MNI China Daily Summary: Wednesday, October 9
LIQUIDITY: The People's Bank of China (PBOC) conducted CNY61 billion via 7-day reverse repos, with the rate unchanged at 1.50%. The operation led to a net drain of CNY135.5 billion after offsetting maturities of CNY196.5 billion today, according to Wind Information.
RATES: The seven-day weighted average interbank repo rate for depository institutions (DR007) rose to 1.8222% from 1.7530%, Wind Information showed. The overnight repo average increased to 1.6463% from 1.5251%.
YUAN: The currency weakened to 7.0673 to the dollar from the previous 7.0535. The PBOC set the dollar-yuan central parity rate lower at 7.0568 on Wednesday, compared with 7.0709 set on Tuesday. The fixing was estimated at 7.0572 by Bloomberg survey today.
BONDS: The yield on 10-year China Government Bonds was last at 2.1700%, down from the previous close of 2.1700%, according to Wind Information.
STOCKS: The Shanghai Composite Index declined 6.62% to 3,258.86, while the CSI300 index fell 7.05% to 3,955.98. The Hang Seng Index lost 1.38% at 20,637.24.
FROM THE PRESS: Authorities must accelerate the implementation of additional policies to stabilise the economy, ensuring measures already announced take effect while introducing more specific measures as soon as possible, said Premier Li Qiang during a meeting with experts and entrepreneurs. All parties should enhance their sense of urgency and strive to complete the annual growth and development goals, said Li. China will study and reserve policy measures combining next year’s economic work and introduce them in a timely manner according to changes in the economic situation, Li added. (Source: Xinhua News Agency)
China must avoid excessive stock market volatilty in the short term, which will require more precise supervision and expectation management, said 21st Century Business Herald in a commentary. Authorities must strictly prohibit investors from using credit funds to engage in speculation and guard against overseas funds using Hong Kong stocks as leverage to amplify A-share fluctuations through various offshore financial instruments, the newspaper said.
Beijing has urged the U.S. to lift sanctions on Chinese companies as soon as possible and improve the business environment during a phone call between China’s Commerce Minister Wang Wentao and U.S. Secretary of Commerce Gina Raimondo. Wang expressed serious concerns about the U.S.'s semiconductor policy toward China and its restrictions on intelligent connected vehicles, emphasising the need to clarify the national security boundaries in the economic and trade fields. (Source: MOFCOM Website)