Free Trial
USDJPY TECHS

Resumes Its Uptrend

COLOMBIA

Central Bank Rate Decision Was Unanimous

EURGBP TECHS

Bullish Focus

US EURODLR OPTIONS

BLOCK, Serial Call Fly

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 25: Yuan, Credit Expansion, A-Share

MNI (Singapore)
BEIJING (MNI)

MNI picks keys stories from today's China press

True

The following lists highlights from Chinese press reports on Wednesday:

  • More foreign investment institutions set yuan equilibrium levels at CNY6.5 to CNY6.6 against the U.S. dollar, over 2,000 basis points higher than that at end-April, the 21st Century Business Herald reported citing traders. The falling dollar index has driven the yuan rally in the past week, but more importantly, overseas investors are correcting previous mispricing following China’s proactive moves to stabilise growth and resume production from Covid-19 lockdowns. Overseas institutions prefer the relatively stable economic fundamentals of China, as the Fed’s continuous rate hikes increase the risk of U.S. recession, the newspaper said citing an unnamed hedge fund manager.
  • China’s monetary policy has ample space and diversified tools to push the economy back to a normal track with the priority to drive credit expansion to boost SME loans, the China Securities Journal reported citing analysts. The People’s Bank of China has doubled the amount of supporting tools for SME loans, and it is expected to provide as much as 2% of the incremental balance of SME loans to local banks, the newspaper said citing analysts. The central bank will maintain ample liquidity and not rule out further RRR cuts and expansion of re-lending and re-discount quotas, the newspaper said citing Gao Ruidong, chief macroeconomist of Everbright Securities.
  • The A-share market is still grinding at the bottom with the Shanghai Composite Index likely to fluctuate between 2,900 to 3,200 points, though better than the risk aversion and panic environment in the first four months, the National Business Daily reported citing Fang Yi, chief strategy officer of Guotai Junan. A total of 2,934 A-shares fell by more than 4% on Tuesday, accounting for 62.8% of all A-shares still trading, and the Shanghai Composite Index saw the biggest drop since May to 3,070.93, the newspaper said. The decline was led by emerging tech stocks, and any rebounds may depend on how global inflation and China-U.S. relations go, the newspaper said citing analysts.
334 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 Wednesday:

  • More foreign investment institutions set yuan equilibrium levels at CNY6.5 to CNY6.6 against the U.S. dollar, over 2,000 basis points higher than that at end-April, the 21st Century Business Herald reported citing traders. The falling dollar index has driven the yuan rally in the past week, but more importantly, overseas investors are correcting previous mispricing following China’s proactive moves to stabilise growth and resume production from Covid-19 lockdowns. Overseas institutions prefer the relatively stable economic fundamentals of China, as the Fed’s continuous rate hikes increase the risk of U.S. recession, the newspaper said citing an unnamed hedge fund manager.
  • China’s monetary policy has ample space and diversified tools to push the economy back to a normal track with the priority to drive credit expansion to boost SME loans, the China Securities Journal reported citing analysts. The People’s Bank of China has doubled the amount of supporting tools for SME loans, and it is expected to provide as much as 2% of the incremental balance of SME loans to local banks, the newspaper said citing analysts. The central bank will maintain ample liquidity and not rule out further RRR cuts and expansion of re-lending and re-discount quotas, the newspaper said citing Gao Ruidong, chief macroeconomist of Everbright Securities.
  • The A-share market is still grinding at the bottom with the Shanghai Composite Index likely to fluctuate between 2,900 to 3,200 points, though better than the risk aversion and panic environment in the first four months, the National Business Daily reported citing Fang Yi, chief strategy officer of Guotai Junan. A total of 2,934 A-shares fell by more than 4% on Tuesday, accounting for 62.8% of all A-shares still trading, and the Shanghai Composite Index saw the biggest drop since May to 3,070.93, the newspaper said. The decline was led by emerging tech stocks, and any rebounds may depend on how global inflation and China-U.S. relations go, the newspaper said citing analysts.