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(Z1) Off Lows, But Remains Weak


Still Vulnerable


Bullish Price Sequence

CHINA PRESS: The People's Bank of China may not conduct open market operations
(OMO) again until December, according to a report in the China Securities
Journal. Citing analysts, the Journal's report says that although the PBOC has
suspended the OMO for 5 days, liquidity has been stable. Since fiscal spending
is expected at the end of the month, liquidity will continue to be adequate.
China Securities Journal also reports that the Finance Ministry of China has
allocated quotas for next year's Government Special Purpose Bonds to provinces.
The report said it is still not clear whether the government will move next
year's bond sales to this year. Zhang Xu, the Chief Analyst with Everbright
Securities, forecast an increase in these bonds next year.
More medium and small banks in China are expected to issue perpetual bonds as
the central bank pushes them to recapitalize, Shanghai Securities News reports.
Two regional banks - Huishang Bank and Taizhou Bank - have been approved to
issue bonds to replenish capital.