DIRS.INFO The most relevant business & tech news

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

☆ China central bank seen cutting medium-term policy rate: Reuters poll
▼ + stars: | 2023-06-14 | by ( ) www.reuters.com time to read: +2 min

SHANGHAI/SINGAPORE, June 14 (Reuters) - China's central bank is widely expected to cut the borrowing cost of medium-term policy loans for the first time in 10 months on Thursday, after it lowered two key short-term policy rates, a Reuters poll showed. China remains an outlier among global central banks as it loosens monetary policy to shore up a stalling recovery but further rate cuts will widen the yield gap with U.S. assets and risk greater outflows. The MLF rate serves as a guide to the benchmark loan prime rate (LPR), and markets usually use the medium-term rate as a precursor to any changes to the lending benchmark. Looking ahead, we expect another 10bp cut in the MLF rate in 3Q23." The PBOC last cut the MLF rate in August 2022 to prop up the broad economy disrupted by stringent zero-COVID measures.

Persons: Ting Lu, Larry Hu, Wu Fang, Winni Zhou, Tom Westbrook, Jacqueline Wong Organizations: People's Bank of China, Nomura, Macquarie, Thomson Locations: SHANGHAI, SINGAPORE, China, lockstep

☆ Chinese automaker BYD reopens two Hong Kong showrooms after vandalism
▼ + stars: | 2023-06-14 | by ( ) www.reuters.com time to read: +1 min

[1/2] A woman walks past a splattered BYD store while police cordons are visible at the scene in Hong Kong, China June 12, 2023. REUTERS/Joyce Zhou/File PhotoCompanies BYD Co Ltd FollowHONG KONG, June 14 (Reuters) - Chinese automaker BYD Co Ltd has restarted operations at two showrooms and a service centre in Hong Kong after they were vandalised earlier this week, BYD's sole agent said in a notice on its website on Wednesday. Its showrooms in the districts of Wan Chai on Hong Kong island and Tsim Sha Tsui in Kowloon, as well as its service centre in Tin Shui Wai in the New Territories, had resumed normal operations, it added. JC Motor did not immediately respond to Reuters' request for comment on the cause and impact of the vandalism. Two BYD showrooms and a service centre in Hong Kong were daubed with red paint, while a car also rammed into the roller shutter at its Yuen Long showroom in the early hours of Monday, causing damage, police told Reuters.

Persons: Joyce Zhou, BYD's, Yuen Long, JC, Donny Kwok, Jacqueline Wong Organizations: REUTERS, BYD, Motor, JC, Reuters, Thomson Locations: Hong Kong, China, HONG KONG, Yuen, New Territories, Wan Chai, Sha Tsui, Kowloon, Tin Shui

☆ Russia's isolation from the global economy causes poor turnout at Putin's economic forum
▼ + stars: | 2023-06-14 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +2 min

Russia's isolation from the global economy caused poor turnout at Putin's economic forum in St. Petersburg. The event previously drew big names from the West, but was mostly populated by lower-level politicians this time. Experts have sounded the alarm on Russia's economy amid Ukraine war sanctions. But experts have warned that the moat between Russia and Western world could be lethal to Russia's economy. Though some prognosticators see Russia's economy posting small growth this year, those estimates are largely based on the Kremlin's "cherry-picked" statistics, according to two Yale researchers, who recently made the case that Russia's economy is struggling far more than Putin has let on so far.

Persons: —, Vladimir Putin's, Emmanuel Macron, Angela Merkel, Zhang Hanhui, Zhou Liqun, Putin Organizations: Service, Bloomberg, Union of Chinese Entrepreneurs, Yale Locations: St . Petersburg, Ukraine, Soviet Union, America, Asia, Russia, China, Moscow, Western

☆ Formula One statistics for the Canadian Grand Prix
▼ + stars: | 2023-06-14 | by ( ) www.reuters.com time to read: +3 min

[1/3] Formula One F1 - Canadian Grand Prix - Circuit Gilles Villeneuve, Montreal, Canada - June 19, 2022 Red Bull's Max Verstappen in action during the race REUTERS/Chris Helgren/File PhotoJune 14 (Reuters) - Statistics for Sunday's Canadian Grand Prix at Montreal's Circuit Gilles Villeneuve, race eight of the 22-round Formula One season:Lap distance: 4.361km. Start time: 1800GMT (1400 local)CANADAThis weekend will be the 52nd Canadian Grand Prix, and 42nd in Montreal. Hamilton has won seven times in Montreal (in 2007, 2010, 2012, 2015, 2016, 2017, 2019), including the first of his career. The rain-hit Canadian Grand Prix of 2011 was Formula One's longest race, lasting four hours, four minutes and 39.537 seconds. MILESTONEAlphaTauri's Yuki Tsunoda is starting his 50th grand prix.

Persons: Gilles Villeneuve, Max Verstappen, Chris Helgren, Montreal's Circuit Gilles Villeneuve, Red Bull, Valtteri, Montreal . Hamilton, Michael Schumacher, Fernando Alonso, McLaren, Aston, Lance, Jacques Villeneuve, Verstappen, Ayrton Senna, Bull, Hamilton, Aston Martin's Alonso, Leclerc, Sergio Perez, Aston Martin, Mercedes, Perez, Romeo's, Zhou, George Russell, Yuki Tsunoda, Alfa, Alan Baldwin, Toby Davis Organizations: Prix, Sunday's, Montreal's Circuit, Ferrari, One's, WINS, Bull, Formula One, Spanish, Aston, Alfa Romeo, Thomson Locations: Montreal, Canada, Netherlands, Finland, Montreal ., Canadian, Barcelona, Saudi Arabia, Azerbaijan, London

"The central bank's rate cut decision was not a complete surprise to the market," said Ken Cheung, chief Asian FX strategist at Mizuho Bank. Further interest rate cuts in China would only widen the yield gap with the United States, even if the Fed pauses this week, sending the yuan lower and accelerating capital outflows. Tuesday's rate cut suggests policymakers are increasingly worried about the health of China's recovery, traders and analysts said. Bloomberg reported on Tuesday, citing unnamed sources, that China was considering at least a dozen stimulus measures including cuts to interest rates to support areas such as real estate and domestic demand. "There could be another RRR or policy interest rate cut in Q4, depending on the economic outcome over the next several months."

Persons: Ken Cheung, Yi Gang, Cheung, Marco Sun, Frances Cheung, Goldman Sachs, Winni Zhou, Tom Westbrook, Sam Holmes, Jacqueline Wong Organizations: People's Bank of China, Mizuho Bank, MUFG Bank, Bloomberg, OCBC Bank, Thomson Locations: SHANGHAI, SINGAPORE, China, United States, outflows

☆ China cuts short-term borrowing costs as economy slows
▼ + stars: | 2023-06-13 | by ( ) www.reuters.com time to read: +4 min

SummarySummary Companies PBOC lowers 7-day reverse repo to 1.9% vs. 2.0% prev. The People's Bank of China (PBOC) cut its seven-day reverse repo rate by 10 basis points to 1.90% from 2.00% on Tuesday, when it injected 2 billion yuan ($279.97 million) through the short-term bond instrument. "The central bank's rate cut decision was not a complete surprise to the market," said Ken Cheung, chief Asian FX strategist at Mizuho Bank. Tuesday's rate cut suggests policymakers are increasingly worried about the health of China's recovery, traders and analysts said. "However, the market is expecting the PBOC to cut the policy rate further.

Persons: 10bp, Ken Cheung, Yi Gang, Cheung, Marco Sun, Frances Cheung, Julian Evans, Pritchard, Winni Zhou, Tom Westbrook, Kim Coghill, Sam Holmes Organizations: People's Bank of China, Mizuho Bank, MUFG Bank, OCBC Bank, Capital Economics, Thomson Locations: SHANGHAI, SINGAPORE, China, United States, outflows

☆ The planet's coldest, saltiest ocean waters are heating up and shrinking, new report finds
▼ + stars: | 2023-06-12 | by ( Laura Paddison | ) edition.cnn.com time to read: +4 min

CNN —Deep ocean water in the Antarctic is heating up and shrinking, with potentially far-reaching consequences for climate change and deep ocean ecosystems, according to a report. They also found that ocean waters deeper than 2,000 meters (6,600 feet) have warmed four times faster than the rest of the global ocean. They are a vital part of global ocean circulation, transporting human-caused carbon pollution into the deep ocean where it remains for centuries, said Silvano. If this deep circulation weakens, “less carbon can be absorbed by the deep ocean, limiting the ability of the ocean to mitigate global warming,” Silvano told CNN. This cold, dense water also has a vital role in supplying oxygen to deep ocean waters.

Persons: Povl, ” Alessandro Silvano, ” Silvano, ”, Holly Ayres, ” Ayres, Zhou Organizations: CNN, British Antarctic Survey, Weddell, University of Southampton, Reading University Locations: Weddell, Antarctica

☆ Two giant rubber ducks debut in Hong Kong in bid to drive "double happiness"
▼ + stars: | 2023-06-09 | by ( ) www.reuters.com time to read: +2 min

[1/6] An art installation dubbed "Double Ducks" by Dutch artist Florentijn Hofman, is seen at Victoria Harbour, in Hong Kong, China June 9, 2023. Hofman said his pair of ducks represent "twice the fun, double the happiness" and bring new excitement to Hong Kong. "We would like more installation art like the rubber ducks in Hong Kong. Right now there isn't much space for art in Hong Kong if we compare it to Macau or Shenzhen, they have more art installations." A 40-year-old engineer named Kane said the ducks were positive for Hong Kong.

Persons: Florentijn Hofman, Tyrone Siu, Hofman, peng, Anna, Kane, It's, Justin Fung, Jessie Pang, Joyce Zhou, Farah, Michael Perry Organizations: Victoria Harbour, REUTERS, Ducks, Thomson Locations: Victoria, Hong Kong, China, Tyrone Siu HONG KONG, Hong, Victoria Harbour, Netherlands, France, Brazil, Hong Kong's, Tamar, Macau, Shenzhen

SHANGHAI/SINGAPORE, June 2 (Reuters) - China's yuan has skidded to six-month lows against the dollar and analysts say it could weaken further as investors fret over a bumpy pandemic recovery in the world's second-largest economy. "The yuan suffers as China's reopening story is less appealing than before, and there is no sign of further stimulus," said Gary Ng, senior economist for Asia Pacific at Natixis. "A weaker currency at the current juncture can help export performance, especially as global trade is shrinking this year." "A weaker yuan helps exporters when they convert the dollar receivables to yuan," said Barclays' FX strategist Lemon Zhang. A weaker yuan might also temper deflationary pressures being seen in parts of the economy due to weak domestic demand.

Persons: Gary Ng, Alvin Tan, Tan, Tommy Wu, Lemon Zhang, Serena Zhou, Winni Zhou, Brenda Goh, Tom Westbrook, Kim Coghill Organizations: Asia Pacific, Reuters, People's Bank of China, Asia FX, RBC Capital Markets, Barclays, FX, Mizuho Securities, Thomson Locations: SHANGHAI, SINGAPORE, United States, Natixis, Asia, China, Shanghai, Singapore

☆ Hong Kong Remembered the Tiananmen Massacre, Until It Couldn’t
▼ + stars: | 2023-06-04 | by ( Tiffany May | ) www.nytimes.com time to read: +1 min

For decades, Hong Kong was the only place in China where the victims of the 1989 military crackdown on pro-democracy activists at Tiananmen Square in Beijing could be publicly mourned in a candlelight vigil. This year, Hong Kong is notable for all the ways it is being made to forget the 1989 massacre. Over the weekend, thousands of officers patrolled the streets in the Causeway Bay district, where the vigil was normally held. Zhou Fengsuo, a student leader in the Tiananmen Square protest movement, said that Hong Kong is now under the same “despotic rule” as the mainland. “Afterward, Hong Kong protests faced the same suppression, the same vilification and erasure of memories.”

Persons: Hong Kong, “, ”, Zhou Fengsuo, Zhou Organizations: Tiananmen, Human Rights Locations: Hong, China, Beijing, Hong Kong, Causeway, Tiananmen, New York

☆ Verstappen wins in Spain to continue Red Bull sweep
▼ + stars: | 2023-06-04 | by ( Alan Baldwin | ) www.reuters.com time to read: +4 min

Red Bull's Sergio Perez, Verstappen's closest rival in a season that looks sure to crown the dominant Dutch 25-year-old for a third time, finished fourth after fighting back from 11th at the start. The victory was Verstappen's fifth of the season, third in a row, third in Spain and the double world champion's 40th in Formula One. TALKING POINTThe form of the Mercedes drivers, with a re-designed car after a disappointing start to the season, provided a main talking point. Mercedes moved up to second in the championship on 152 points to runaway Red Bull's 287 and with Aston Martin dropping to third on 134. Ferrari's Charles Leclerc, who started from the pitlane after a nightmare in qualifying left him on the back row, finished 11th.

Persons: Max Verstappen, Albert Gea, Mercedes, Perez, Lewis Hamilton, George Russell, Bull's Sergio Perez, Verstappen, Carlos Sainz, Max, Christian Horner, McLaren's Lando Norris, Aston Martin, Hamilton, Russell, Ferraris, Sainz, Aston Martins, Lance, Fernando Alonso, Alonso, Alpine's Esteban Ocon, Alfa Romeo's, Zhou, Pierre Gasly, Yuki Tsunoda, Ferrari's Charles Leclerc, Alan Baldwin, Angus MacSwan, Pritha Sarkar, Ken Ferris Organizations: Prix, Spanish, Prix REUTERS, Spain Dutch, Mercedes, Barcelona's, Formula One, Hamilton, Aston, Alfa, Renault, Thomson Locations: Catalunya, Barcelona, Spain, Verstappen's, London

HONG KONG/TAIPEI, June 4 (Reuters) - Hong Kong police searched and detained scores of people on Sunday, including four arrested for "seditious" intent, as authorities tightened security for the 34th anniversary of the 1989 Tiananmen Square crackdown. [1/6] Police detain a woman with paper flowers in downtown on the 34th anniversary of the 1989 Beijing's Tiananmen Square crackdown, near where the candlelight vigil is usually held, in Hong Kong, China June 4, 2023. 'CLEAR CONCLUSION'Despite the warnings in Hong Kong, some individuals, including book shop owners, have been quietly marking June 4. Peggy Kwan, 57, an interpreter at the event, expressed sadness at the stifling of commemorations in Hong Kong. "Hong Kong is moving backward," she said.

Persons: Alexandra Wong, Chris, Tyrone Siu, Hong, Chow, Mao Ning, Peggy Kwan, William Lai, Yew Lun Tian, Joyce Zhou, Angie Teo, James Redmayne, James Pomfret, Robert Birsel, Nick Macfie Organizations: Hong Kong, Britain, Police, REUTERS, New, Rights, The, Facebook, Foreign, Taiwan, Democratic Progressive, Town, Thomson Locations: HONG KONG, TAIPEI, Hong, Hong Kong, Taipei, London , New York, Berlin, Victoria, China, Kong, Beijing, Tiananmen, New York, Taiwan, Sydney, North America, Europe, Asia

☆ Tiananmen Square masacre anniversary: vigils go global as authorities in China and Hong Kong stamp out remembrance
▼ + stars: | 2023-06-03 | by ( Chris Lau | ) edition.cnn.com time to read: +10 min

“I think it’s sad to say that what Beijing and Hong Kong are doing is trying to erase history and the memory,” said Kevin Yam, a former lawyer in Hong Kong, who will be attending a ceremony in Melbourne, Australia, where he now resides. “Hong Kong has been carrying the torch for commemorating the Tiananmen massacre, keeping the legacy alive. When the museum was shut down, with the Hong Kong alliance’s leaders in prison, we knew it was a critical moment,” he said. Thousands gathered at a candlelit vigil in Hong Kong on June 4, 2017, to mark 28 years since China's bloody Tiananmen Square crackdown. “It is true that the commemorations around June 4th have expanded and become more global since it has become impossible to do anything in Hong Kong,” he told CNN.

Persons: Tyrone Siu, Hong Kongers, ”, Kevin Yam, Zhou, Zhou Fengsuo, Wang Dan, Hong Kong’s, “, Hong Kong, Isaac Lawrence, Chris Tang –, –, Louise Delmotte, Richard Tsoi, Catherine Henriette, Jens Galschiot, Anthony Kwan, Kongers Organizations: Hong Kong CNN, Communist Party, Reuters, CNN, Hong, People’s Liberation Army, Authorities, Getty, Victoria Park, Chinese Communist Party, Hong Kong Alliance, Police, . Police, of, Los, “, Britain –, London Locations: Hong Kong, China, Victoria, Beijing, Australia, Japan, Taiwan, Europe, United States, Canada, Melbourne, New York, York, “ Hong Kong, Hong, AFP, Tiananmen, Berlin, Danish, Germany, Los Angeles, Boston, Norway, Causeway, Britain, Nottingham, Manchester, London

[1/5] Hong Kong Newspapers from June 5, 1989, reporting the Tiananmen Square China uprising, is pictured during a press preview of the Tiananmen June 4th Memorial permanent exhibition, which opens June 2 in Manhattan, in New York City, U.S., June 1, 2023. REUTERS/Mike SegarNEW YORK, June 1 (Reuters) - The hope for a "free China" lives on in a new Manhattan museum dedicated to China's 1989 suppression of pro-democracy demonstrations around Tiananmen Square, exhibit organizers said on Thursday ahead of the 34th anniversary of the crackdown. The June 4th Memorial Museum in New York will be the only such permanent exhibition in the world, following the 2021 closure of a similar museum in Hong Kong under pressure from authorities. Public memorials of the crackdown were once allowed in Hong Kong, but Hong Kong police have barred a vigil there since 2020, citing COVID-19 concerns. Wang Dan, another former Tiananmen student leader who helped establish the museum, said he felt it was his obligation to show his respect for the protesters who died.

Persons: Mike Segar, Zhou Fengsuo, Zhou, Wang Dan, Wang, Aleksandra Michalska, Michael Martina, James Pomfret, Jessie Pang, Don Durfee, Rosalba O'Brien Organizations: Hong Kong Newspapers, REUTERS, Museum, China's, Hong, Overseas, Reuters, Thomson Locations: China, Manhattan, New York City, U.S, Tiananmen, New York, Hong Kong, Beijing, Washington, British, Taipei, London, Berlin

☆ China's factory activity swings to surprise growth in May - Caixin PMI
▼ + stars: | 2023-06-01 | by ( ) www.reuters.com time to read: +3 min

The Caixin/S&P Global manufacturing purchasing managers' index (PMI) rose to 50.9 in May from 49.5 in April, above the 50-point index mark that separates growth from contraction. The reading surpassed expectations of 49.5 in a Reuters poll, a stark contrast to a deeper contraction activity seen in the official PMI released on Wednesday. The manufacturing subindexes showed factory output rose at the fastest clip in 11 months while new orders including new exports expanded in May. However, business confidence for the coming 12 months fell to a seven-month low amid concerns over global economic prospects. "Current economic growth lacks internal drive and market entities lack sufficient confidence, highlighting the importance of expanding and restoring demand, " said Wang Zhe, Senior Economist at Caixin Insight Group.

Persons: Zhou Hao, Hang, Wang Zhe, 25bps, Liangping Gao, Joe Cash, Ryan Woo, Sam Holmes, Simon Cameron, Moore Organizations: P Global, PMI, Guotai, CSI, Caixin Insight, ANZ, Thomson Locations: BEIJING, China

☆ Elon Musk: CEOs flock to China as risks to trade and investment rise
▼ + stars: | 2023-05-31 | by ( Michelle Toh | ) edition.cnn.com time to read: +8 min

To drum up business, Chinese leaders have urged foreign companies to invest more in the country, promising them an open and level playing field. “The interests of the United States and China are intertwined like conjoined twins,” he was quoted as saying by the foreign ministry. Over time, “there will be less trade” between China and the United States, Dimon predicted. The move was seen as retaliation for restrictions the United States has imposed on Chinese chipmakers. The interests of the United States and China are intertwined like conjoined twins.

Persons: Elon, Laxman, Jamie Dimon, Qin Gang, Tesla, Elon Musk, Musk, ”, Warren Buffett, Dimon’s, Dimon, That’s, Bain, “ who’s, ” Michael Hart, Ben Cavender, Nick Marro, Tim Cook, Cook, Marro, ‘, ” —, Sophie Jeong, Martha Zhou Organizations: Hong Kong CNN, Tesla, Starbucks, JPMorgan, Apple, Samsung, Aramco, Volkswagen, HSBC, Standard Chartered, Foreign, China's Ministry of Foreign Affairs, Reuters, China’s Foreign, Shanghai’s Communist Party, Bloomberg, Group, American Chamber of Commerce, CNN, British, of Commerce, China Market Research Group, US, Micron, Economist Intelligence Unit, “ Companies, China Development Forum Locations: Hong Kong, China, Beijing, United States, Shanghai, Taiwan, Washington, New York, American, Xinjiang

The easiest trade of the year is fizzling, and the lost momentum is keeping investors' money out. "I will not put any more money into stocks until all my losses are recovered," he said. Interviews with a dozen more small investors showed the sentiment to be reasonably widespread. Brokerage account creation, while volatile, likewise dropped off in April after promising momentum in February and March, China Securities Depository and Clearing data showed. "It is as if stocks are losing faith in the China recovery story," said Grow Investment Group chief economist Hong Hao.

The easiest trade of the year is fizzling, and the lost momentum is keeping investors' money out. Interviews with a dozen more small investors showed the sentiment to be reasonably widespread. Brokerage account creation, while volatile, likewise dropped off in April after promising momentum in February and March, China Securities Depository and Clearing data showed. "It is as if stocks are losing faith in the China recovery story," said Grow Investment Group chief economist Hong Hao. China's April industrial output and retail sales growth undershot forecasts as the recovery turned wobbly.

Persons: Eric Yu, Yi Huiman, Hong Hao, Wang Zaizheng, Chi Lo, Hayden Briscoe, Meng, Jason Xue, Winni Zhou, Tom Westbrook, Shri Navaratnam Organizations: China Securities Regulatory, JPMorgan, China Securities Depository, Mutual, Grow Investment Group, Management, UBS Asset Management, Thomson Locations: SHANGHAI, SINGAPORE, China's, Shanghai, China, United States, Hong Kong, Asia, Pacific, Singapore

☆ Verstappen wins in Monaco to make it six out of six for Red Bull
▼ + stars: | 2023-05-28 | by ( Alan Baldwin | ) www.reuters.com time to read: +4 min

"That was a real Monaco," Verstappen said after a 78-lap race that lasted an hour and 48 minutes. CLOSEST RIVALThe win was Verstappen's fourth of the season, second in Monaco and 39th of his career. Mexican team mate Sergio Perez, his closest title rival, started in last position after a qualifying crash and finished two laps down in 16th. Alpine's Pierre Gasly, Ferrari's Carlos Sainz, McLaren's Lando Norris and team mate Oscar Piastri completed the points positions. While Alonso celebrated his fifth podium of the season, and best result yet for Aston Martin, Canadian team mate Lance Stroll retired after repeated tangles with rivals.

[1/2] Alan Leong Kah-kit, Chairperson of the Civic Party, speaks to the media announcing the party's disbandment in Hong Kong, China May 27, 2023. Today, the Civic Party is bidding Hong Kong farewell. We hope Hong Kong people will live in the moment with a hopeful and not too heavy heart. The Civic Party, founded in 2006, had been a major democratic force in the financial hub that returned from British to Chinese rule in 1997, alongside the Democratic Party, performing strongly in local legislative and district polls. Hong Kong and Chinese authorities described the electoral revamp as a progressive democratic step to ensure only pro-China "patriots" govern Hong Kong.

☆ China holds lending rates steady; cautious on weak yuan, capital outflow risk
▼ + stars: | 2023-05-22 | by ( ) www.reuters.com time to read: +3 min

Earlier in the day, China's one-year loan prime rate (LPR) was kept at 3.65% and its five-year LPR was unchanged at 4.30%. In a Reuters poll of 26 market watchers conducted last week, 23 predicted no change to the rates for this month. "Within monetary policy, symbolic measures such as a reserve requirement ratio (RRR) cut are more likely than policy rate cuts this year given the already wide U.S.-China interest rate differential and RMB depreciation pressure." The steady LPR fixings also came after the PBOC rolled over maturing medium-term lending facility (MLF) loans while keeping the interest rate unchanged last week. "This can probably be achieved without policy rate cuts, which we think the PBOC will try to avoid," they said.

As doubts grow about the strength of its economic recovery, foreign money has left China's markets and the currency has fallen 4% against the dollar since late January. Analysts at Nomura and Societe Generale say the yuan could soon head for 7.3, which as last plumbed in November. Reflecting that, the trade-weighted CFETS basket against which the People's Bank of China (PBOC) manages the currency, has dropped to 99 from 100 in February. THE CHEAP CURRENCYBecky Liu, head of China macro strategy at Standard Chartered Bank, expects the yuan will continue to depreciate. "The interest rate gap remains wide, so many hedge funds continue to use yuan as a funding currency," Liu said.

☆ China's economic recovery has lost speed: Guotai Junan International
▼ + stars: | 2023-05-16 | 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 post-Covid economic recovery has been losing speed since April, economist saysHao Zhou of Guotai Junan International says there will probably be "relatively good numbers" for now, but there's concern about China's economic momentum.

Search resuls for: "Zhou"

25 mentions found