Link Secutities | The People’s Bank of China (PBoC) today injected a net cash amount of ¥958.4 billion via 7-day reverse repurchase agreements in its daily open market operations. This is the second-largest-ever cash injection, according to Bloomberg. The operation is aimed at offsetting the impact of maturing medium-term lending facilities (MLF), as well as coping with higher demand for cash ahead of the Lunar New Year holidays, and peak…

Bankinter: The one-year rate, which is the benchmark for corporate loans, remained at 3.10%. The five-year rate, which is the benchmark for mortgage loans, remained at 3.60%. In October, commercial banks cut these rates by -25bp following the PBOC cut that was part of a stimulus plan to revitalise the economy approved at the end of September. Market sentiment: This pause in the process of rate cuts by commercial banks…

Link Securities | Last Friday, as reported by CNBC, Chinese authorities announced that the central government will allocate an additional CN¥6 trillion ($840 billion) to local governments to address hidden debt problems. The programme will take effect this year and run until the end of 2026, China’s finance minister Lan Fo’an told reporters. The aid will be spread over about CN¥2 trillion a year. Lan added that starting this year,…

Banca March | China has kicked off two programmes totalling up to ¥800 billion ($122.38 billion) aimed at facilitating share buybacks and providing greater liquidity to the markets. Some ¥500 billion will be granted to the swap programme, which allows the exchange of assets – such as corporate bonds or shares of CSI 300 companies – in exchange for highly liquid securities such as government bonds, making it easier for…

Banca March: The Asian country has opted to retaliate after EU member states voted on Friday to impose levies of up to 45% on electric vehicles of Chinese origin. China’s measures on spirits amount to 39%, taking effect on Friday 11 October. The main country affected will be France, where China accounted for 99% of exports of the drink. The EU has already announced that it will take the disagreement…

Bankinter: The Development and Reform Commission has announced a new fiscal stimulus package of CNY 200 billion (approx. $28 billion) to ensure that growth reaches the 5% target. The measures will be structured in two tranches. In the first, CNY 100bn ultra-long bonds will be issued to develop as yet unspecified projects, and in the second, the same amount will be earmarked for a series of strategic investments, of which…

Bankinter: First data on Golden Week spending: international daily travel is estimated to have increased +19% year-on-year, surpassing pre-covid levels. On the first day of this holiday week, foreign travel increased 40%, according to Trip.com (up 30% to Europe) and rail travel reached record highs. According to Alipay, tourists who have travelled abroad have spent 120% more than last year. Other indicators, however, such as travel to Hong Kong showed…