-
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, May 11
POLICY: Headline inflation in China is facing upward pressure even as overall weak demand erodes underlying prices, adding to challenges for monetary policy, according to analysts after the pace of increases in CPI unexpectedly broke 2%.
DATA: China's April consumer price index rose 2.1% y/y to hit a five-month high, accelerating from March and outshining a 1.8% forecast, due to Covid outbreaks and rising international commodity prices, data from the National Bureau of Statistics on Wednesday showed. The producer price index measuring factory gate prices further eased for the sixth month to 8.0% y/y from March's 8.3% y/y, but higher than the 7.8% forecast.
LIQUIDITY: The People's Bank of China (PBOC) injected CNY10 billion via 7-day reverse repos with the rates unchanged at 2.10%. The operation has led to a net injection of CNY10 billion as no reverse repos maturing 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 1.5581 from the close of 1.5366% on Tuesday, Wind Information showed. The overnight repo average rose to 1.3189% from the previous 1.3033%.
YUAN: The currency weakened to 6.7274 against the dollar from 6.7227 on Tuesday. The PBOC set the dollar-yuan central parity rate higher at 6.7290, compared with 6.7134 set on Tuesday.
BONDS: The yield on the 10-year China Government Bond was last at 2.8225%, up from Tuesday's close of 2.8075%, according to Wind Information.
STOCKS: The Shanghai Composite Index gained 0.75% at 3,058.70, while the CSI300 index rose 1.44% to 3,976.42. Hang Seng Index edged up 0.97% to 19,824.57.
FROM THE PRESS: China’s top securities regulator will focus on stabilizing market expectations, capital flows and market behaviour to smoothen A share market operations, Xinhua News Agency reported, citing Wang Jianjun, vice chairman of the China Securities Regulatory Commission. The CSRC will encourage listed companies to repurchase shares, increase holdings by major shareholders, boost dividends and support resumption of work and production amid Covid outbreaks, Xinhua cited Wang as saying. Though there was a net outflow of foreign capital in the trading of Shanghai and Shenzhen Stock Connect in March, but it turned into a net inflow in April, Wang said. He noted long-term funds have maintained a net inflow so far this year, indicating foreign investors' optimism about the long-term investment value of A shares.
China’s macro leverage, or debt-to-GDP ratio rose by 4.4 percentage points to 268.2% in Q1 from the previous quarter, as debt growth recovers while economic growth is at a low level, Yicai.com reported citing a report by the National Institution for Finance & Development. The main driver was the sharp increase in the leverage ratio of non-financial enterprises, reflecting easier credit supply, the report said. The macro leverage ratio may rise by more than 10 pps in 2022 should the annual GDP fail to reach 5%, the report said. This compares to 2021 when the ratio dropped by 6.3 pps amid a steady economic recovery with the epidemic under control, Yicai said.
Large banks in China are expected to lower provision coverage ratios to release more funds to support the real economy, the Economic Information Daily reported citing analysts. Funds released can be used to increase write-offs of non-performing loans and boost credit supply, the newspaper said citing Ming Ming, chief economist of CITIC Securities. Ten listed banks have already cut the ratio in Q1, with China Merchants Bank making the largest cut by 21.19 percentage points to 462.68%, 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.