China - PBOC, CIC, SAFE, NSSF, Central Huijin, NDRC etc.

[winston]

CICC: Reducing Need for Lower ST Open Mkt Operation Rates in CN by Policy Financial Tools

CICC wrote in a report that the market has been particularly concerned about the recent adjustment in policy rates.

The broker noted that investors who follow US interest rates are particularly concerned about inflation in terms of fundamental indicators, which is an important background indicator for interest rate adjustments.

In terms of market indicators, they are particularly concerned about the expectation of a rate cut implied by the interest rate futures market, which provides a precursor to the timing of a rate cut.

As for China's interest rates, CICC believed that nominal growth and asset prices are important background indicators for policy rate adjustments, while bill rates and derivatives quotes are important leading indicators.

However, given the diversity of China's monetary policy objectives, the focus of policy is different at different times, and the policy tools used are also different.

While the conditions are largely ripe for an internal interest rate cut, the recent release of policy financial instruments, as well as other interest rate reductions, have reduced the need for a general interest rate cut in the short term, such as a reduction in the policy rate.

CICC pointed out that to further track and judge the timing of the central bank's adjustment of the open market operating rate based on background indicators, it is also necessary to combine some of the market's prelude indicators, and that two types of indicators are worth paying attention to.

The first is the more sensitive capital market and credit market indicators, mainly referring to DR007 and bill rates.

The second category is derivatives quotes, which to a certain extent can gauge the market's expectation of policy rate adjustments.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

[winston]

Head of CN NDRC Communicates with JD & Other Private Firms on Large-scale Equipment Renewal, Consumer Goods Replacement

Zheng Shanjie, head of the National Development and Reform Commission (NDRC) of China hosted the first thematic seminar for large-scale equipment renewal and consumer goods replacement this morning (2nd), conducting in-depth exchanges and discussions with the person in charge of private enterprises like JD Group, Midea Group, Haier Group and Gree Electric Appliances, on the next step in the implementation of the relevant work.

Related News - JPM: Improved CN Biz & Earnings Cycles Can Support CN Mkt; Div. Surprises from CHINA MOBILE, TENCENT, BYD & Others

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/analy ... stock-news

[winston]

China Central Bank keeps policy rate unchanged, drains cash from banking system

China's central bank on Monday left a key policy interest rate unchanged as widely expected when rolling over maturing medium-term loans and drained some cash from the banking system through the bond instrument.

Cooling inflation, slowing credit expansion and shrinking exports in March all pointed to the need for more stimulus to revive momentum in the world's second-largest economy, analysts said.

But a weakening yuan on the back of a resurgent U.S. dollar and yield differentials with other major economies constrained authorities' monetary-easing efforts.

With 170 billion yuan worth of MLF loans set to expire this month, the operation resulted in a net 70 billion yuan of fund withdrawal from the banking system.

Source: Reuters

https://www.thestandard.com.hk/breaking ... ing-system