MNI BRIEF: Canadians Fuzzy On How BOC Hikes Slow CPI, Government's Role

CANADA FLASH MAY GDP +0.1% ON FACTORIES AND REAL ESTATE

MNI China Daily Summary: Friday, June 28

MNI BRIEF: BCB Evaluating Real Depreciation Impacts - Galipolo

MNI BRIEF: PBOC Pledges to Curb Any Overshoot Of The Yuan: MPC

MNI: PBOC Net Injects CNY40 Bln Via OMO Fri; Rates Unchanged

MNI: BAKER HUGHES US RIG COUNT 581; OIL RIGS 479; GAS RIGS 97

EZ/UK T-Bill Calendar: Germany, France Auction on Monday

EZ/UK Bond Supply Calendar: BoE APF on Monday

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

MNI China Press Digest June 26: Trade-ins, Local Bonds, Debts

MNI (Singapore)
MNI (Beijing)

MNI picks key stories from today's China press

Policy NewsHomepageCentral Bank NewsPBOCAPACChinaStoryBond Market NewsEM Policy NewsEM Policy StoryEM Central Bank NewsPeoples Bank of ChinaPolicy StoryRegion
True

Highlights from Chinese press reports on Wednesday:

  • Officials will accelerate trade-in schemes for old products after China recycled 55.6% more cars in May year-on-year, according to Xu Xingfeng, director at the Ministry of Commerce's Consumer Promotion Department. So far, local governments have arranged about CNY9 billion to support automobile trade-ins, while the Ministry of Finance has issued CNY6.44 billion. From January to May, major e-commerce platforms increased trade-in sales of home appliances by 81.8% y/y. (Source: 21st Century Business Herald)
  • Local-government bond issuance will peak in Q3 with over CNY2 trillion deals planned to be issued, which will greatly support infrastructure investment, China Securities Journal reported. A total of CNY2.36 trillion bonds are planned to be issued by 27 regions, with Sichuan, Guangdong, and Hunan provinces all exceeding CNY100 billion, the newspaper said. National Development and Reform Commission said it has finished the screening of 2024 local special-bond projects, which means physical workload will be form at a faster pace and infrastructure investment will keep stabilising the economy, said Feng Ling, head of research at Golden Credit Rating.
  • Local governments have made phased progress in resolving implicit debts, but illegal borrowing has not been completely curbed, Caixin reported citing a report by the National Audit Office. Some regions with high debt levels still relied on high-interest, non-standard borrowing, or overseas bonds to sustain payment of previous non-standard private placement bonds issued by local-government financing vehicles, Caixin said. The audit report also disclosed for the first time that state-owned enterprises in 24 regions raised more than CNY11.2 billion implicit debts by illegally issuing financial products on local financial asset exchanges or public fund-raising.
278 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.

Highlights from Chinese press reports on Wednesday:

  • Officials will accelerate trade-in schemes for old products after China recycled 55.6% more cars in May year-on-year, according to Xu Xingfeng, director at the Ministry of Commerce's Consumer Promotion Department. So far, local governments have arranged about CNY9 billion to support automobile trade-ins, while the Ministry of Finance has issued CNY6.44 billion. From January to May, major e-commerce platforms increased trade-in sales of home appliances by 81.8% y/y. (Source: 21st Century Business Herald)
  • Local-government bond issuance will peak in Q3 with over CNY2 trillion deals planned to be issued, which will greatly support infrastructure investment, China Securities Journal reported. A total of CNY2.36 trillion bonds are planned to be issued by 27 regions, with Sichuan, Guangdong, and Hunan provinces all exceeding CNY100 billion, the newspaper said. National Development and Reform Commission said it has finished the screening of 2024 local special-bond projects, which means physical workload will be form at a faster pace and infrastructure investment will keep stabilising the economy, said Feng Ling, head of research at Golden Credit Rating.
  • Local governments have made phased progress in resolving implicit debts, but illegal borrowing has not been completely curbed, Caixin reported citing a report by the National Audit Office. Some regions with high debt levels still relied on high-interest, non-standard borrowing, or overseas bonds to sustain payment of previous non-standard private placement bonds issued by local-government financing vehicles, Caixin said. The audit report also disclosed for the first time that state-owned enterprises in 24 regions raised more than CNY11.2 billion implicit debts by illegally issuing financial products on local financial asset exchanges or public fund-raising.