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Test 003, Please Ignore


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EGB Supply for W/C Jul 26


Pullback Considered Corrective


What a Short, Strange Trip It's Been


Pfizer, Moderna Jabs Retain High Trust; AZ, Sputnik Lower

     LIQUIDITY: The People's Bank of China (PBOC) skipped open market operations
on Wednesday, leaving liquidity unchanged, according to Wind Information. Total
liquidity in the banking system is relatively high, PBOC said.
     RATES: The seven-day weighted average interbank repo rate for depository
institutions (DR007) increased to 2.2125% from Tuesday's close 2.1510%, Wind
Information showed. Overnight repo average fell to 1.4950% from 1.5292%
     YUAN: The yuan strengthened to 6.9730 against the dollar from Tuesday's
close 6.9775. PBOC set the dollar-yuan central parity rate lower at 6.9718,
compared with 6.9897 on Tuesday.
     BONDS: The yield on 10-year China Government Bonds was last at 2.8550%,
unchanged from Tuesday's close, according to Wind Information.
     STOCKS: The Shanghai Composite Index gained 0.87% to 2,926.90. Hong Kong's
Hang Seng Index also rallied 0.87% to 27,823.66.
     FROM THE PRESS: China should strive to stabilize 2020 growth at about 5% by
raising the deficit-to-GDP ratio above 3% and issuing CNY1 trillion special
government bonds to support tax and fee cuts for small companies and transfer
payments for areas affected by the coronavirus outbreak, Huang Qifan, vice
chairman of the China Center for International Economic Exchanges and a former
mayor of Chongqing city, wrote in the China Economic Weekly. The central bank
should also step up its purchases of government bonds and further lower the
reserve requirement ratio and interest rates after the epidemic eases in Q2,
said Huang.
     The PBOC is likely to conduct medium-term lending facility (MLF) with a
lower interest rate next week to offset the maturity of a large amount of
reverse repos, the China Securities Journal reported citing analysts. Monetary
policy will focus on adjusting policy interest rates and offering targeted
support to areas affected by the coronavirus epidemic, and the central bank will
still inject certain short-term liquidity to offset CNY1.42 trillion of reverse
repos set to mature by the end of February, the newspaper said.
     The coronavirus outbreak in China may peak in later February and then
plateau and decrease, the official news website Huanqiu reported citing Zhong
Nanshan, China's senior medical adviser, who forecast based on mathematical
modelling. The turning point of the epidemic depends on prevention and people
travelling from their hometowns back to cities for work, Huanqiu cited Zhong as
     About 34% of small businesses may run out of cash in a month, while 33.1%
can sustain only two months, the 21st Century Business Herald reported citing a
survey of 995 small and medium Chinese companies by Peking and Tsinghua
Universities. Banks are concerned with the potential increase in non-performing
loans, which will keep them from lending to small companies, the newspaper said
citing sources at banks.
--MNI Beijing Bureau; +86 (10) 8532-5998; email:
--MNI Beijing Bureau; +86 10 8532 5998; email:
[TOPICS: M$A$$$,M$Q$$$,MBQ$$$]