MNI BRIEF: BOC Cutting To 3% Next Year, Ex Governor Dodge Says

MNI BRIEF: Output Gap Shut, Wage Growth Too Fast - BOE Greene

BRIEF: EU-Mercosur Deal In Final Negotiations - EC

MNI China Daily Summary: Thursday, Dec 5

MNI BRIEF: China Construction Output Slows In November

MNI: PBOC Net Drains CNY153 Bln via OMO Thursday

US EIA:NAT GAS STORAGE -30 BCF TO 3,937 BCF NOV 29 WK

MNI: CANADIAN OCT TRADE BALANCE CAD -0.9 BILLION

MNI: US OCT TRADE GAP -$73.8B VS SEP -$83.8B

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

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

TD on China Flows And CNY

CHINA
  • China appears to have now stopped publishing the data, but April saw a third straight month of foreign investor bond outflows to the tune of $16.4bn following outflows of $17.7bn and $12.7bn in March and February, respectively.
  • In total, China has seen a record net $36.5bn in bond outflows YTD compared to inflows of $56.1bn over the same period last year, a stark reversal.
  • Relatively higher US rates, weaker CNY, constrained credit growth and investor concerns over China's neutral stance on the war in Ukraine, have combined to hurt foreign investor sentiment towards China's markets.
  • While the pace of outflows is likely to slow, foreign investors are unlikely to rush back into Chinese bonds.
  • Equity flows have also registered renewed weakening; YTD stock connect outflows total $6.0bn vs. inflows of $21.2bn in the same period last year. Hedge funds positioning in Chinese bonds weakened sharply but may have bottomed.
  • Weak portfolio flows, likely worsening in China's current account and likely slower direct investment flows, mean that underlying support for CNY has worsened, leaving the currency vulnerable to further depreciation.
Energy BulletsCommodities
Energy BulletsCommodities

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.