PBOC Sees Overall Liquidity Stable, China's Crackdown On Tech Firms Continues

Spot USD/CNH trades at CNH6.4804, just 10 pips lower on the day, having shrugged off the PBOC fix. China's central bank set its central USD/CNY mid-point at CNY6.4785, i.e. 19 pips above sell-side estimate.

• The Financial News cited a policy advisor to the PBOC as noting that the RRR cut delivered by the central bank last week will not undermine the stability of the overall liquidity in China's markets. The official noted that the resultant liquidity injection is expected to offset the impact of maturing medium-term loans, gov't bond sales and tax payments.
• China opened a new chapter in its crackdown on tech giants, noting that all companies holding data on more than 1mn users will now have to apply for special cybersecurity review before applying for an IPO overseas. Meanwhile, Chinese regulators blocked a merger of two game-streaming platforms backed by Tencent.
• The Chinese docket is virtually empty today, but participants eye tomorrow's release of the June trade report. Looking further afield, Q2 GDP and June economic activity indicators hit the wires on Thursday.
• Bears would be pleased by a retreat under Jul 6 low of CNH6.4586, which would shift focus to Jun 25 low of CNH6.4520. Conversely, a jump above the CNH6.5000 mark (the rate struggled to make much headway beyond there over the last two trading days) would bring the 200-DMA at CNH6.5130 into play.