Free Trial
JGBS AUCTION

The Japanese MOF sells Y2.1822tn 10-Year JGBs:

US TSYS

A Little Off Cheapest Levels

KRW

KRW Lagging Equities, JPY A Headwind

JGBS AUCTION

PREVIEW: 10-Year JGB Supply Due

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

MNI China Press Digest May 9: Weaker Yuan, Re-lending, Growth

MNI (Singapore)

MNI picks keys stories from today's China press

True

The following lists highlights from Chinese press reports on Monday:

  • The yuan may continue to weaken with the narrowing of interest spreads between China and foreign countries and volatility of cross-border capital flows, though it is unlikely to depreciate significantly as forex regulators have sufficient tools to keep it at a reasonable level, the China Securities Journal reported citing analysts. The central bank is expected to maintain yuan flexibility and promote the self-balancing of the forex market by adjusting supply and demand, the newspaper cited analysts as saying. The Journal noted that introducing counter-cyclical factors in the CNY central parity rate, adjusting the risk reserve ratio for forward forex sales as well as the liquidity of offshore yuan trade are options.
  • The People’s Bank of China will soon launch a CNY100 billion re-lending programme to support transport, logistics and warehousing finance to smoothen the impact of pandemic curb measures, according to an article by the research wing of the PBOC’s Monetary Policy Committee published on a WeChat blog. Re-lending and re-discounts will be used to strengthen wholesale and retail sectors, hotels and catering and tourism with targeted tools to inject liquidity and boost credit, the article said. By end-March, the national re-lending and re-discount balance reached CNY2.47 trillion, according to the article.
  • China will strengthen macro policy to stabilise economic growth with expansionary plans in boosting infrastructure investment and consumption as well as targeted monetary tools likely to be introduced, the Economic Information Daily reported citing Zhong Zhengsheng, chief economist of Ping An Securities. Local authorities are striving to stabilise Q2 GDP growth, mainly by ensuring major projects are kicked off as early as possible as well as increasing the security and stability of supply chains, the newspaper said.
294 words

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.

The following lists highlights from Chinese press reports on Monday:

  • The yuan may continue to weaken with the narrowing of interest spreads between China and foreign countries and volatility of cross-border capital flows, though it is unlikely to depreciate significantly as forex regulators have sufficient tools to keep it at a reasonable level, the China Securities Journal reported citing analysts. The central bank is expected to maintain yuan flexibility and promote the self-balancing of the forex market by adjusting supply and demand, the newspaper cited analysts as saying. The Journal noted that introducing counter-cyclical factors in the CNY central parity rate, adjusting the risk reserve ratio for forward forex sales as well as the liquidity of offshore yuan trade are options.
  • The People’s Bank of China will soon launch a CNY100 billion re-lending programme to support transport, logistics and warehousing finance to smoothen the impact of pandemic curb measures, according to an article by the research wing of the PBOC’s Monetary Policy Committee published on a WeChat blog. Re-lending and re-discounts will be used to strengthen wholesale and retail sectors, hotels and catering and tourism with targeted tools to inject liquidity and boost credit, the article said. By end-March, the national re-lending and re-discount balance reached CNY2.47 trillion, according to the article.
  • China will strengthen macro policy to stabilise economic growth with expansionary plans in boosting infrastructure investment and consumption as well as targeted monetary tools likely to be introduced, the Economic Information Daily reported citing Zhong Zhengsheng, chief economist of Ping An Securities. Local authorities are striving to stabilise Q2 GDP growth, mainly by ensuring major projects are kicked off as early as possible as well as increasing the security and stability of supply chains, the newspaper said.