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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.
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Free AccessMNI China Daily Summary: Wednesday, August 3
LIQUIDITY: The People's Bank of China (PBOC) injected CNY2 billion via 7-day reverse repos with the rate unchanged at 2.1%. This keeps the liquidity unchanged after offsetting the maturity of CNY2 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) fell to 1.3000 from the close of 1.3862% on Tuesday, Wind Information showed. The overnight repo average decreased to 1.0214% from the previous 1.0667%.
YUAN: The currency strengthened to 6.7549 against the dollar from 6.7580 on Tuesday. The PBOC set the dollar-yuan central parity rate higher at 6.7813, compared with 6.7462 set on Tuesday, marking the biggest daily drop since Jun 2.
BONDS: The yield on the 10-year China Government Bond was last at 2.7200%, down from Tuesday's close of 2.7275%, according to Wind Information.
STOCKS: The Shanghai Composite Index edged down 0.71% at 3,163.67, while the CSI300 index lost 0.98% to 4,066.98. Hang Seng Index edged up 0.40% to 19,767.09.
FROM THE PRESS: U.S. House of Representatives Speaker Nancy Pelosi's visit to Taiwan seriously infringes upon China's sovereignty and territorial integrity, and has a severe impact on the political foundation of China-U.S. relations, Xinhua News Agency reported citing a statement by the Ministry of Foreign Affairs late on Tuesday after Pelosi arrived in Taiwan and vowed America’s commitment to support Taiwan’s democracy. The ministry said China will take all necessary measures. The People's Liberation Army Eastern Theater Command launched joint military operations around Taiwan island starting on Tuesday night as a solemn deterrent against the U.S. escalation of tension on the Taiwan issue, Xinhua reported.
China will suspend the import of some Taiwanese fruits and seafood, including citrus, chilled white hairtail and frozen horse mackerel starting on Wednesday, the People’s Daily reported citing a statement by China Customs released following U.S. House of Representatives Speaker Nancy Pelosi's visit to Taiwan on Tuesday. The Ministry of Commerce also said in a statement that China will suspend the export of natural sand to Taiwan from Wednesday, the newspaper reported.
The PBOC should cut the reserve requirement ratio or interest rates in a timely manner to boost aggregate demand, while promoting steady growth of credit, according to a report by the China Finance 40 Forum. China should also supplement local government resources quickly to ensure the intensity of their fiscal spending, the report said. It should also provide broader relief plans for real estate developers facing liquidity crunches, such as delaying the repayment of domestic debts, and actively promoting debt restructuring with the help of local governments, according to the report
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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.