29.
FROM THE PRESS: China’s difficulties in 2022 were greater than anticipated but the economy will rebound in 2023, according to Zhao Chenxin, Deputy Director of the National Development and Reform Commission (NDRC). Zhao said the NDRC will support projects linked to local government bonds, and will accelerate the release of special loans for equipment renewal and promote growth in manufacturing. Foreign investment should be encouraged, and the catalogue of accessible industries should be revised. Private enterprise and investment will be supported and guided to participate in national development strategies. Zhao’s comments were reported in an article by the 21st Century Business Herald.
China will use exchange rate policy tools to promote foreign trade, expand foreign capital stock and to manage its FX reserve assets in 2023, according to Pan Gongsheng, director of the State Administration of Foreign Exchange (SAFE). Pan said SAFE is ready to support cross-border financial cooperation under trade agreements such as the CPTPP and Digital Economy Partnership Agreement. China will develop foreign access to its bond market, further the use of panda bonds, and expand currency pools for multinational companies looking to invest in the domestic economy. Pan's comments were reported by Yicai.com.
The PBOC will focus on boosting confidence and enhancing growth whilst maintaining price stability, according to the PBOC's end of Q4 meeting. It's necessary to maintain reasonable and sufficient liquidity, and keep the growth rate of money supply and social financing aligned with nominal economic growth. For real estate demand side policy, it's important to improve financial services for new residents and young people. In addition to supporting the Central Economic Work Conference instructions, the PBOC said it will look to guide the healthy development of online financial services.
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.