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MNI China Daily Summary: Wednesday, August 28

MNI (London)
     LIQUIDITY: The People's Bank of China (PBOC) kept a tight hold on interbank
liquidity conditions through August, according to the latest MNI liquidity
survey, although there was still an overall perception of looser central bank
policy. MNI's Liquidity Conditions Index inched higher to 65.4 in August after
settling at 64.3 in July, indicating moderately tighter conditions than in the
previous month. 
     LIQUIDITY: The PBOC injected CNY60 billion via 7-day reverse repos, adding
liquidity for a second consecutive day. This offsets the maturity of CNY60
billion in reverse repos, leaving liquidity unchanged, according to Wind
     RATE: The 7-day weighted average interbank repo rate for depository
institutions (DR007) rose to 2.7144% from Tuesday's close of 2.7056%, Wind
Information showed. The overnight repo average fell to 2.5979% from Tuesday's
     YUAN: Dollar-yuan was last at 7.1635 from Tuesday's close of 7.1670. The
PBOC set the dollar-yuan central parity rate higher at 7.0835, compared with
7.0810 on Tuesday.
     BONDS: The yield on the benchmark 10-year China Government Bond was last at
3.0475%, down from 3.0500% on Tuesday, according to Wind Information.
     STOCKS: The benchmark Shanghai Composite Index decreased 0.29% to 2,893.76.
Hong Kong's Hang Seng Index edged down 0.19% to 25,615.48.
     FROM THE PRESS: China's State Council has released 20 new policies to boost
consumption, according to a statement on the government website late Tuesday.
These include policies to relax or remove purchase restrictions on automobiles,
to promote consumption in the night time economy and during holidays, to support
the replacement of old intelligence products with new ones, and to develop chain
convenience stores.
     More than 20 provinces including Guangdong, Sichuan and Zhejiang have used
up their annual quota of local government special bonds issuance and only
CNY287.73 billion of special bonds are left to be issued this year, Shanghai
Securities News reported. It is possible that those provinces which have used up
their quota this year could use the remaining balance of special bond issuance
from last year, the newspaper said.
     New 5G technology will be officially commercialised by September this year
and will boost China's digital economy by CNY15.2 trillion in the years from
2020 to 2025, according to the Science and Technology Daily. Citing Wang Zhiqin,
associate dean of the China Academy of Information and Communications
Technology, the Daily reports that the integration of 5G with artificial
intelligence and big data will promote a profound transformation in the digital
economy, spanning areas of management and production.
--MNI Beijing Bureau; +86 (10) 8532-5998; email:
--MNI London Bureau; tel: +44 203-586-2225; email:
[TOPICS: M$A$$$,M$Q$$$,MBQ$$$]
MNI London Bureau | +44 203-865-3812 |
MNI London Bureau | +44 203-865-3812 |

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