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☆ Dollar in holding pattern as U.S. inflation test looms, PBOC supports yuan
▼ + stars: | 2023-08-10 | by ( ) www.cnbc.com time to read: +4 min

A Chinese 100 yuan banknote, a 1 U.S. dollar bill and a 50 euro banknote are lying on a table. The Australian and New Zealand dollars hovered close to two-month lows amid a worsening economic outlook for key trade partner China. The dollar was little changed at 143.79 yen , after earlier drifting to the highest since July 7 at 143.90. Elsewhere, the Chinese yuan tacked on about 0.1% to 7.2235 per dollar in offshore trading after the PBOC set a stronger official mid-point than the market consensus for a second day. New Zealand's kiwi was flat at $0.6053, just above Tuesday's low of $0.6035, which was the weakest since June 8.

Persons: —, Tony Sycamore, Sycamore, Kristina Clifton, Joe Biden Organizations: Federal Reserve, Bank of Japan, New, People's Bank of China, Street, Fed, Commonwealth Bank of Australia, U.S Locations: U.S, New Zealand, China, Japan

☆ Chinese property stocks surge after central bank vows more support for private businesses
▼ + stars: | 2023-08-04 | by ( Lim Hui Jie | ) www.cnbc.com time to read: +1 min

Other attendees included diary giant Yili Group, aluminum products manufacturer China Hongqiao Group and electrical components manufacturer Chint Group . At the symposium, PBOC governor Pan Gongsheng said the central bank will promote the expansion of private business bond financing support instruments, and strengthen the financial market to support their development. This is the latest move by the central government to boost market confidence and vow support for private businesses and the real estate sector amid signs of slowing growth. watch nowAt the Politburo meeting on July 24, the top leadership promised to "adjust and optimize policies" to boost the beleaguered property sector, as well as introduce measures to promote private investment. Separately, China's state planner, the National Development and Reform Commission, also released a 17-point statement, and pledged to encourage more private capital into the construction of major national projects.

Persons: Qilai Shen, Pan Gongsheng Organizations: Bloomberg, Getty, China Hongqiao Group, Chint, National Development, Reform Commission, Communist Party Locations: Beijing, China

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. Investors in China's stock markets, however, were clearly underwhelmed, as Hong Kong's Hang Seng Index (.HSI) dropped roughly 2% over the week, while the mainland's benchmark CSI 300 index (.CSI) eked out a 0.7% gain. But investors are becoming frustrated by the time the NDRC is taking to flesh out stimulus policies, or order measures like a cut in stamp duty - that could help China's ailing property sector, and please investors in stocks and bonds. Even in a best-case scenario, growth over the second half of this year looks set to be modest." Reporting by Joe Cash and Albee Zhang in Beijing; Editing by Himani Sarkar & Simon Cameron-MooreOur Standards: The Thomson Reuters Trust Principles.

Persons: Tingshu Wang, HSI, flexibly, Zou Lan, Xu Tianchen, Joe Cash, Albee Zhang, Himani Sarkar, Simon Cameron, Moore Organizations: People's Bank of China, REUTERS, National Development, Reform Commission, Communist Party's, UBS, Council, Economist Intelligence Unit, Weibo, Capital Economics, Thomson Locations: Beijing, China, BEIJING

☆ China's central bank to guide more financial resources to support private sector
▼ + stars: | 2023-08-03 | by ( ) www.reuters.com time to read: +3 min

REUTERS/Jason Lee/File PhotoBEIJING, Aug 3 (Reuters) - China's central bank governor pledged on Thursday to guide more financial resources towards the private economy, suggesting refreshed urgency from Beijing to bolster the confidence among private firms as economic momentum weakens. During a meeting on Thursday with at least eight private firms from sectors including property, aluminium and agribusiness, the People's Bank of China (PBOC) Governor Pan Gongsheng said the bank would roll out guidelines to support private firms. Responding to some firms' requests of broadening bond financing channels, Pan said the central bank would expand debt financing tools for them. "Financial institutions should actively create a positive atmosphere to support the development and growth of private firms ... and increase willingness to lend." To revive confidence among private businesses, head of the economic planner also held several meetings with private firms last month to learn about their operation difficulties.

Persons: Pan, Jason Lee, Pan Gongsheng, Ellen Zhang, Ryan Woo, Ella Cao, Jon Boyle, Alison Williams Organizations: People's Bank of China, Congress, REUTERS, HK, China Hongqiao, Chint, Thomson Locations: Beijing China, BEIJING, Beijing, China, Hope

"China is not trying to supplant the IMF," said Matthew Mingey, a senior analyst with Rhodium Group. "When China has allowed these swap lines to be tapped, in many cases it's to unlock an IMF bailout or ensure an IMF programme stays on track." In turn, China is a major customer for Argentina's soy, corn and poultry exports. "China has every incentive to tightly manage Argentine drawings under the swap lines as the risks are very high." The swap line that the People's Bank of China (PBOC) signed in 2009 with Buenos Aires was the first agreed with a Latin American country.

Persons: Matthew Mingey, Buenos, Mark Sobel, Sobel, Sergio Massa, Martin Castellano, Alejandro Werner, Werner, Mingey, Jorgelina, Rosario, Karin Strohecker, Jorge Otaola, Joe Cash, Kirsten Donovan Organizations: International Monetary Fund, IMF, U.S . Treasury, Reuters, World Bank, TAG, People's Bank of China, Buenos Aires, Economy, Institute of International Finance, Relations, Georgetown Americas Institute, Western Hemisphere Department, Thomson Locations: China, Argentina, Beijing, Washington, Latin America, Buenos Aires, U.S, Buenos, American, United States, Zambia, Sri Lanka, Taiwan, Ukraine

☆ Exclusive: China asks some banks to reduce or delay dollar buying to ease pressure on yuan -sources
▼ + stars: | 2023-08-01 | by ( ) www.reuters.com time to read: +1 min

SHANGHAI/BEIJING, Aug 1 (Reuters) - China's currency regulators have in recent weeks asked some commercial banks to reduce or delay their dollar purchases, two people with direct knowledge of the matter said. The informal instruction, or the so-called window guidance, was meant to slow the pace of yuan depreciation, the sources said. One source said the regulators were emphatic banks should hold off dollar purchases under their proprietary trading accounts. Chinese yuan has lost 3.6% against the U.S. dollar so far this year, hitting 7.16 per dollar on Tuesday to be one of Asia's worst performing currencies. Reporting by Shanghai and Beijing Newsrooms; Editing by Simon Cameron-MooreOur Standards: The Thomson Reuters Trust Principles.

Persons: Simon Cameron, Moore Organizations: U.S, People's Bank of China, Reuters, State Administration of Foreign Exchange, Thomson Locations: SHANGHAI, BEIJING, Shanghai, Beijing

☆ Factbox: China's measures to slow yuan depreciation
▼ + stars: | 2023-08-01 | by ( ) www.reuters.com time to read: +4 min

Coins and banknotes of China's yuan are seen in this illustration picture taken February 24, 2022. The informal instruction, or the so-called window guidance, was meant to slow the pace of yuan depreciation, the sources said. China's yuan has lost 3.6% against the dollar to 7.16 per dollar, becoming one of the worst performing Asian currencies. ** July 20, 2023China's major state-owned banks were seen selling dollars to buy yuan in the offshore spot market in early Asian trades, sources with direct knowledge of the matter said. ** June 29, 2023China's major state-owned banks were seen selling dollars for yuan in the onshore spot foreign exchange market, sources with knowledge of the matter said.

Persons: Florence Lo, Winni Zhou, Vidya Ranganathan, Susan Fenton Organizations: REUTERS, People's Bank of China, prudential, Reuters, Thomson Locations: China

☆ Exclusive: China asks some banks to reduce or delay dollar buying -sources
▼ + stars: | 2023-08-01 | by ( ) www.reuters.com time to read: +5 min

One source said regulators were emphatic banks should hold off dollar purchases under their proprietary trading accounts due to the "recent yuan depreciation". "The yuan exchange rate expectations are stable, and the foreign exchange market has the foundation to meet authentic and compliant FX needs," SAFE said in response to a Reuters query. Keeping non-urgent dollar demand at bay could relieve some of the immediate pressure on the yuan, the sources said. But that excitement soon faded, as domestic and foreign investors said they would wait for substantive action before putting more money into China. There was also a seasonal factor too, as overseas-listed Chinese companies usually need more foreign exchange in the summer to pay dividends to shareholders.

Persons: China's, Ken Cheung, Alvin Tan, Tan, Goldman Sachs, Vidya Ranganathan, Simon Cameron, Moore Organizations: U.S ., People's Bank of China, State Administration of Foreign Exchange, Reuters, Mizuho Bank, Asia FX, RBC Capital Markets, Goldman, Overseas, Thomson Locations: SHANGHAI, BEIJING, Hong Kong, Asia, China, Shanghai, Beijing

☆ Pan Gongsheng: China's new central bank governor faces daunting tasks
▼ + stars: | 2023-07-26 | by ( Laura He | ) edition.cnn.com time to read: +4 min

Hong Kong CNN —China has a new central bank governor. He replaced Yi Gang, who took office in March 2018, when China’s longest-serving central banker Zhou Xiaochuan stepped down after a 15-year tenure. He was previously a deputy governor of the PBOC and has served as head of China’s foreign exchange regulator since 2016, managing currency reserves worth $3.18 trillion. In China’s political system, the Communist Party boss is usually the top official in the relevant organization, be it a level of government or a public institution. In March, Beijing created a powerful financial watchdog run by the Communist Party, named the Central Financial Commission, as part of a broad reform of governing bodies to strengthen the party’s oversight of economic affairs.

Persons: Pan Gongsheng, Yi Gang, Zhou Xiaochuan, Xi Jinping, Xi, ”, Ken Cheung, Zhou Organizations: Hong Kong CNN, People’s Bank of China, Communist Party, Renmin University of China, Cambridge University, Harvard University, Xinhua, Mizuho Bank, Central Financial Commission, Financial Regulatory Locations: Hong Kong, China, Beijing

☆ China signals more support for real estate with a 'big change' in tone
▼ + stars: | 2023-07-26 | by ( Evelyn Cheng | ) www.cnbc.com time to read: +5 min

Construction on a real estate project in Yantai, Shandong province, gets under way on July 8, 2023. Nurphoto | Nurphoto | Getty ImagesBEIJING — China is changing its tone on the struggling real estate sector, paving the way for policy support. The statement reflects a "much clearer understanding about the seriousness of the situation," said Qin Gang, executive director of China real estate research institute ICR. He expects policies beneficial to the real estate market and consumption will come out in coming days. So far, the biggest real estate policy change has been this month's extension of measures to support developers, which were first revealed in November.

Persons: Larry Hu, Hu, Qin Gang, Ricky Tsang, China's, Tsang, It's, Zong Liang, Zong, Tommy Wu, Wu Organizations: Nurphoto, Getty, CNBC, Macquarie, People's Bank of China, Qin, Seng Property Development, National Bureau of Statistics, Bank of China Locations: Yantai, Shandong province, BEIJING, China

☆ 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 keeps lending benchmarks unchanged; economic weakness tests policymakers
▼ + stars: | 2023-07-20 | by ( ) www.reuters.com time to read: +2 min

SHANGHAI/SINGAPORE, July 20 (Reuters) - China left its lending benchmarks unchanged on Thursday, after the central bank stood pat on a key policy rate earlier this week even as signs of a faltering economic recovery called for more stimulus. The one-year loan prime rate (LPR) was kept at 3.55%, while the five-year LPR was unchanged at 4.20%. The steady LPR fixings come as the People's Bank of China (PBOC) rolled over maturing medium-term policy loans and kept the interest rate unchanged earlier this week. The medium-term lending facility (MLF) rate serves as a guide to the LPR and markets mostly use the MLF rate as a precursor to any changes to the lending benchmarks. Most new and outstanding loans in China are based on the one-year LPR, while the five-year rate influences the pricing of mortgages.

Persons: Winni Zhou, Tom Westbrook, Jacqueline Wong Organizations: United, People's Bank of China, Thomson Locations: SHANGHAI, SINGAPORE, China, United States

July 20 (Reuters) - A look at the day ahead in Asian markets from Jamie McGeever, financial markets columnist. China's central bank is expected to leave key interest rates on hold on Thursday, but the pressure to ease is growing almost by the day. The Dow Jones Industrials is now up eight days in a row for the first time since September 2019. The main argument against cutting rates - and it's a valid one - is the currency. Given all that, it's little wonder China's assets continue to trade poorly, even though the degree of underperformance is startling.

Persons: Jamie McGeever, Dow Jones Industrials, Josie Kao Organizations: U.S, IBM, Tesla, Netflix, People's Bank of China, ., Thomson, Reuters Locations: Hong Kong, Asia, China, Japan, Australia

☆ Instant View: China's Q2 GDP growth slows to 0.8% q/q, raises stimulus expectations
▼ + stars: | 2023-07-17 | by ( ) www.reuters.com time to read: +11 min

"Consumers are not spending, mainly driven by the bleak outlook for the property market. Disappointing retail numbers and property market sales show it doesn't seem that the boost from rate cuts is sufficient. ..the property market is beginning another slowdown - the government will have to come up with more stimulus for property." "Nonetheless, we think more stimulus is required to stabilise and restore confidence in the property market." ZHIWEI ZHANG, CHIEF ECONOMIST, PINPOINT ASSET MANAGEMENT, HONG KONG"Nominal GDP growth turns out to be lower than real GDP growth in Q2, the first time since comparable data are available in Q4 2016.

Persons: CHRISTOPHER WONG, LOUIS KUIJS, CAROL KONG, XING ZHAOPENG, KEN CHEUNG, ALVIN TAN, VISHNU VARATHAN, MARCO SUN, CHEN, TONY SYCAMORE, ZHIWEI ZHANG, JING LIU Organizations: Gross, National Bureau, Statistics, Shanghai, NBS, BANK OF, ANZ, MIZUHO BANK, OF, OF ASIA FX, RBC, MUFG BANK, IG, SYDNEY, Friday's, BANK OF SINGAPORE, HSBC, stoke, Authorities, Reuters, U.S, Thomson Locations: U.S, SINGAPORE, ASIA, HONG KONG, SYDNEY, CHINA, SHANGHAI, OF ASIA, China

☆ China rolls over medium-term policy loans, rate unchanged
▼ + stars: | 2023-07-17 | by ( ) www.reuters.com time to read: +2 min

SHANGHAI/SINGAPORE, July 17 (Reuters) - China's central bank rolled over maturing medium-term policy loans and kept the interest rate unchanged as expected on Monday, however markets expect authorities will need to unleash more stimulus to support slowing economic growth. The People's Bank of China (PBOC) said it was keeping the rate on 103 billion yuan ($14.43 billion) worth of one-year medium-term lending facility (MLF) loans to some financial institutions unchanged at 2.65%. In a Reuters poll conducted last week, market participants predicted no change to the MLF rate. Traders and analysts said the rate decision was well expected after the central bank lowered key policy rates last month. With 100 billion yuan worth of MLF loans set to expire this month, the operation resulted a net 3 billion yuan fresh fund injection into the banking system.

Persons: Goldman Sachs, Winni Zhou, Tom Westbrook, Kim Coghill, Sam Holmes Organizations: People's Bank of China, Traders, Communist Party, Goldman, Thomson Locations: SHANGHAI, SINGAPORE, United States, China

☆ China central bank rolls over medium-term policy loans, rate unchanged
▼ + stars: | 2023-07-17 | by ( ) www.reuters.com time to read: +1 min

SHANGHAI/SINGAPORE, July 17 (Reuters) - China's central bank rolled over maturing medium-term policy loans while keeping the interest rate unchanged on Monday, matching market expectations. The People's Bank of China (PBOC) said it was keeping the rate on 103 billion yuan ($14.43 billion) worth of one-year medium-term lending facility (MLF) loans to some financial institutions unchanged at 2.65% from the previous operation. With 100 billion yuan worth of MLF loans set to expire this month, the operation resulted a net 3 billion yuan fresh fund injection into the banking system. The central bank also injected 33 billion yuan through seven-day reverse repos while keeping borrowing costs unchanged at 1.90%, it said in an online statement. China's central bank lowered key policy rates in June to prop up the cooling economy.

Persons: Winni Zhou, Tom Westbrook, Kim Coghill Organizations: People's Bank of China, Thomson Locations: SHANGHAI, SINGAPORE

☆ Oil slips after Libya resumes output, China data eyed
▼ + stars: | 2023-07-17 | by ( Florence Tan | ) www.reuters.com time to read: +2 min

Prices softened after both benchmarks last week notched a third straight week of gains and touched their highest levels since April when output was shut at oilfields in Libya and Shell halted exports of a Nigerian crude, tightening supply. Two of the three Libyan oilfields shut on Thursday, the Sharara and El Feel oilfields with a total production capacity of 370,000 barrels per day (bpd), resumed on Saturday evening, four oil engineers and oil ministry said. Output was halted in protest against the abduction of a former finance minister. There is also some nervousness among traders ahead of another big week ahead for economic data from China, the UK and Japan, he added. Reporting by Florence Tan; Editing by Sonali PaulOur Standards: The Thomson Reuters Trust Principles.

Persons: Tony Sycamore, BoE, Sycamore, Florence Tan, Sonali Paul Organizations: Libya, Brent, West Texas, Shell, Federal Reserve, Market, Thomson Locations: China, SINGAPORE, Libya, Nigerian, El, Russia, Moscow, Saudi Arabia, U.S, Japan

Prices were also unchanged from a year earlier, retreating from a 0.1% increase in May. The property sector, accounting for one-fourth of activity in the world's second-biggest economy, slumped sharply last year as developers defaulted on debts and suspended construction of presold housing projects. Markets widely expect more stimulus around a meeting of the ruling Communist Party's Politburo late this month, setting the tone for economic policies in the second half of the year. Thirty-one of the 70 cities monitored by NBS recorded month-on-month rises in new home prices, down from 46 in May. Prices were flat after rising in May in tier-one cities including Beijing and tier-two cities.

Persons: Chen Xiao, Hunter, Chen, Zou Lan, Goldman Sachs, dampening, Qiaoyi Li, Liangping Gao, Ryan Woo, Kim Coghill, William Mallard Organizations: National Bureau of Statistics, Communist Party's Politburo, Zhuge, NBS, People's Bank of China, Thomson Locations: BEIJING, Beijing

☆ China central bank to use tools such as RRR to tackle economic woes
▼ + stars: | 2023-07-14 | by ( Kevin Yao | ) www.reuters.com time to read: +4 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. The central bank will step up "countercyclical adjustments" to support the economic recovery, PBOC Deputy Governor Liu Guoqiang told the press conference. Analysts polled by Reuters expect the central bank to cut the RRR by 25 basis points in the third quarter. But Liu said China has not seen deflation and there were no deflationary risks for the second half. "As for the specific policy tools, we will use them reasonably according to the needs of the situation."

Persons: Tingshu Wang, Zou Lan, Zou, Liu Guoqiang, Liu, Liangping Gao, Ellen Zhang, Shri Navaratnam, William Mallard Organizations: People's Bank of China, REUTERS, Reuters, Securities Times, Thomson Locations: Beijing, China, BEIJING

☆ China's central bank says consumer prices will likely drop in July
▼ + stars: | 2023-07-14 | by ( Evelyn Cheng | ) www.cnbc.com time to read: +4 min

Jason Lee | ReutersBEIJING – China's consumer prices will likely decline in July before recovering, Liu Guoqiang, deputy governor of the People's Bank of China, told reporters Friday. Official measures of consumer prices have barely changed in the last several months amid tepid demand, in contrast to high inflation in the U.S. and Europe. watch nowThe central bank said in April consumer prices would likely see a "U-shaped" recovery this year. He described the real estate market as "stable" overall, but said that "some real estate companies' long-accumulated risks require a period of time to gradually absorb." He said that was out of "consideration of deep changes in the relationship between supply and demand in [China's] real estate market."

Persons: Jason Lee, Liu Guoqiang, Liu, Bruce Pang, Zou Lan, Zou Organizations: People's Bank of China, Reuters, People's Bank of Locations: Beijing, China, Reuters BEIJING, People's Bank of China, U.S, Europe, JLL

HONG KONG, July 12 (Reuters) - China's major tech companies have shed more than $1 trillion in value -equivalent to the entire Dutch economy - since the government's regulatory crackdown on the sector began more than two years ago, according to Refinitiv data. Reuters GraphicsTechnology stocks (.HSTECH) in Hong Kong have rallied 4.1% since Monday as investors bank on an easing regulatory environment to boost earnings, but some analysts have sounded a note of caution. "Mega-cap tech companies will allocate increasingly large amounts of capital expenditure towards developing generative AI technologies and products in a hostile external environment, potentially impacting profitability," said Redmond Wong, Saxo Markets strategist in Hong Kong. Steven Leung, UOB Kay Hian sales director, said current valuations would last "until we see more supporting policies from authorities". Reporting by Donny Kwok in Hong Kong and Scott Murdoch in Sydney; Editing by Kevin LiffeyOur Standards: The Thomson Reuters Trust Principles.

Persons: Tencent, Redmond Wong, Steven Leung, UOB Kay Hian, Donny Kwok, Scott Murdoch, Kevin Liffey Organizations: People's Bank of China, Tencent Holdings, HK, Alibaba, Baidu Inc, Reuters Graphics Technology, Saxo Markets, Thomson Locations: HONG KONG, Hong Kong, Sydney

SINGAPORE, July 11 (Reuters) - Singapore investment firm Temasek Holdings (TEM.UL) on Tuesday posted a 5.2% drop in its net portfolio value to S$382 billion ($284.65 billion) in the financial year that ended in March. The drop in net portfolio value is its first since the 2019 financial year and came amid intensified global market volatility. Over the last decade, Temasek has grown its net portfolio value by 77.7% to S$382 billion from S$215 billion in 2013. Its portfolio value hit a record high of S$403 billion in the year ending in March 2022. Most of China's tech companies share prices have rallied since Friday on the hope that strict regulations that have stymied growth for more than two years would ease.

Persons: Chin Yee, Temasek, Rohit Sipahimalani, it's, Yantoultra Ngui, Xinghui, Robert Birsel Organizations: Temasek Holdings, Ant Group, Temasek, DBS, China Construction Bank, PSA International, Mapletree Investments, Ant, People's Bank of, Thomson Locations: SINGAPORE, Singapore, China, Asia, Temasek, People's Bank of China

☆ China property shares rise on financial support policy
▼ + stars: | 2023-07-11 | by ( Clare Jim | ) www.reuters.com time to read: +2 min

HONG KONG, July 11 (Reuters) - Shares of Chinese property developers rose on Tuesday after regulators extended some policies in a rescue package introduced in November to shore up liquidity in the embattled sector. Analysts said while the extended policy could ease the short-term financial pressure on property developers and ensure their home project completions, new measures would be needed to tackle the cash crunch in the sector. The sector has been hit by many company defaults amid a debt crisis since mid-2021, triggered by non-repayments of China Evergrande Group (3333.HK), the world's most indebted property developer. Sunac China (1918.HK), Logan Group (3380.HK) and KWG Group (1813.HK) listed in Hong Kong were among the top gainers, rising 4%-5%. Nomura said the "band-aid-style" policy support on Monday is unlikely to revive property sales, which have been weak for months, as it does little to restore home buyers' confidence.

Persons: Nomura, Clare Jim, Himani Sarkar, Sonali Paul Organizations: Analysts, China Evergrande, HK, Mainland Properties, CSI, Logan Group, KWG, People's Bank of China, CIMB Securities, Thomson Locations: HONG KONG, China, Hang, Hong Kong

☆ China PPI: Factory gate prices fall at fastest pace in 7 years
▼ + stars: | 2023-07-10 | by ( ) edition.cnn.com time to read: +2 min

China’s factory-gate prices fell at the fastest pace in over seven-and-a-half years in June, while consumer inflation was at its slowest since 2021, adding to the case for policymakers to use more stimulus to revive sluggish demand. That was the slowest pace since February 2021 and missed the 0.2% rise expected in the Reuters poll. Beijing has set a target for average consumer inflation in 2023 of about 3%. Prices rose 2% year-on-year in 2022. Core CPI, excluding the volatile prices of food and energy, rose 0.4% year-on-year, slowing from 0.6% in the previous month.

Persons: China’s, ”, “ Organizations: National Bureau of Statistics, Capital Economics, CPI Locations: China, Beijing

☆ 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

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