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☆ China's bond market is rattled as central bank squares off with bond bulls
▼ + stars: | 2024-08-12 | by ( ) www.cnbc.com time to read: +4 min

A "Buy Treasury bonds" poster is seen at a bank in Haian, East China's Jiangsu province, Aug 1, 2024. "We remain actively bullish," said a bond fund manager, undeterred by unprecedented government moves to cool the sizzling treasury market and arrest a plunge in yields, which move inversely to prices. Falling yields also complicate the People's Bank of China's (PBOC) efforts to stabilize the weakening yuan. Unlike the West, "China's financial markets, including the bond market, are subject to top-down regulation," said Ryan Yonk, economist with the American Institute for Economic Research. Late on Friday, the central bank said it will gradually increase the purchase and sale of treasury bonds in its open market operations.

Persons: Wang Hongfei, Ryan Yonk, Pan Gongsheng, Kiyong Seong, Tan Yiming Organizations: Bank of China's, American Institute for Economic Research, Societe Generale, Minsheng Securities Locations: Haian, East China's Jiangsu, Beijing, Shanghai, China, Asia

☆ Asia stocks fall as Biden drops presidential bid; inflation and GDP data in focus this week
▼ + stars: | 2024-07-22 | by ( Lim Hui Jie | ) www.cnbc.com time to read: +1 min

Aerial view by drone of Tokyo Cityscape with Tokyo Sky Tree visible in Tokyo city, Japan on sunrise. Asia-Pacific markets fell on Monday, as news emerged that U.S. President Joe Biden had dropped out of the presidential race, endorsing Vice President Kamala Harris as the Democratic nominee. On Monday, focus will be on the People's Bank of China's loan prime rate decision, with the one-year and five-year loan prime rate expected to be unchanged at 3.45% and 3.95% respectively, according to economists polled by Reuters. This week, investors will be looking out for GDP data from South Korea and the U.S., as well as factory activity data from around the region. Other economic data this week include inflation numbers from the U.S. and Singapore on Friday and Tuesday, respectively.

Persons: Joe Biden, Kamala Harris, LPR Organizations: Tokyo Cityscape, Democratic, Microsoft, People's Bank, Reuters Locations: Tokyo, Tokyo city, Japan, Asia, Pacific, South Korea, U.S, Singapore

☆ China's fiscal policy is 'increasingly more important,' economist says
▼ + stars: | 2024-02-21 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailChina's fiscal policy is 'increasingly more important,' economist saysWei Yao, head of research and chief economist for Asia-Pacific at Société Générale, discusses the People's Bank of China's decision to cut the country's benchmark five-year loan prime rate for the first time since June, and the limitations the central bank faces in stimulating the economy.

Persons: Wei Yao, Générale Organizations: People's Bank Locations: Asia

☆ Asia markets set to bounce at the start of the week, ahead of China benchmark lending rate release
▼ + stars: | 2023-11-20 | by ( Shreyashi Sanyal | ) www.cnbc.com time to read: +1 min

Investors watch computer screens displaying stock price figures at a stock exchange hall. Jiang Sheng | Visual China Group | Getty ImagesAsia-Pacific markets were mostly set to eke out gains on Monday after most major bourses ended lower in the previous session, while investors watched for changes to China's benchmark lending rates. The People's Bank of China's one-year loan prime rate — the peg for most household and corporate loans in China — is currently at 3.45%. Futures for Hong Kong's Hang Seng index stood at 17,728, pointing to a higher open compared to the HSI's close of 17,454.19. Japan's Nikkei 225 was also set to open slightly lower, with the futures contract in Chicago at 33,500 and its counterpart in Osaka at 33,490 against the index's last close of 33,585.20.

Persons: Jiang Sheng, China —, Alibaba Organizations: Visual China, Getty, People's Bank, Nikkei Locations: Asia, Pacific, China's, China, Hong Kong, Chicago, Osaka, Australia

☆ China central-bank adviser proposes structural reforms to revive economy
▼ + stars: | 2023-09-24 | by ( ) www.reuters.com time to read: +2 min

[1/2] Paramilitary police officers stand guard in front of the headquarters of the People's Bank of China, the central bank (PBOC), in Beijing, China September 30, 2022. REUTERS/Tingshu Wang/File Photo Acquire Licensing RightsSHANGHAI, Sept 24 (Reuters) - China has limited room for further monetary policy easing, and it should pursue structural reforms such as encouraging entrepreneurs rather than counting on macroeconomic policies to revive growth, a central bank adviser said on Sunday. "More importantly, we will again miss the opportunity for structural reforms." Liu proposed on Sunday a new round of structural reforms that could aid the economy immediately, while also injecting long-term growth momentum. Liu said on Sunday that China should give clearer recognition to private businesses' status, both ideologically and politically.

Persons: Tingshu Wang, Liu Shijin, Liu, Jamie Freed Organizations: People's Bank of China, REUTERS, Rights, People's Bank of China's, U.S, Bund Summit, Development Research Center, State Council, Shanghai, Thomson Locations: Beijing, China, Shanghai

☆ Dollar firm as markets eye China data
▼ + stars: | 2023-09-15 | by ( ) www.cnbc.com time to read: +1 min

The dollar was on the front foot in Asia on Friday, retaining overnight gains against peers after strong U.S. economic data and an ECB rate hike, with traders' attention warily turning to a data deluge from China. U.S. retail sales received a boost from higher gasoline prices, increasing 0.6% in August versus an estimated 0.2% rise, while market participants reacted to the European Central Bank's 25-basis point hike. "The data today will be super important," said Rodrigo Catril, senior FX strategist at the National Bank of Australia. The offshore yuan inched further down against the dollar to 7.2918 ahead of the data. "In that sense it means that any disappointment coming out of the data today, we'll likely see the CNY under pressure," with risks to the Aussie and the Kiwi as well, he said.

Persons: Rodrigo Catril, we'll Organizations: Central, U.S, Mizuho Bank, National Bank of Australia, People's Bank of China's, Kiwi Locations: Asia, China . U.S, Thursday's, China

☆ Dollar holds steady, yuan rises on better-than-expected China data
▼ + stars: | 2023-09-15 | by ( Brigid Riley | ) www.reuters.com time to read: +3 min

The U.S. dollar index last stood somewhat lower at 105.32, but still near Thursday's six-month peak of 105.43. The yuan and Australian and New Zealand dollars received a boost after a batch of economic data from China in the Asian morning came in better-than-expected for some key indicators, providing a rare lift in sentiment. The offshore yuan inched up against the dollar to 7.2918 following the release. The Australian dollar , a proxy for China growth, rose nearly 0.3% to $0.6443, while the New Zealand dollar was up 0.2% at $0.5912. The yen stuck near 147.41 per dollar in the Asian morning.

Persons: Dado Ruvic, Rodrigo Catril, Sterling, Simon Harvey, Brigid Riley, Indradip Ghosh, Lincoln, Navaratnam Organizations: REUTERS, Rights, Central, U.S, greenback, New Zealand, People's Bank of China's, National Bank of Australia, Australian, Mizuho Bank, Thomson Locations: Asia, China, Thursday's, Europe

☆ Yellen to attend India G20 summit, focus on economy, climate, Ukraine
▼ + stars: | 2023-08-31 | by ( David Lawder | ) www.reuters.com time to read: +2 min

U.S. Treasury Secretary Janet Yellen addresses the media, along with Indian Finance Minister Nirmala Sitharaman, on the sidelines of a G20 meeting at Gandhinagar, India, July 17, 2023. REUTERS/Amit Dave/File Photo Acquire Licensing RightsWASHINGTON, Aug 31 (Reuters) - U.S. Treasury Secretary Janet Yellen will travel to New Delhi to participate in the G20 leaders summit from Sept. 7-10, making her fourth visit to India in 10 months, the Treasury Department said on Thursday. Yellen intends to focus at the summit on strengthening the global economy and supporting low- and middle-income countries by advancing efforts on debt restructurings, the evolution of multilateral development banks (MDBs) and building International Monetary Fund trust fund resources, the Treasury said. The Treasury said Yellen also will rally America's G20 allies to maintain economic support for Ukraine and increase costs on Russia over Moscow's continuing war in Ukraine. Reporting by David Lawder Editing by Bill BerkrotOur Standards: The Thomson Reuters Trust Principles.

Persons: Janet Yellen, Nirmala Sitharaman, Amit Dave, Yellen, Moscow's, Yi Gang, David Lawder, Bill Berkrot Organizations: Treasury, Indian Finance, REUTERS, Rights, . Treasury, Monetary Fund, Bank, People's Bank of, Thomson Locations: Gandhinagar, India, New Delhi, Ukraine, Russia, China, U.S, Indonesia, People's Bank of China's, Beijing

☆ Smead Capital Management CEO compares China and U.S. markets
▼ + stars: | 2023-08-15 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailSmead Capital Management CEO compares China and U.S. marketsCole Smead, CEO at Smead Capital Management, discusses China's economic outlook in light of the People's Bank of China's decision to cut rates.

Persons: Cole Smead Organizations: Smead Capital, Smead Capital Management, People's Bank Locations: China, U.S

☆ China state banks seen selling US dollars to prop up yuan -sources
▼ + stars: | 2023-07-25 | by ( ) www.reuters.com time to read: +2 min

China's state banks usually trade on behalf of the central bank in the country's foreign exchange market, but they could also trade on their own behalf. Policymakers also said China will keep the yuan exchange rate basically stable at reasonable and balanced levels, and vowed to invigorate the capital market and restore investor confidence. This is in line with the People's Bank of China's (PBOC) further tightening of FX policy recently." The onshore yuan strengthened more than 0.6% to a high of 7.1411 per dollar and was fetching 7.1541 as of 0314 GMT. Its offshore counterpart followed the strengthening trend and surged to a week high of 7.1475 before being last traded at 7.1542.

Persons: Christopher Cushing Organizations: HSBC, People's Bank of China's, greenback, Thomson Locations: SHANGHAI, BEIJING, China, Shanghai, Beijing

☆ China vows to 'adjust and optimize' property policy in 'tortuous' economic recovery
▼ + stars: | 2023-07-24 | by ( Clement Tan | ) www.cnbc.com time to read: +8 min

The post-pandemic economic recovery will proceed in a "wave-like" fashion in a "tortuous" process, it added. On Tuesday, Hong Kong and mainland China stock markets cheered the Politburo's policy pledges, outperforming broader Asia-Pacific benchmarks. The Chinese property sector saw some of the strongest percentage gains in Hong Kong, with developer Country Garden rebounding more than 14% from a nine-month low. By some calculations, the country's property sector still accounts for up to a quarter of China's annual economic activity. Expanding domestic demandLate Monday, China's top leaders pledged to "actively expand domestic demand" and to "expand consumption by raising income levels."

Persons: Xi Jinping, Li Qiang, China Vanke, Goldman Sachs, China's, Julian Evans, Pritchard Organizations: Getty, Communist, Xinhua, Barclays, Index, CSI, Longfor, China Overseas, Observers, Citi, People's Bank, China's, National, Capital Economics Locations: China, Hong Kong, outperforming, Asia

☆ Aussie surges after strong jobs data; China's yuan jumps
▼ + stars: | 2023-07-20 | by ( Rae Wee | ) www.reuters.com time to read: +4 min

"Ultimately, it's another strong set of employment figures which keeps the pressure on a data-dependant (Reserve Bank of Australia) to potentially hike rates in August." The offshore yuan last bought 7.1901 per dollar, while the onshore yuan strengthened past 7.18 per dollar to a session-high of 7.1620. RATES OUTLOOKIn the broader currency market, sterling was nursing deep losses after a sharp fall in the previous session following Britain's inflation data, which undershot market expectations. "The market I think is a bit more reasonable now with its expectations for rate hikes by the BoE. "We thought (the fall) was too strong, so it looks like the dollar has regained some of those losses," said CBA's Capurso.

Persons: David Gray, Matt Simpson, it's, Ken Cheung, BoE, Joseph Capurso, Yannis Stournaras, CBA's Capurso, Rae Wee, Sam Holmes, Jamie Freed Organizations: REUTERS, Australian, New Zealand, Bank of Australia, prudential, U.S ., People's Bank of, Mizuho Bank, Bank of England, Traders, Commonwealth Bank of Australia, Central Bank, U.S, Thomson Locations: Sydney, Australia, SINGAPORE, China, Asia

☆ China's producer prices sink again in June in latest sign of stalled recovery
▼ + stars: | 2023-07-10 | by ( Clement Tan | ) www.cnbc.com time to read: +3 min

Producer prices sank 5.4% in June from a year earlier and slipped 0.8% from a month ago, according to China's National Bureau of Statistics. This was weaker than a Reuters poll that had expected a 5.0% annual decline, compared with the 4.6% annual decline in May. The annual decline in June was China's ninth consecutive drop and its steepest since December 2015. Monthly consumer price inflation in June was weaker 0.2%, weaker than expectations for flat growth and tracking the 0.2% decline in May. But this would still be soft and won't constrain the People's Bank of China's ability to loosen policy further."

Persons: Zhichun Huang, —, Huang, PBOC Organizations: Visual China, Getty, National Bureau of Statistics, Reuters, Bank, People's Bank of China Locations: China, Ukraine

A number of major banks have cut their 2023 gross domestic product growth forecasts for China after May data last week showed the post-COVID recovery in the world's second-largest economy was faltering. The oil and gas rig count, an early indicator of future output, fell by 8 to 687 in the week to June 16, lowest since April 2022. , , . Earlier this month, OPEC+ had agreed on a new oil output deal. The group's biggest producer Saudi Arabia also pledged to make a deep cut to its output in July. Reporting by Katya Golubkova in Tokyo and Emily Chow in Singapore; Editing by Tom HogueOur Standards: The Thomson Reuters Trust Principles.

Persons: Brent, Tina Teng, PBOC, Edward Moya, Moya, Igor Sechin, Sechin, Katya Golubkova, Emily Chow, Tom Hogue Organizations: NK Rosneft, U.S, West Texas, People's Bank of China's, CMC Markets, Reuters, of, Petroleum, Thomson Locations: TOKYO, United States, China, U.S, Russia, OPEC, Saudi Arabia, Tokyo, Singapore

☆ China eyes support for consumer, private sectors as growth falters
▼ + stars: | 2023-06-15 | by ( Kevin Yao | ) www.reuters.com time to read: +5 min

China's cabinet is soliciting proposals from economists and advisers, policy insiders told Reuters, with big changes needing approval from top party leaders, and investors now looking to an expected Politburo meeting in July for clues on policy direction. However, the modest borrowing cost cuts - limited by concerns over banks' profitability and currency stability - will not be enough to boost economic activity, policy insiders said. Authorities are also considering support for the ailing property sector after earlier measures failed to gain traction, including easing credit conditions and home buying curbs in some areas, policy insiders. Economists blame the fading recovery on the "scarring effects" caused by COVID and regulatory curbs on property and tech sectors, which have hit household and private sector spending. Supporting depressed private-sector firms, which account for 60% of economic output and 80% of urban employment, will be essential to lift incomes, jobs and consumption, policy insiders and analysts said.

Persons: Rory Green, Jia Kang, Kevin Yao, Sam Holmes Organizations: quicken, Reuters, People's Bank of China's, TS Lombard, China Academy of New, Economics, Thomson Locations: BEIJING, China, Beijing

☆ Dollar backs down as traders price in a Fed skip
▼ + stars: | 2023-06-14 | by ( Amanda Cooper | ) www.reuters.com time to read: +3 min

In April, the U.S. consumer price index (CPI) logged its smallest year-on-year increase since March 2021 at 4.0%. It's quite a high hurdle for (the Fed) to deliver a hawkish surprise tonight through rhetoric alone," MUFG strategist Lee Hardman said. Unsurprisingly, the dollar has lost the most so far this month against the Australian dollar , which has gained 4.3%, followed by the Canadian dollar , which has risen by 2%. The European Central Bank (ECB) delivers its decision on rates on Thursday, with a quarter-point hike to 3.50% widely expected. Its policymakers have been clear that inflation across the euro zone is too high and the central bank has more work to do.

Persons: Lee Hardman, Francesco Pesole, Sterling, Kevin Buckland, Kim Coghill, Mark Potter, Chizu Organizations: Federal Reserve, Reserve Bank of Australia, Bank of Canada, Bank of England, Canadian, European Central Bank, Fed, ECB, ING, The Bank of, People's Bank, Thomson Locations: U.S, The Bank of Japan, Tokyo

This week it hit a six-month low on the dollar after surprise cuts to key China rates, putting the gap between 10-year sovereign yields in China and the U.S. at its widest since November. The position, with China's rates below those in the United States , is the reverse of more than a decade of high-growth that saw China paying better yields than markets in the west. "The People's Bank of China's tolerance of currency weakness ... also opens up room for further yuan weakness." Even if the Federal Reserve holds rates steady later on Wednesday, as expected, traders are braced for an extended period of elevated U.S. interest rates and, increasingly, for China to hold rates low or push them even lower. Analysts polled by Reuters expect the PBOC will cut the costs of medium-term loans on Thursday and many market watchers expect a benchmark lending rate cut next week.

Persons: hasn't, Morgan, J.P, Tommy Xie, Kiyong Seong, Winni Zhou, Brenda Goh, Tom Westbrook, Kim Coghill Organizations: Bond, People's Bank, People's Bank of China, Federal Reserve, Reuters, Authorities, OCBC Bank, Societe Generale, Thomson Locations: SHANGHAI, SINGAPORE, China, U.S, Beijing, United States, Asia, Shanghai, Singapore

☆ Dollar droops as bets build for Fed pause, yuan at 6-mth low
▼ + stars: | 2023-06-14 | by ( Kevin Buckland | ) www.reuters.com time to read: +3 min

The dollar index - which measures the currency against six major peers, including the euro and sterling - was little changed at 103.29 in early Asian trading, after dipping to the lowest since May 22 overnight at 103.04. "Whilst it was enough to send EUR/USD above 1.0800, it wasn't enough to keep it there given a hawkish pause seems quite likely." The European Central Bank decides policy on Thursday, with a quarter-point rate hike widely expected. The Australian dollar was flat at $0.6768, after reaching the highest since May 10 on Tuesday at $0.6807. The yuan weakened slightly and touched 7.1785 per dollar in offshore trading for the first time since Nov. 29.

Persons: Matt Simpson, Kevin Buckland, Jacqueline Wong Organizations: Federal Reserve, City Index, European Central Bank, Sterling, Bank of Japan, People's Bank, Thomson Locations: TOKYO, U.S, China

Aerial view of shipping containers sitting stacked at Yangshan Deepwater Port, the world's biggest automated container terminal, on May 21, 2021 in Shanghai, China. Policy support"China could at least be a relative 'safe haven' given its growth premium, financial soundness, policy discipline and the new political economy cycle," Citi economists said. The RRR is a measure of how much cash banks in China need to have on hand. Since the pandemic started, mainland China has kept relatively easy monetary policy while not announcing major stimulus packages — such as large cash handouts to consumers. "With the unintended and undesirable from aggressive interest rate hikes surfacing abroad, capital inflows into China could resume after the reopen trade if the recovery thesis plays out and political rerating is steadily ongoing," Citi economists wrote.

☆ China plans to revamp finance, tech oversight
▼ + stars: | 2023-03-08 | by ( Evelyn Cheng | ) www.cnbc.com time to read: +6 min

Lintao Zhang | Getty Images News | Getty ImagesBEIJING — China plans to overhaul its financial regulatory system by consolidating aspects of the central bank and securities regulator under a new entity, while doing away with the existing banking regulator. The moves also come as Beijing has increased regulation on parts of the economy that had developed quickly, with little oversight. The latest plan calls for the establishment of a National Financial Regulatory Administration, which replaces the China Banking and Insurance Regulatory Commission and expands its role. watch nowThe China Securities Regulatory Commission's investor protection responsibilities are set to shift to the new financial regulator. "China's consolidated financial regulatory body is [a] paradigm shift to ramp up oversight of its vast financial system," said Winston Ma, adjunct professor of law at New York University.

☆ Oil prices little changed, nurse last week's losses on improved supplies
▼ + stars: | 2023-02-20 | by ( Florence Tan | ) www.reuters.com time to read: +2 min

The benchmarks closed lower by about 4% last week after the United States reported higher crude and gasoline inventories. Expectations that the U.S. Federal Reserve will continue raising interest rates which could strengthen the dollar also capped oil prices. China is the world's largest crude oil importer. China, along with India, have become top buyers of Russian crude following the European Union embargo. India's Russian oil imports hit a record 1.4 million barrels per day in January, trade data showed.

☆ China to expand bond financing by private firms, including developers
▼ + stars: | 2022-11-08 | by ( ) www.reuters.com time to read: 1 min

Nov 8 (Reuters) - The self-regulatory body of China's interbank market said on Tuesday it will expand bond financing for private firms, including developers, with support from the central bank. The debt financing tools, dubbed "the second arrow" and supported by People's Bank of China's refinancing, were launched in 2018. The National Association of Financial Market Institutional Investors (NAFMII) said on Tuesday the scheme is expected to support about 250 billion yuan ($34.47 billion) of bond financing by private firms, and will be expanded further if needed. ($1 = 7.2527 Chinese yuan renminbi)Reporting by Shanghai and Beijing newsroomOur Standards: The Thomson Reuters Trust Principles.

MUMBAI, Oct 25 (Reuters) - The Indian rupee is expected to open slightly lower versus the dollar on Tuesday after the offshore Chinese yuan tumbled to a lifetime low. The rupee is tipped to open at around 82.74-82.76 per U.S. dollar, compared with 82.6750 on Friday. Meanwhile, the dollar index dipped in Asia trading, adding to is recent losses on bets that the U.S. Federal Reserve will deliver a small rate hike in December. If it were not for yuan, the rupee would have had "had a decent opening" considering the "slightly less" hawkish Fed outlook, a trader at a Mumbai-based bank said. Another fall in India's foreign exchange "is probably another problem" for the rupee, the trader said.

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