CHINA PRESS: FXWW

From the FXWW Chatroom: China’s central bank will conduct its open market operations (OMO) at a proper and steady pace to stabilize liquidity in the interbank market amid rising needs for cash in the oncoming Chinese New Year holiday, Financial News reported citing market sources and analysts. – Corporate tax payment season has passed; – Planned targeted reduction in reserve requirement ratio and contingent reserve arrangement programs will boost liquidity, News said. ***COMMENT: PBOC is improving communication via regular OMO to smoothen market expectation and maintain steadiness.
CHINA PRESS: Chinese banks have seen deposits slowing, while loans continue to increase, the 21st Century Business Herald reported. – Deposits at by non-banking financial institutions sharply declined last year following stricter regulations on interbank transactions and the appeal of the wealth management products; – Mortgage loan growth slowed on property purchase curbs; – Corporate loan increased on robust economy. ***COMMENT: PBOC is expected to hikes deposit rates to encourage household saving, leaving lending rates unchanged to help boost growth.
CHINA PRESS: China’s housing sales will likely decline in 2018 while price may gain slightly, the Economic Information Daily reported, citing Ouyang Jie, vice president of Future Land Corporation. Gov’t curbs on the property sector will likely remain for the next five years, so the restrictions on obtaining mortgages, property purchases and price gains will continue, the newspaper said. ***Comment: China’s property market will continue to be under administrative heavy-handedness with restricted capital discouraging purchases and investments.

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