China

  • 2020-06-10 04:00


    By Greg Quinn

    PARIS (MNI) - Global GDP will fall at least 6% this year to usher in the steepest income decline in more than a century, forcing central banks and governments to prolong "ultra-accommodative monetary policies and higher public debt" the OECD said Thursday.

    Output may decline 7.6% in 2020 if there is a second Covid-19 wave, the Paris-based group's report said, warning "the recovery will not gain steam without more confidence, which will not fully recover without global cooperation" improving health and economic outcomes.

    "Both scenarios are sobering, as economic activity does not and cannot return to normal under these circumstances.

  • 2020-04-29 05:49


    By Archie Zhang

    BEIJING (MNI) - China's economy may grow 3% this year if the global pandemic is under control through the second half of the year, Wei Benhua, a former deputy administrator of China's State Administration of Foreign Exchange (SAFE), said in an online forum held jointly Wednesday by the International Monetary Institute at Renmin University and the International Monetary Fund.

    Here are other major points from the event:

    - China has more room for monetary and fiscal policies to help stimulate the economy, including further cutting banks' reserve requirement ratios and lowering rates to inject more liquidity, Wei said.

    - Steven Barnett, head of the IMF's China legation, noted that China will not launch fiscal stimulus to the same extent as the 8% of GDP

  • 2020-04-19 21:43


    BEIJING (MNI) - China's central bank cut its one-year Loan Prime Rate (LPR) by 20 bps to 3.85% on Monday, the biggest reduction since the LPR mechanism reform last August. The central bank also cut the five-year LPR by 10 bps to 4.65%.

    The reductions, announced in a statement on the People's Bank of China (PBOC) website, are in line with market expectations after the central bank lowered interbank borrowing costs earlier this month. MNI last Thursday also signalled the LPR would be guided lower by 20 bps.

  • 2020-04-03 05:43


    BEIJING (MNI) - The People's Bank of China (PBOC) announced Friday it would cut the reserve requirement ratio for selected banks, releasing CNY400 billion into the system to shore up the virus-hit economy.

    The central bank lowered RRRs by one percentage point for over 4,000 rural financial institutions and city commercial banks, the third move this year. The cut will be implemented on April 15 and May 15, lowering 50bps each time, according to a statement on the bank's website.

    Each small and medium-sized bank can obtain about CNY100 million of long-term funds on average, and their RRRs have been reduced to 6% following the cuts, an historically low level, the PBOC said.

  • 2020-03-13 06:27


    BEIJING (MNI) - The People's Bank of China (PBOC) cut selected banks' reserve requirement ratios Friday, releasing CNY550 billion into the system to shore up the virus-hit economy.

    The central bank lowered RRRs by 0.5 to 1 percentage point, the second move this year, allowing banks to meet their annual assessment criteria for enforcing inclusive finance policy, expected to release CNY400 billion, according to a statement on its website.

    Qualified joint-stock commercial banks will receive another 1 pp cut, releasing another CNY150 billion, according to the statement. Banks receiving the cut must lower loan rates "markedly" to expand credit to small and medium-sized private companies, the PBOC said.

    All cuts will take effect on March 16, the PBOC said.

  • 2020-02-24 05:21


    BEIJING (MNI) - The People's Bank of China will lower the reserve ratio requirement for targeted banks further and adopt more tools to support small and medium enterprises impacted by the coronavirus epidemic, Deputy Governor Chen Yulu said on Monday.

    Commercial banks are being encouraged to sell more special financial bonds to boost capital to increase lending to small firms, Chen said at a press conference.

    Here are other takeaways:

    - Non-performing loan ratios for SMEs are "a bit" higher than the overall 1.86%, but still below the regulatory standard 5%, according to Chen.

  • 2020-02-19 22:30


    BEIJING (MNI) - China's central bank cut its one-year Loan Prime Rate (LPR) by 10 bps to 4.05% on Thursday while also cutting the five-year LPR by 5 bps to 4.75%.

    The reductions, announced in a statement on the People's Bank of China (PBOC) website, are in line with market expectations after the central bank lowered interbank borrowing costs earlier this month.

    A MNI story on Monday also signalled the LPR would be guided lower.

  • 2020-02-16 21:44


    By Archie Zhang

    BEIJING (MNI) - China's current account is likely to register a surplus as the phase-one trade deal boosted trade and inflows foreign investment rose, Xuan Changneng, the deputy administrator of State Administration of Foreign Exchange (SAFE), said at a briefing on Saturday.

    China will keep a basic balance in international payments despite the coronavirus epidemic, the impact of which is short-term and limited, Xuan said.

    Here are other major points from a joint press conference by several ministries:

    - China won't see a large-scale inflation, even as interrupted businesses affect supplies, according to Fan Yifei, a deputy governor of the People's Bank of China.

  • 2020-02-14 06:55


    BEIJING (MNI) - China's bank regulator has asked banks to ease requirements on non-performing loans (NPLs) and reduce the lending rate charged to small businesses by more than 0.5 percentage point this year, said Li Junfeng, director of the Inclusive Finance Department of the China Banking and Insurance Regulatory Commission.

    Loans with modest overdue payments because of the coronavirus outbreak won't count as NPLs or affect small businesses' credit ratings, Li said at a press briefing on Friday.

  • 2020-02-11 14:40


    --Soft Landing Still Reasonable Forecast for U.S. Economy in 2020

    WASHINGTON (MNI) - China's coronavirus outbreak adds to other risks threatening a soft landing for the U.S. economy this year, St. Louis Fed President Jim Bullard said Tuesday.

    "Experience with previous viral outbreaks suggests that the effects on U.S. interest rates can be tangible and last until the outbreak is clearly contained," he said, pointing to the effects on the 10-year Treasury yield of other viral outbreaks such as SARS, swine flu, avian flu and Ebola.

    In the case of swine flu, the 10-year yield fell nearly 60 bps about a month into the outbreak before rebounding.