Yuan Rises to Strongest Level since 1993
Source: Bloomberg China’s yuan rose beyond 6.3 per dollar for the first time in 18 years on signs the central bank favours appreciation to prevent capital outflows. The benchmark money-market rate climbed to the highest level since July. The People’s Bank of China set the currency’s reference rate 0.23 per cent stronger at 6.3009,...
US, Europe Woes Hit China Manufacturing
Source: AFP China’s manufacturing activity continued to shrink in December, HSBC said Friday, as economic strife in the key European and US markets hobbled demand for the nation’s goods. The final HSBC purchasing managers’ index (PMI) reached 48.7 in December, slightly better than the 47.7 in November but lower than the preliminary PMI of...
China’s Stocks Rise, Capping Index’s First Back-to-Back Gains in a Month
Source: Bloomberg China’s stocks rose for a second day, with the benchmark index capping its first back-to-back advance in a month, as investors speculated declines were overdone. SAIC Motor Corp, China’s largest carmaker paced gains by automakers after the People’s Daily said the government will boost spending on rural road construction. Sany Heavy Industry...
China’s PBOC Might Suspend Three-Month Bill Sale
Source: Bloomberg The People’s Bank of China may suspend a scheduled sale of three-month bills on Thursday as banks hoard cash before the New Year holidays, pushing money-market rates to the highest since October. The central bank did not gauge demand for the securities this morning, according to two traders who declined to be identified...
Chinese Corporate Profit Growth Slows as Europe, Property Drag on Economy
Source: Bloomberg Chinese industrial companies’ profits growth cooled, adding to evidence the government may need to ease policy to protect the nation’s economic expansion. Net income increased 24.4 per cent in the first 11 months of 2011 from a year earlier to RMB4.66 trillion (US$737 billion), the National Bureau of Statistics said on its website...
China Stocks Drop to Two-year Low on Slowing Profits
Source: Bloomberg China’s stocks fell, driving the benchmark index to a two-year low, after profit growth for industrial companies slowed and a jump in interbank borrowing costs signalled the nation’s cash crunch is worsening. Anhui Conch Cement Co and SAIC Motor Corp dropped more than 2 per cent after a report showed industrial firms’ earnings...
China May Halt Corn Imports Until Price Falls to US$5 a Bushel
Source: Bloomberg China, the second-biggest corn consumer, may import more of the grain if global prices fall 19 per cent to about US$5 a bushel, a level that is significantly below domestic prices, said Yigu Information Consulting Ltd. China’s corn supply is sufficient after a record harvest and the government may import to boost stockpiles...
More China Bankers See Policy Easing as Economy Cools: Central Bank
Source: Bloomberg More Chinese bankers are forecasting a further loosening in monetary policy as economic growth slows, and inflation expectations of households are easing, surveys by the central bank showed. The percentage of bankers who said the economic environment is “relatively cold” doubled to 23.6 per cent this quarter from the previous three months, while...
China’s Pension Fund Invests US$1.6 billion in Shares
Source: AFP China’s national pension fund has invested RMB10 billion (about US$1.6 billion) into the country’s stock market, state media reported Wednesday, as Beijing moves to boost support for flagging shares. The National Council for Social Security Fund injected the funds last Friday, the Shanghai Securities News said, without citing sources. Chinese shares surged more...
China Stocks Fall for Second Day as Profit Concerns Outweigh Easing Prospects
Source: Bloomberg China’s stocks fell for a second day as concern earnings growth will slump outweighed speculation the government will ease monetary policies to boost economic growth. Aluminum Corp of China Ltd retreated 0.6 per cent after Shenyin & Wanguo Securities Co cut its profit forecast for China’s biggest producer of the metal. Shippers China...
China Currency Data Signals Unprecedented Second Month of Capital Outflows
Source: Bloomberg Chinese central bank data signalled that capital flowed out of the nation for a second month in November, as bets for yuan appreciation diminished. Yuan positions at financial institutions accumulated from foreign-exchange purchases stood at RMB25.46 trillion (US$4 trillion) as of the end of November, down RMB27.9 billion in the month, People’s Bank...
New China Life Jumps in Shanghai Debut as Asia Stocks Rebound
Source: Bloomberg New China Life Insurance Co jumped in its Shanghai trading debut after offering shares at a lower valuation than its biggest rival and as Asian equity markets rebounded from three days of losses. Shares in the nation’s third-largest life insurer surged 14 per cent from its initial public offering price to close at...
