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☆ China new bank lending nearly doubles after central bank help
▼ + stars: | 2022-10-11 | by ( Judy Hua | Kevin Yao | ) www.reuters.com time to read: +4 min

FILE PHOTO: 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. Analysts polled by Reuters had predicted new yuan loans would rise to 1.80 trillion yuan in September. New yuan loans totalled 18.08 trillion yuan in the first nine months, rising 1.36 trillion yuan from a year earlier, central bank data showed. Broad M2 money supply in September grew 12.1% from a year earlier, central bank data showed, in line with analysts’ forecasts in a Reuters poll. In September, TSF rose to 3.53 trillion yuan from 2.43 trillion yuan in August.

☆ Morning Bid: China back for dollar thwack
▼ + stars: | 2022-10-09 | by ( ) www.reuters.com time to read: +2 min

Asian trade could be more volatile than usual as China reopens after the Golden Week holiday. Register now for FREE unlimited access to Reuters.com RegisterChina will be very much in focus this week. The Caixin services PMI over the weekend showed that activity contracted in September for the first time since May, and the economic data dump this week includes inflation, trade, and loan growth. Elsewhere in Asia this week the Monetary Authority of Singapore and Bank of Korea are set to raise rates. The BOK has already intervened to support the won, which last week hit a 13-1/2 year low, and the Singapore dollar is also close to a post-2009 low.

☆ China’s yuan hovers near record lows against the dollar despite central bank warning
▼ + stars: | 2022-09-29 | by ( Laura He | ) edition.cnn.com time to read: +3 min

Hong Kong CNN Business —China’s yuan hovered near record lows against the US dollar on the offshore market on Thursday, as major currencies around the world continue to tumble after the Federal Reserve’s aggressive hikes. The yuan — also known as the renminbi —has been declining for months despite interventions by China’s central bank. The fall comes despite People’s Bank of China warning traders on Wednesday not to bet on the currency’s continued depreciation. Vendors exchange Chinese yuan notes at a store on Sunday, July 17, 2022, in Beijing. Ng Han Guan/APThe PBOC, meanwhile, has urged traders not to “keep gambling.”“The foreign exchange market is a big deal.

☆ Exclusive: China's state banks told to stock up for yuan intervention
▼ + stars: | 2022-09-29 | by ( Julie Zhu | ) www.reuters.com time to read: +3 min

China's offshore yuan immediately bounced about 200 pips after Reuters' story before last trading at 7.1849 per dollar as of 0935 GMT. The offshore yuan moves in lock-step with the onshore unit, but its trading volumes account for about 70% of all yuan FX trades globally, dwarfing the volumes traded on the mainland. Chinese authorities have intervened in the past in the offshore yuan market to steer the yuan. Sources said the intervention plan involved using state lenders' dollar reserves primarily. Earlier this week, Chinese monetary authorities told local banks to revive a yuan fixing tool it abandoned two years ago as they sought to steer and defend the weakening currency.

☆ 'Do not bet': China's central bank warns against yuan speculation
▼ + stars: | 2022-09-29 | by ( Evelyn Cheng | ) www.cnbc.com time to read: +1 min

The Chinese yuan weakened past the closely-watched 7.2 level against the greenback this week. BEIJING — The People's Bank of China has warned against betting on the yuan, after its rapid decline against the U.S. dollar this week. "Do not bet on a one-sided appreciation or deprecation of the renminbi exchange rate," the central bank said in a Chinese statement on its website late Wednesday, according to a CNBC translation. That's based on a readout of a speech by vice governor Liu Guoqiang at a video conference meeting on foreign exchange that day. The renminbi, or the yuan, crossed the 7.2 level against the greenback Wednesday, falling to its weakest since 2008.

☆ EXCLUSIVE China prepares to tweak yuan fixing process to slow its fall -source
▼ + stars: | 2022-09-27 | by ( ) www.reuters.com time to read: +3 min

REUTERS/Florence Lo/IllustrationSHANGHAI, Sept 27 (Reuters) - Chinese monetary authorities are asking local banks to revive a yuan fixing tool it abandoned two years ago as they seek to steer and defend the rapidly weakening currency, a source said on Tuesday. The source, who is familiar with the yuan rate-setting process, said monetary authorities were prodding banks to include the so-called counter-cyclical factor in their daily fixings for the tightly-managed exchange rate. It's an adjustment that 14 banks make to their yuan quotes that the People's Bank of China (PBOC) uses to set the daily reference rate, effectively introducing a bias to the fixing rate. It was abandoned in 2020 when the yuan rose sharply and authorities decided to let market forces dictate the rate around which the yuan is allowed to move. The move aims to restore and strengthen the two-way floating nature of the yuan, said the source.

☆ Exclusive: China prepares to tweak yuan fixing process to slow its fall -source
▼ + stars: | 2022-09-27 | by ( ) www.reuters.com time to read: +3 min

SHANGHAI, Sept 27 (Reuters) - Chinese monetary authorities are asking local banks to revive a yuan fixing tool it abandoned two years ago as they seek to steer and defend the rapidly weakening currency, a source said on Tuesday. The source, who is familiar with the yuan rate-setting process, said monetary authorities were prodding banks to include the so-called counter-cyclical factor in their daily fixings for the tightly-managed exchange rate. It's an adjustment that 14 banks make to their yuan quotes that the People's Bank of China (PBOC) uses to set the daily reference rate, effectively introducing a bias to the fixing rate. It was abandoned in 2020 when the yuan rose sharply and authorities decided to let market forces dictate the rate around which the yuan is allowed to move. The move aims to restore and strengthen the two-way floating nature of the yuan, said the source.

☆ China's yuan ends at 28-month low despite fresh policy step, nears daily lower limit
▼ + stars: | 2022-09-26 | by ( Reuters Staff | ) www.reuters.com time to read: +2 min

SHANGHAI (Reuters) -China’s yuan finished domestic trading session at a new 28-month low against the dollar on Monday, near its downside trading limit, despite the central bank taking steps to rein in the currency’s weakness. FILE PHOTO: Chinese yuan banknotes are seen in this illustration picture taken April 25, 2022. However, the midpoint continued to come in much stronger than market projections for the 23rd straight trading session, traders and analysts said. The official daily midpoint fixing limits the onshore yuan to trade in a narrow range of 2% above or below, and Monday’s guidance kept the range to between 6.8892 and 7.1704. The onshore yuan hit an intraday low of 7.1690, 14 pips away from the lower end of the trading band.

☆ China's yuan hits 28-month low despite fresh policy step, nears daily down-limit
▼ + stars: | 2022-09-26 | by ( ) www.reuters.com time to read: +3 min

It was changing hands at 7.1662 at midday, 364 pips weaker than the previous late session close. read moreBy midday, the global dollar index hovered around its two-decade high of 113.996 at midday, while the offshore yuan was trading at 7.1704 per dollar. The yuan market at 0401 GMT:ONSHORE SPOT:Key indexes:*Divergence of the dollar/yuan exchange rate. Negative number indicates that spot yuan is trading stronger than the midpoint. The People's Bank of China (PBOC) allows the exchange rate to rise or fall 2 percent from official midpoint rate it sets each morning.

☆ Explainer: What's inside China's toolbox to rein in excess yuan weakness?
▼ + stars: | 2022-09-21 | by ( ) www.reuters.com time to read: +4 min

The local currency also looks set for the biggest annual loss since 1994, when China unified official and market exchange rates. The rapid yuan declines prompted the People's Bank of China (PBOC) to lower the amount of foreign exchange financial institutions must hold as reserves to rein in weakness. The PBOC has been setting firmer-than-expected daily yuan midpoint fixings since late August to prevent excess yuan weakness, as the onshore spot yuan can only trade in a 2% narrow range around the midpoint. The central bank adjusted the methodology a few times before suspending it in October 2020. "The yuan exchange rate level itself is not the most important, the nature of the issue is whether China's cross-border capital flows remain stable," said Zhong Zhengsheng, chief economist at Ping An Securities.

☆ Inflation is a global problem. Here's how central banks are addressing it
▼ + stars: | 2022-09-21 | by ( Nicole Goodkind | Cnn Business | ) edition.cnn.com time to read: +7 min

In Turkey and Argentina, annual inflation rates are forecast to clock in at a whopping 80%. At least 75 have lifted their benchmark interest rates in the past year, increasing the price of credit across the world. In July, it instituted its second consecutive 0.75 percentage point interest rate increase, taking its benchmark rate to a range of 2.25% to 2.5%. The country is struggling with rampant inflation rate that rose to a 20-year high of nearly 80% in August. The country's annual inflation rate slowed to 7% in August, below analyst forecasts of 7.3% and down from 7.6% in July.

☆ Inflation is a global problem. Here’s how central banks are addressing it
▼ + stars: | 2022-09-21 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +7 min

In Turkey and Argentina, annual inflation rates are forecast to clock in at a whopping 80%. At least 75 have lifted their benchmark interest rates in the past year, increasing the price of credit across the world. In July, it instituted its second consecutive 0.75 percentage point interest rate increase, taking its benchmark rate to a range of 2.25% to 2.5%. The country is struggling with rampant inflation rate that rose to a 20-year high of nearly 80% in August. The country’s annual inflation rate slowed to 7% in August, below analyst forecasts of 7.3% and down from 7.6% in July.

☆ China leaves lending benchmarks unchanged amid global rates squeeze
▼ + stars: | 2022-09-20 | by ( Reuters Staff | ) www.reuters.com time to read: +3 min

FILE PHOTO: People wearing face masks walk past the headquarters of Chinese central bank People's Bank of China (PBOC), April 4, 2020. The one-year loan prime rate (LPR) was kept at 3.65%, while the five-year LPR was unchanged at 4.30%. The steady LPR fixings came after the People’s Bank of China (PBOC) last week left its medium-term policy rate unchanged, while draining some liquidity from the banking system. China lending ratesThe borrowing cost of the medium-term lending facility (MLF) serves as a guide to the LPR, and markets usually use the medium-term rate as a precursor to any changes to the lending benchmarks. Marco Sun, chief financial market analyst at MUFG Bank (China), said economic indicators surprised on the upside in August.

☆ Treasury yields jump before Fed meeting, dollar gains
▼ + stars: | 2022-09-19 | by ( Herbert Lash | ) www.reuters.com time to read: +6 min

The higher yield helped strengthen the dollar and made gold less attractive as concerns about the economy in light of higher rates cooled risk taking. After the past three Fed meetings, there have been relief rallies in bonds and equities as markets interpreted Powell as being dovish. read moreThe two-year yield , a barometer of future inflation expectations, climbed to a fresh almost 15-year high of 3.970%. read moreThe dollar rose 0.21% against the yen , backing off from the 24-year peak of 144.99 two weeks ago amid increasingly strident intervention warnings from Japanese policymakers. The dollar index rose 0.055%, with the euro up 0.06% to $1.0021.

The higher rate helped strengthen the dollar and weaken gold prices as other central banks also are expected to hike rates this week. But a rally this time is unlikely when policymakers conclude a two-day meeting on Wednesday, he said. Markets also indicate a real chance that rates could hit 4.5% as the Fed is forced to tip the economy into a recession to subdue inflation. "Asset performance during this Fed tightening cycle is very different from the norm for other rate hike episodes," said David Chao, a global market strategist at Invesco. read moreChina's central bank went its own way though, and cut a repo rate by 10 basis points to support its ailing economy.

The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, September 16, 2022. They also indicate a real chance that rates could hit 4.5% as the Fed is forced to tip the economy into recession to subdue inflation. However, most assets have suffered this time, perhaps due to the surge in inflation and abrupt policy change." (.SX8P) read moreS&P 500 futures lost 0.9%, and Nasdaq futures fell 1%. read moreChina's central bank went its own way though, and cut a repo rate by 10 basis points to support its ailing economy.

☆ China central bank cuts 14-day reverse repo rate, steps up cash injections
▼ + stars: | 2022-09-19 | by ( ) www.cnbc.com time to read: +1 min

A woman looks at his smartphone as she walks past the People's Bank of China (PBOC) building on June 14, 2022 in Beijing, China. China's central bank lowered the borrowing cost of 14-day reverse repos on Monday and stepped up cash injections to counteract higher demand towards the quarter-end. The People's Bank of China (PBOC) injected 2 billion yuan ($286.54 million) through 7-day reverse repos and another 10 billion yuan through the 14-day tenor, it said in a statement. The reduction was a catch-up move to the central bank's decision in August by cutting some key interest rates, including the 7-day reverse repo rate, to revive credit demand and prop up the sputtering economy. With no reverse repo maturing on Monday, the PBOC injected a net 12 billion yuan via the short-term liquidity instruments.

The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, September 16, 2022. However, most assets have suffered this time, perhaps due to the surge in inflation and abrupt policy change." read moreChina's central bank went its own way, though, and cut a repo rate by 10 basis points to support its ailing economy, leaving blue chips (.CSI300) up 0.1%. The dollar index , which measures the currency against six counterparts, was 0.4% stronger at 110.03. Oil prices slid, pressured by the stronger dollar Brent crude fell 1.3% to $90.18.

China's 'zero-COVID' policy – including stringent lockdowns, travel restrictions and mass testing - has taken a heavy toll on the country's economy. The government's crackdown on big technology companies has also had an outsized effect on the young workforce. Chinese households overall added 10.8 trillion yuan ($1.54 trillion) in new bank savings in the first eight months of the year, up from 6.4 trillion yuan in the same period last year. China is the only leading economy that cut interest rates this year, in an effort to spur growth. Fu said she switched her makeup powder brand from Givenchy to a Chinese brand called Florasis, which is about 60% cheaper.

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