-
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
Commodities
Real-time insight of oil & gas markets
-
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 Chart Packs -
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, July 10
TOP NEWS: China interbank market cheered after the People's Bank of China
(PBOC) opened the liquidity floodgate to head off the usual June anxieties over
a destabilizing cash crunch and soothe concerns over an economic slowdown. A
total 18 out of 19 traders who took part in the latest MNI monthly interbank
survey reported an improvement in liquidity conditions -- a first since the poll
began in May 2014.
DATA: China's National Bureau of Statistics released consumer price index
(CPI) and producer price index (PPI) data for June today. PPI rose sharply in
June, up 4.7% on the year, while the CPI rose at a steady 1.9%. The PPI increase
in June was the highest since the 4.9% recorded in December, accelerating from
4.1% in May.
LIQUIDITY: The PBOC skipped its open market operations for a second
consecutive day on Tuesday, stating that a relatively high level of liquidity
can absorb maturing reverse repos. That resulted in a net drain of CNY30
billion, as the same amount of reverse repos matured today. CFETS-ICAP's
money-market sentiment index closed at 38 on Monday, up from 32 on Friday.
MONEY MARKET RATES: Benchmark 7-day deposit repo average rose to 2.6481% on
Tuesday from 2.5696% on Monday; overnight average increased to 2.3006% from
1.9514% on Monday: Wind Information.
YUAN: The yuan rose to 6.6018 against the U.S. dollar on Tuesday from
Monday's 6.6175 closing, following today's stronger fixing. The PBOC set the
yuan central parity rate at 6.6295 from Monday's 6.6393.
BONDS: The yield on benchmark 10-year China Government Bond was last at
3.5400%, down from the previous close of 3.5450%, according to Wind Information.
STOCKS: Shares in Shanghai rose for a third consecutive day despite the
trade tensions between the U.S. and China. Shanghai Composite Index closed 0.44%
higher at 2827.63. Hong Kong's Hang Seng Index rose 0.54% to 28842.92. Shares in
the Chinese smartphone maker, Xiaomi bounced back 15% in Hong Kong after bad
first day, taking Xiaomi's shares above their issue price of 17 Hong Kong
dollars. Chinese H-shares are extending their gains today even as A-shares
weaken, helping to reverse 5 consecutive days of A-share outperformance which
has taken the AH-Premium index back up to 120.8.
FROM THE PRESS: The fine-tuning of monetary policy tools should not be read
as a policy reversal, two researchers at the state-run think tank National
Institute for Finance and Development, wrote in a commentary published by the
21st Century Business Herald. Monetary policies are not enough to address
structural issues; instead, the PBOC should construct a more comprehensive
structural policy regime and use targeted policies to regulate the flow of
capital, the researchers said. China should strengthen its support to small and
micro firms, initiate more active fiscal policies and better regulate SOEs,
according to the commentary.
The State Council, with some of its ministries, has published a policy
package that will increase imports to promote foreign trade balance, reported
Economic Information Daily. The package aims to satisfy rising consumption
demands and to upgrade industrial structure, said the Daily. China will support
imports of consumer products, medicines and nursing facilities to upgrade
consumption, and Belt & Road countries will be key sources of imports, said the
Daily. China will accelerate building trade free zones and enhancing the
liberalization and efficiency of foreign trade, the Daily added.
China's central state-owned enterprises (SOEs) should stick to supply-side
structural reform and improving their investment structure to deleverage, China
Securities Journal reported citing Xiao Yaqing, director of State-owned Assets
Supervision and Administration Commission (SASAC). The average debt/asset ratio
of central government SOEs was 66.0% as of May, 0.4 percentage point lower over
last year and 0.3 pp less than the ratio at the beginning of 2018, according to
the Daily. Xiao urged SOEs to implement debt-to-equity swaps and mixed ownership
reform to lower debts, said the Daily.
--MNI Beijing Bureau; +86 (10) 8532-5998; email: sherry.qin@marketnews.com
--MNI Beijing Bureau; +86 10 8532 5998; email: william.bi@mni-news.com
[TOPICS: M$A$$$,M$Q$$$,MBQ$$$]
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.