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MNI China Press Digest Oct 8: Capital Market, FX, Housing

MNI picks key stories from today's China press.
Central Bank NewsPolicy NewsPBOCHomepageAPACChinaEM Policy NewsChinaEM Central Bank NewsPeoples Bank of ChinaGlobalStoryRegion

MNI (BEIJING) - Highlights from Chinese press reports on Tuesday:

  • The People's Bank of China’s latest facilities to support the capital market will not lead to an injection of base currency or balance-sheet expansion, while investors should consider their risk tolerance, wrote Xu Zhong, vice president at the National Association of Financial Market Institutional Investors. Financial institutions should strengthen internal control and compliance responsibilities, warn individual investors of risks, and strictly prevent credit funds from flowing into the stock market in disguise of consumer loans, according to Xu. (Source: Securities Times)
  • China’s foreign exchange reserves were USD3.32 trillion at the end of September, rising above the USD3.3 trillion mark again for the first time since December 2015, Securities Times reported citing data by the State Administration of Foreign Exchange. This was mainly due to a 0.96% decline in the U.S. dollar index over the month, alongside an appreciation of onshore yuan by 725 basis points against the greenback, the newspaper said. The accelerated allocation of Chinese assets by foreign investors following the country’s latest pro-growth measures has also provided strong support for FX stability, as the yuan continues to rise and banks' forex settlement and sales on behalf of customers have turned into a surplus, the Times said citing Wen Bin, chief economist at China Minsheng Bank.
  • Local housing markets heated up during the Golden Week holiday with the number of inquiries for home purchases rising, as over 130 cities launched sales promotions, Shanghai Securities News reported. A leading housing developer said visitors to its 49 projects in 12 key cities increased 79% when compared with the Mid-Autumn Festival, while the average subscription rose by 121%. Housing prices in core cities are expected to stabilise and the bottoming out of major cities will further drive the national market, the newspaper said citing Chen Wenjing, research director at China Index Academy.
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MNI (BEIJING) - Highlights from Chinese press reports on Tuesday:

  • The People's Bank of China’s latest facilities to support the capital market will not lead to an injection of base currency or balance-sheet expansion, while investors should consider their risk tolerance, wrote Xu Zhong, vice president at the National Association of Financial Market Institutional Investors. Financial institutions should strengthen internal control and compliance responsibilities, warn individual investors of risks, and strictly prevent credit funds from flowing into the stock market in disguise of consumer loans, according to Xu. (Source: Securities Times)
  • China’s foreign exchange reserves were USD3.32 trillion at the end of September, rising above the USD3.3 trillion mark again for the first time since December 2015, Securities Times reported citing data by the State Administration of Foreign Exchange. This was mainly due to a 0.96% decline in the U.S. dollar index over the month, alongside an appreciation of onshore yuan by 725 basis points against the greenback, the newspaper said. The accelerated allocation of Chinese assets by foreign investors following the country’s latest pro-growth measures has also provided strong support for FX stability, as the yuan continues to rise and banks' forex settlement and sales on behalf of customers have turned into a surplus, the Times said citing Wen Bin, chief economist at China Minsheng Bank.
  • Local housing markets heated up during the Golden Week holiday with the number of inquiries for home purchases rising, as over 130 cities launched sales promotions, Shanghai Securities News reported. A leading housing developer said visitors to its 49 projects in 12 key cities increased 79% when compared with the Mid-Autumn Festival, while the average subscription rose by 121%. Housing prices in core cities are expected to stabilise and the bottoming out of major cities will further drive the national market, the newspaper said citing Chen Wenjing, research director at China Index Academy.