-
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: Wednesday, April 20
PBOC: China's central bank on Wednesday left its benchmark rates for loans unchanged, according to a statement on the People's Bank of China (PBOC) website. The move was expected by some market analysts after the PBOC cut the reserve requirement ratio and left unchanged another key policy rate last week. The Loan Prime Rate, guiding companies' cost of borrowing, remains at 3.70% for the one-year maturity and 4.60% for five years.
LIQUIDITY: The PBOC injected CNY10 billion via 7-day reverse repos with the rate unchanged at 2.1% on Wednesday. This keeps the liquidity unchanged after offsetting the maturity of CNY10 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) increased to 1.7857% from the close of 1.7357% on Tuesday, Wind Information showed. The overnight repo average rose to 1.3028% from the previous 1.2947%.
YUAN: The currency weakened to 6.4153 against the dollar from 6.3778 on Tuesday. The PBOC set the dollar-yuan central parity rate higher at 6.3996, compared with 6.3720 set on Tuesday.
BONDS: The yield on the 10-year China Government Bond was last at 2.8575%, up from Tuesday's close of 2.8475%, according to Wind Information.
STOCKS: The Shanghai Composite Index lost 1.35% at 3,151.05, while the CSI300 index tumbled 1.55% to 4,070.79. Hang Seng Index fell 0.40% to 20,944.67.
FROM THE PRESS: The PBOC move to transfer over CNY1 trillion in profits to the central government is equivalent to releasing the same amount of base currency, which will better spur the economic growth than a cut to reserve requirement ratio, the Economic Daily reported citing Wang Yiming, a member of the PBOC’s Monetary Policy Committee. An RRR cut will increase available funds of commercial banks but may not necessarily lead to credit expansion, while profits transferred by the PBOC will become increased fiscal spending to help companies and residents, effectively boosting demand, the newspaper said citing Wang. As of mid-April, CNY600 billion in profits has been turned in to fund tax rebates and transfer payments to local governments, which is basically the same as a 25 bp RRR cut, the newspaper said.
Shanghai should first resume its manufacturing production, followed by the related sectors and service industry, and accelerate cleaning up its ports with a large backlog of goods, Yicai.com reported citing Zong Chuanhong, secretary-general of the Yangtze River Delta and Yangtze River Economic Belt Research Center. Shanghai's neighboring provinces including Jiangsu and Anhui should coordinate to help smoothen the transportation of core components and key raw materials for automakers and semiconductor companies in Shanghai, helping them obtain transport passes, the newspaper said.
China has refunded CNY420 billion of taxes mainly to small and micro companies in the first half of April, about 30% of the total CNY1.5 trillion planned for this year, as the government acts to mitigate the impact of the epidemic and stabilize the economy, the China Securities Journal reported. Companies mainly use the rebate funds for expanding reproduction, technology R&D as well as purchases of raw materials, 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.