MNI: PBOC Net Drains CNY0.8 Bln via OMO Thursday

MNI: PBOC Sets Yuan Parity Higher At 7.1712 Thurs; -1.19% Y/Y

MNI BRIEF: China Feb LPR Remains Unchanged

MNI: Fed Can Take Time On Next Rate Cut - Jefferson

MNI China Daily Summary: Wednesday, February 19

MNI BRIEF: China Jan Utilised FDI Lower Than Last Year

MNI:AUSTRALIA JAN UNEMPLOYMENT RATE +4.1%

FED MINUTES: WANT FURTHER DISINFLATION BEFORE NEXT CUT

MNI: US REDBOOK: FEB STORE SALES +5.8% V YR AGO MO

GERMANY: Economy Ministry Lowers 2025 Growth Forecast As Expected

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

GERMANY: Kukies Considers Potential Non-Implementation Of 2024 Suppl' Budget

© 1982-2025 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

MNI China Press Digest Feb 17: PBOC, Credit Demand, Huijin

MNI picks keys stories from today's China press
Central Bank NewsPolicy NewsPBOCAPACChinaEM Policy NewsChinaEM Central Bank NewsPeoples Bank of ChinaPolicy StoryStoryRegion
MNI (BEIJING)

Highlights from Chinese press reports on Monday:

  • The People’s Bank of China is expected to prioritise structural tools including the Reserve Requirement Ratio over aggregate tools such as interest rate cuts in 2025, as the central bank remains concerned over banks’ net interest margin, according to Guan Tao, former senior official at the State Administration of Foreign Exchange. A downward trend in bank liability costs may be a leading indicator for central bank interest rate cuts this year, Guan added. Chinese banks earn more than 70% of operating income from interest, unlike U.S. and European banks which earn around half, Guan observed.
  • Residents’ credit demand remained weak in January despite corporate activity driving new yuan loans to a record high of CNY5.13 trillion, Yicai.com reported, citing analysts. While enterprise loans increased by CNY920 billion when compared to Jan 2024, household loans saw a year-on-year decrease of CNY536 billion, mainly due to mediocre home sales, while the reduction in outstanding mortgage rates also significantly reduced demand for business loans to replace mortgages, Yicai said citing Huaxi Securities analyst Xiao Jinchuan.
  • Several Chinese financial institutions announced plans to transfer shares to Central Huijin Investment to make the sovereign fund company a controlling shareholder, Economic Information Daily reported. Among the five, three are national asset management companies, including China Cinda, China Orient and China Great Wall, as well as China Securities Finance and China Agricultural Reinsurance. The transfer of equity aims to optimise the governance structure of state-owned financial institutions, strengthen the centralised management of state-owned capital and the ability to integrate resources, and avoid deviating from their core business, the newspaper said citing Zeng Gang, director of the Shanghai Institution For Finance and Development.
280 words

To read the full story

Close

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.
MNI (BEIJING)

Highlights from Chinese press reports on Monday:

  • The People’s Bank of China is expected to prioritise structural tools including the Reserve Requirement Ratio over aggregate tools such as interest rate cuts in 2025, as the central bank remains concerned over banks’ net interest margin, according to Guan Tao, former senior official at the State Administration of Foreign Exchange. A downward trend in bank liability costs may be a leading indicator for central bank interest rate cuts this year, Guan added. Chinese banks earn more than 70% of operating income from interest, unlike U.S. and European banks which earn around half, Guan observed.
  • Residents’ credit demand remained weak in January despite corporate activity driving new yuan loans to a record high of CNY5.13 trillion, Yicai.com reported, citing analysts. While enterprise loans increased by CNY920 billion when compared to Jan 2024, household loans saw a year-on-year decrease of CNY536 billion, mainly due to mediocre home sales, while the reduction in outstanding mortgage rates also significantly reduced demand for business loans to replace mortgages, Yicai said citing Huaxi Securities analyst Xiao Jinchuan.
  • Several Chinese financial institutions announced plans to transfer shares to Central Huijin Investment to make the sovereign fund company a controlling shareholder, Economic Information Daily reported. Among the five, three are national asset management companies, including China Cinda, China Orient and China Great Wall, as well as China Securities Finance and China Agricultural Reinsurance. The transfer of equity aims to optimise the governance structure of state-owned financial institutions, strengthen the centralised management of state-owned capital and the ability to integrate resources, and avoid deviating from their core business, the newspaper said citing Zeng Gang, director of the Shanghai Institution For Finance and Development.