• 2019-06-14 07:14

    BEIJING (MNI) - China's macroeconomic indicators continue to show weakness in the May data prints, with both industrial output and fixed-asset investment (FAI) slipping below expectations, although retail sales picked up on strong May holiday demand.

    As downside risks grow, ANZ expects the People's Bank of China (PBOC) to send more supportive signals in the not too distant future. Besides a further 100 bps cut in the reserve requirement ratio over the rest of the year, ANZ also expects the central bank to lower the 7-day reverse repo rate by 5 bps in Q3 following a U.S.

  • 2019-06-02 22:23

    BEIJING (MNI) - The Caixin China manufacturing Purchasing Managers Index (PMI) recorded 50.2 in May, unchanged from April and in the expansion zone above 50 for the third consecutive month.

    New orders, which indicate future activity levels, accelerated rapidly with the growth rate slightly faster than in April, Caixin said in a statement. New export orders rebounded significantly to a high level.

    Many manufacturers surveyed said that recovering external demand and new product launches had driven the growth in new orders.

    The manufacturing industry's confidence fell to the lowest level since April 2012 when the index was first compiled, as manufacturers worry about the escalation of the China-U.S.

  • 2019-05-27 04:21

    BEIJING (MNI) - The People's Bank of China (PBOC), China's central bank, said on Sunday it will use open market operations and other tools to ensure "reasonable and ample liquidity" to deal with any potential impact after taking over a failing small domestic lender.

    Authorities seized the Inner Mongolia-based Baoshang Bank after learning it posed serious credit risks, and the China Construction Bank (CCB) is entrusted to manage its business operations, the central bank said.

    The takeover by the top regulators ensures that the Baoshang Bank maintains a national-level credit standing, the PBOC said.

    Personal savings as well as corporate deposits and interbank liabilities below CNY50 million held by Baoshang Bank will be covered by the PBOC, the China Banking and Insur

  • 2019-05-20 01:05

    BEIJING (MNI) - China's central bank is confident and capable of maintaining the stability of the yuan exchange rate at a balanced level, according to Pan Gongsheng, vice governor of the People's Bank of China.

    In a statement on the PBOC website posted late on Sunday, Pan said that foreign capital inflows have increased and forex reserves have risen steadily since the beginning of this year.

    Pan, who is also the director of the State Administration of Foreign Exchange told the PBOC-run newspaper Financial News that healthy macroeconomic fundamentals, rapid credit growth and moderate monetary and financial conditions would provide strong support for the forex market and the yuan.

    He said the PBOC would carry out the necessary counter-cyclical adjustments and strength

  • 2019-05-15 05:10

    BEIJING (MNI) - China's macroeconomic indicators in April failed to match March's apparent strengths or market forecasts, raising speculation for further stimulus to shore up sentiment as an escalated trade war with the U.S. stirs up unease.

    Rather than using broad-based monetary easing and policy rate cuts, policymakers will favor targeted monetary policies, industrial subsidies, and fiscal policy, including tax cuts, to counter the downside risks, ANZ said in a note sent to MNI.

    Retail sales hit a 16-year low in April, while industrial output fell sharply from a four-and-a-half-year high in March, data released by the National Bureau of Statistics (NBS) on Wednesday showed.

  • 2019-05-10 11:04

    BEIJING (MNI) - The People's Bank of China (PBOC) has ample tools to deal with external and domestic uncertainties and will continue with structural measures to support private small businesses and stabilize economy, officials told reporters during a briefing Friday after Washington imposed higher tariff against Chinese exports. Here are some of the main takeaways:

    - The trade conflict with the U.S. has weighed on sentiment more than the real economy, and China has confidence that its economy will be stabilized, as supported by major indicators, including Q1 GDP, inflation and money supply, said Zhou Xuedong, spokesman and director of the general executive office of the PBOC.

  • 2019-04-29 22:57

    BEIJING (MNI) - The Caixin China manufacturing Purchasing Managers Index (PMI) decelerated 0.6 points to 50.2 in April, remaining in the expansion zone at above 50 for the second consecutive month.

    New orders, which indicate future activity levels, have slowed from March as has manufacturing output, Caixin said in a statement.

    The Caixin figure was in line with the downward trend of the official PMI, reported by the National Bureau of Statistics the same day and which decelerated to 50.1 from 50.5 in March.

    The Caixin PMI tracks small and medium sized manufacturers which are not surveyed by the NBS.

    New export orders fell back into contraction territory after a small decline, Caixin said.

  • 2019-04-25 03:18

    BEIJING (MNI) - China's economy saw a "good recovery" in the first quarter, so policymakers should "wait and see" before further cutting the reserve requirement ratios for banks and further loosening liquidity, Li Daokui, a former member of the People's Bank of China monetary policy committee, told reporters Thursday.

    "The economy has basically stabilized," Li said on the sidelines of the Belt and Road forum in Beijing. There needs to be continued policy dialogues first, said Li without elaborating.

  • 2019-04-18 02:55

    BEIJING (MNI) - China's current account may continue a surplus in the first quarter on exports of goods and services remaining strong, the State Administration of Foreign Exchange (SAFE) said.

  • 2019-04-18 01:31

    BEIJING (MNI) - China's strong growth in the first quarter lifted the government's confidence in meeting all economic and social development targets this year, the National Development and Reform Commission said on Thursday.

    Here are some highlights noted by MNI from a briefing by spokesman Yuan Da.

    - The advancement of traditional and emerging industries, robust consumer demand, stable investment and recovering trade growth assured policymakers that they are on the right path. Q1's economic indicators are usually the bellwether of the whole-year growth.

    - The commission will strictly prevent and resolve risks of hidden debt raised by local governments and closely validate their applications for construction projects.