Latest news with #CaitongSecurities
Business Recorder
3 days ago
- Business
- Business Recorder
China's central bank injects 700bn yuan of outright reverse repos in May
SHANGHAI: China's central bank has injected 700 billion yuan ($97 billion) into its banking system during May through an outright reverse repurchase tool, the bank said on Friday. The operations, conducted with tenors of three and six months, were aimed at maintaining 'reasonably ample liquidity' in the banking system, the PBOC said in a statement. With 900 billion yuan in outright repos expiring this month, the data suggests a net withdrawal of 200 billion yuan from the system via the tool. In a separate statement, the PBOC said on Friday that it had refrained from buying or selling Chinese government bonds in open market operations for the fifth consecutive month in May. Market participants are closely watching for signals on when the PBOC will resume purchases of its own government bonds. China central bank eases policy ahead of US trade meeting 'Amid rising risks of U.S.-China decoupling, there is growing urgency to resume government bond trading to increase the central bank's holdings of sovereign debt,' analysts at Caitong Securities said in a note on Thursday. The analysts expect the PBOC to resume bond buying as early as July or August, amid concerns that a potential end to the tariff truce between China and the United States could weigh on economic sentiment.
Business Times
3 days ago
- Business
- Business Times
China's central bank injects 700 billion yuan of outright reverse repos in May
[SHANGHAI] China's central bank has injected 700 billion yuan (S$125.5 billion) into its banking system during May through an outright reverse repurchase tool, the bank said on Friday (May 30). The operations, conducted with tenors of three and six months, were aimed at maintaining 'reasonably ample liquidity' in the banking system, the PBOC said in a statement. With 900 billion yuan in outright repos expiring this month, the data suggests a net withdrawal of 200 billion yuan from the system via the tool. In a separate statement, the PBOC said on Friday that it had refrained from buying or selling Chinese government bonds in open market operations for the fifth consecutive month in May. Market participants are closely watching for signals on when the PBOC will resume purchases of its own government bonds. 'Amid rising risks of US-China decoupling, there is growing urgency to resume government bond trading to increase the central bank's holdings of sovereign debt,' analysts at Caitong Securities said in a note on Thursday. The analysts expect the PBOC to resume bond buying as early as July or August, amid concerns that a potential end to the tariff truce between China and the United States could weigh on economic sentiment. REUTERS
Reuters
3 days ago
- Business
- Reuters
China's central bank injects 700 bln yuan of outright reverse repos in May
SHANGHAI, May 30 (Reuters) - China's central bank has injected 700 billion yuan ($97 billion) into its banking system during May through an outright reverse repurchase tool, the bank said on Friday. The operations, conducted with tenors of three and six months, were aimed at maintaining "reasonably ample liquidity" in the banking system, the PBOC said in a statement. With 900 billion yuan in outright repos expiring this month, the data suggests a net withdrawal of 200 billion yuan from the system via the tool. In a separate statement, the PBOC said on Friday that it had refrained from buying or selling Chinese government bonds in open market operations for the fifth consecutive month in May. Market participants are closely watching for signals on when the PBOC will resume purchases of its own government bonds. "Amid rising risks of U.S.-China decoupling, there is growing urgency to resume government bond trading to increase the central bank's holdings of sovereign debt," analysts at Caitong Securities said in a note on Thursday. The analysts expect the PBOC to resume bond buying as early as July or August, amid concerns that a potential end to the tariff truce between China and the United States could weigh on economic sentiment. ($1 = 7.1947 Chinese yuan renminbi)
Business Recorder
08-05-2025
- Business
- Business Recorder
China markets trim gains as stimulus, trade talk optimism wane
HONG KONG: Chinese stocks pared early gains on Wednesday, while the bond and currency markets barely budged, as traders said the central bank's latest easing measures offered few surprises and doubts persisted over prospects for a US-China trade deal. The blue-chip CSI 300 Index climbed 0.6% while the Shanghai Composite Index added 0.8%, both pulling back from an earlier advance. Hong Kong's benchmark Hang Seng Index closed flat after rallying more than 2% at the open. Reaction was muted in bond and currency markets, with investors saying monetary easing was already priced. China's central bank will lower the benchmark interest rate and inject liquidity into the banking system, among other easing measures, Governor Pan Gongsheng said on Wednesday, to stimulate economic growth and mitigate the impact of a trade war. The announcements came just hours after US and Chinese officials said US Treasury Secretary Scott Bessent and chief trade negotiator Jamieson Greer will meet China's top economic official He Lifeng in Switzerland this weekend for trade talks. 'The market had been expecting reserve requirement ratio (RRR) and rate cuts since late last year, so there's nothing surprising,' said Yu Huiwu, hedge fund manager at Junze Fund Management Co. 'Contact between China and the US on trade is something people expected would happen sooner or later, but a trade deal is not yet in sight.' China's government bond yields showed mixed reactions to the rate decision. One-year bond yield dropped 1.45 bps, while the 10-year yield rose 2 bps. Prices of China's 30-year treasury futures, which move inversely to yields, fell 0.64%. 'The market has not seen an increase in fiscal stimulus yet,' Xiong Yuxiang, strategist at Caitong Securities said, explaining the market's relative calmness. 'Easing liquidity is just the first step' toward fresh fiscal policies.
Reuters
27-03-2025
- Business
- Reuters
China accelerates government bond issuance in Q1 to highest on record
SHANGHAI, March 27 (Reuters) - China stepped up fiscal support and accelerated the pace of government bond issuance to the highest on record in the first quarter of this year, according to Reuters calculations based on official data. WHY IT'S IMPORTANT Market watchers believe China will adopt a more expansionary fiscal policy to stabilise economic growth this year as higher tariffs and lingering trade tensions with the United States could take tolls on economy. BY THE NUMBERS The finance ministry issued a total of about 3.28 trillion yuan ($451.56 billion) worth of government bonds in the January to March period of this year, the highest level on record, according to Reuters calculations based on official data. Excluding maturities, government bond issuance rose to 1.45 trillion yuan on a net basis in the first quarter of 2025, tripling the amount during the same period a year earlier and booking the highest quarterly issuance on record. Sun Binbin, analyst at Caitong Securities, said total bond issuance, which includes government bonds, special treasury bonds and local government bonds, would amount 11.36 trillion yuan this year, 2.4 trillion yuan more than that in 2024. CONTEXT Beijing plans to issue 1.3 trillion yuan in ultra-long special treasury bonds this year, up from 1 trillion yuan in 2024. Local governments will be allowed to issue 4.4 trillion yuan in special debt. Earlier in March, finance minister Lan Foan left the door open to more stimulus measures if the higher budget deficit and debt issuance plans announced during the National People's Congress were deemed insufficient in the future. ($1 = 7.2637 Chinese yuan)
