China’s Market News: The PBOC Revises Yuan Reference Rate Mechanism
Monday, Feb 20, 2017 11:01 am -08:00
by Renee Mu, Currency Analyst
This daily digest focuses on Yuan rates, major Chinese economic data, market sentiment, new developments in China’s foreign exchange policies, changes in financial market regulations, as well as market news typically available only in Chinese-language sources.
- The PBOC has reduced the reference period of Yuan trading against basket currencies since Feb. 20.
- Chinese regulators will use multiple measures, including tax and land policies to stabilize housing prices.
- Would you like to know more about trading? DailyFX webinars are a great place to start..
Yuan Rates
-On Monday, the PBOC weakened the Yuan against Dollar through the daily fix following four consecutive increases last week, by -287 pips or -0.42% to 6.8743.
The mechanism for calculating the Yuan fix has been revised since February 20th according to Yicai, a Chinese media of financial information. Multiple Chinese banks providing quotes to the China Foreign Exchange Trade System (CFETS) told the news agency that the reference period of Yuan trading against basket currencies has been reduced to 15 hours from 24 hours; the new reference period now is from 4:30pm (3:30am EST) to 7:30am the next day (6:30pm EST).
This revised calculation approach could reduce the impact of interday moves in the U.S. Dollar on Yuan’s reference rates. Although neither the CFETS nor the PBOC issued any official announcement, the news has been widely reported by the Chinese media during the early afternoon of the Asian session. The offshore Yuan weakened following the release of these reports, with the USD/CNH rising to 6.8624 as of 4pm Beijing time (5am EST).
USD/CNH 1-hour
Prepared by Renee Mu.
- Last week, the Chinese currency has gained not only against the U.S. Dollar but also against a basket of currencies. According to the CFETS, three Yuan indexes all increased on a weekly basis: the CFETS Yuan Index, BIS Yuan Index and SDR Yuan Index rose +0.18%, +0.19% and +0.42% respectively to 94.21, 95.48 and 95.92.
Data downloaded from Bloomberg; chart prepared by Renee Mu.
Market News
Sina News: China’s most important online media source, similar to CNN in the US. They also own a Chinese version of Twitter, called Weibo, with around 200 million active usersmonthly.
- China will strictly limit credit issued to speculative property purchasers, according to PBOC’s fourth-quarter Monetary Policy Implementation Report released last Friday. Compared to the third-quarter report, the regulator adds a special column in the fourth-quarter report to discuss “China’s asset prices, monetary policy and financial policies on the housing market”.
“China’s housing market has two unique characteristics: A) A major price difference between tier-one/two cities and tier-three/four cities, and B) low elasticity in home demand. The county’s goal is to curb property price bubbles while prevent extreme price moves at the same time. In order to achieve this goal, regulators will use financial tools to restrict lending for property market speculation, but also will introduce land and tax measures to deal with the structural imbalance seen in the housing market.”
Looking forward, the regulator may continue to use home loans as a key indicator to evaluate short-term liquidity.
Hexun News: Chinese leading online media of financial news.
- China plans to cut 50 million tons of coal production in 2017, according to a statement released by the National Bureau of Energy. Reducing excessive production is one of the country’s top goals this year. In 2016, China cut 250 million tons of coal production and 45 million tons of steel production. However, this has not led to a fundamental improvement in China’s energy sector. According to their annual reports or estimated performance reports, Anyuan Industrial and four other coal mining companies had a net loss in 2016; Datong Coal Industry and China National Coal Group both reported a net gain, yet resulting from assets sales rather than from their core business. China Coal Association told in January that coal companies will need more time to recover.
- Hong Kong Stock Exchange (HKEX) announced to launch USD/CNH options beginning on March 20th, the first currency options to be traded at HKEX. This provides a new tool for investors to either speculate or hedge against the Yuan exchange rate, in addition to CNH futures. HKEX accounts for about two-thirds of the open interest for all the worlds’ exchange-traded USD/CNH futures, according to the exchange.
https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/china_news/2017/02/20/Chinas-Market-News-The-PBOC-Revises-Yuan-Reference-Rate-Mechanism-.html?utm_source=AWeber&utm_medium=Mu&utm_campaign=em
Monday, Feb 20, 2017 11:01 am -08:00
by Renee Mu, Currency Analyst
This daily digest focuses on Yuan rates, major Chinese economic data, market sentiment, new developments in China’s foreign exchange policies, changes in financial market regulations, as well as market news typically available only in Chinese-language sources.
- The PBOC has reduced the reference period of Yuan trading against basket currencies since Feb. 20.
- Chinese regulators will use multiple measures, including tax and land policies to stabilize housing prices.
- Would you like to know more about trading? DailyFX webinars are a great place to start..
Yuan Rates
-On Monday, the PBOC weakened the Yuan against Dollar through the daily fix following four consecutive increases last week, by -287 pips or -0.42% to 6.8743.
The mechanism for calculating the Yuan fix has been revised since February 20th according to Yicai, a Chinese media of financial information. Multiple Chinese banks providing quotes to the China Foreign Exchange Trade System (CFETS) told the news agency that the reference period of Yuan trading against basket currencies has been reduced to 15 hours from 24 hours; the new reference period now is from 4:30pm (3:30am EST) to 7:30am the next day (6:30pm EST).
This revised calculation approach could reduce the impact of interday moves in the U.S. Dollar on Yuan’s reference rates. Although neither the CFETS nor the PBOC issued any official announcement, the news has been widely reported by the Chinese media during the early afternoon of the Asian session. The offshore Yuan weakened following the release of these reports, with the USD/CNH rising to 6.8624 as of 4pm Beijing time (5am EST).
USD/CNH 1-hour
Prepared by Renee Mu.
- Last week, the Chinese currency has gained not only against the U.S. Dollar but also against a basket of currencies. According to the CFETS, three Yuan indexes all increased on a weekly basis: the CFETS Yuan Index, BIS Yuan Index and SDR Yuan Index rose +0.18%, +0.19% and +0.42% respectively to 94.21, 95.48 and 95.92.
Data downloaded from Bloomberg; chart prepared by Renee Mu.
Market News
Sina News: China’s most important online media source, similar to CNN in the US. They also own a Chinese version of Twitter, called Weibo, with around 200 million active usersmonthly.
- China will strictly limit credit issued to speculative property purchasers, according to PBOC’s fourth-quarter Monetary Policy Implementation Report released last Friday. Compared to the third-quarter report, the regulator adds a special column in the fourth-quarter report to discuss “China’s asset prices, monetary policy and financial policies on the housing market”.
“China’s housing market has two unique characteristics: A) A major price difference between tier-one/two cities and tier-three/four cities, and B) low elasticity in home demand. The county’s goal is to curb property price bubbles while prevent extreme price moves at the same time. In order to achieve this goal, regulators will use financial tools to restrict lending for property market speculation, but also will introduce land and tax measures to deal with the structural imbalance seen in the housing market.”
Looking forward, the regulator may continue to use home loans as a key indicator to evaluate short-term liquidity.
Hexun News: Chinese leading online media of financial news.
- China plans to cut 50 million tons of coal production in 2017, according to a statement released by the National Bureau of Energy. Reducing excessive production is one of the country’s top goals this year. In 2016, China cut 250 million tons of coal production and 45 million tons of steel production. However, this has not led to a fundamental improvement in China’s energy sector. According to their annual reports or estimated performance reports, Anyuan Industrial and four other coal mining companies had a net loss in 2016; Datong Coal Industry and China National Coal Group both reported a net gain, yet resulting from assets sales rather than from their core business. China Coal Association told in January that coal companies will need more time to recover.
- Hong Kong Stock Exchange (HKEX) announced to launch USD/CNH options beginning on March 20th, the first currency options to be traded at HKEX. This provides a new tool for investors to either speculate or hedge against the Yuan exchange rate, in addition to CNH futures. HKEX accounts for about two-thirds of the open interest for all the worlds’ exchange-traded USD/CNH futures, according to the exchange.
https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/china_news/2017/02/20/Chinas-Market-News-The-PBOC-Revises-Yuan-Reference-Rate-Mechanism-.html?utm_source=AWeber&utm_medium=Mu&utm_campaign=em
Today at 5:58 am by Rocky
» Al-Khanjar: The Democratic boycott of the elections puts the future of Iraq in danger
Today at 5:55 am by Rocky
» Iraq is ranked seventh in the Arab world and 33rd globally in the misery index
Today at 5:54 am by Rocky
» Trade announces the achievement of self-sufficiency in ration card materials
Today at 5:52 am by Rocky
» Finance releases funding for state employees’ salaries for the month of March
Today at 5:51 am by Rocky
» Elon Musk: 20 seats won by Biden and his party with the votes of “illegal immigrants”
Today at 5:50 am by Rocky
» A "paradigm shift" awaits the regions of the belt and outskirts of Baghdad
Today at 5:47 am by Rocky
» “Speicher and Malwiya Fund”..Parliamentary Finance talks about “illegal fees” in state departments
Today at 5:46 am by Rocky
» Government admission of the failure of the meter campaign: Generators’ compliance is “almost non-exi
Today at 5:44 am by Rocky
» Iraq is proceeding with the zero nuclear reactor project.. Find out its details
Today at 5:42 am by Rocky
» The decision to “reduce exports”... “unplanned” production for Kurdistan will cost Baghdad half a bi
Today at 5:41 am by Rocky
» The powers of Kurdistan.. The Federal Court confirms its commitment to what was agreed upon by the “
Today at 5:39 am by Rocky
» Launching funding for state employees’ salaries for the month of March
Today at 5:38 am by Rocky
» Iraq and Syria top the "least safe" Arab countries
Yesterday at 8:23 am by Rocky
» Governor of Baghdad: 20 projects will be included during the current year in the city of Nahrawan
Yesterday at 8:20 am by Rocky
» More than $242 million in central bank sales today
Yesterday at 8:17 am by Rocky
» Advisor: Sudanese is determined to close the displacement file
Yesterday at 8:14 am by Rocky
» Al-Sudani: The implementation of the 2023 budget witnessed a success that must be invested in
Yesterday at 8:13 am by Rocky
» The Baghdad Council will decide on the nomination of the committees in the coming days
Yesterday at 8:10 am by Rocky
» Al-Samarrai: The Sunni community is not in favor of removing American forces
Yesterday at 8:08 am by Rocky
» A warning from Al-Rasheed to those wishing to apply for advances and loans
Yesterday at 8:06 am by Rocky
» Azerbaijan expresses its desire to participate in the implementation of joint projects in the oil an
Yesterday at 8:05 am by Rocky
» Fuel cards arouse citizens' discontent
Yesterday at 8:03 am by Rocky
» utube 3/18/24 MM&C Iraqi Dinar-- IQD-- Dinar Update -100% Electronic - Real Effective Exchange Rat
Yesterday at 6:21 am by Rocky
» utube MM&C 3/16/24 0:05 / 18:16 Iraq Federal Court Brings - Strength to Financial - Politic
Yesterday at 6:18 am by Rocky
» MM&C 3/18/24 Sudanese Advisor: Iraq will leave government monetary dealing in mid-2024
Yesterday at 6:17 am by Rocky
» A delegation from the Kurdistan government visits Baghdad to discuss the issue of localization of sa
Yesterday at 6:11 am by Rocky
» Director of the Central Oil Company: We are keen to provide the appropriate investment environment
Yesterday at 6:10 am by Rocky
» The Energy Parliament calls for reporting generators violating government pricing
Yesterday at 6:08 am by Rocky
» A representative reveals the fate of the laws of “previous sessions”
Yesterday at 6:07 am by Rocky
» Politician: Coordination holds the keys to resolving the “Parliament Presidency” conflict
Yesterday at 6:05 am by Rocky
» Al-Sudani: Iraq wants to carry out its peaceful activity in the field of atomic energy
Yesterday at 6:04 am by Rocky
» Including a minister and a parliamentarian... 38 arrest and recruitment orders were issued against t
Yesterday at 6:02 am by Rocky
» Integrity: Citizens’ cooperation resulted in detecting inflation and returning state funds
Yesterday at 6:01 am by Rocky
» Agriculture presents 97 projects to the Ministerial Council for the Economy
Yesterday at 5:59 am by Rocky
» Al-Sudani: We succeeded in implementing the 2023 budget, and we must continue to complete economic p
Yesterday at 5:58 am by Rocky
» Labor adopts new mechanisms to reduce the phenomenon of begging
Yesterday at 5:57 am by Rocky
» Electronically.. directing the collection of fees tomorrow in an Iraqi governorate
Yesterday at 5:56 am by Rocky
» Held in Brussels.. Iraq receives an official invitation to attend the Nuclear Energy Summit
Yesterday at 5:55 am by Rocky
» Kurdistan has been paralyzed. There has been no liquidity in hand for 50 days, and the truth has bee
Yesterday at 5:53 am by Rocky
» The dollar continues to decline against the Iraqi dinar on the stock exchange and exchange offices
Yesterday at 5:52 am by Rocky
» The Minister of Oil reveals the reasons for Shell’s withdrawal from Nebras: It will be divided into
Yesterday at 5:51 am by Rocky
» The Housing Fund advises loan applicants and launches a link for inquiries
Yesterday at 5:50 am by Rocky
» He stressed that the government’s vision is to make one class not exceed 25 students...Government me
Yesterday at 5:48 am by Rocky
» Al-Hakim and Al-Halbousi stress the importance of choosing a speaker for Parliament in accordance wi
Yesterday at 5:47 am by Rocky
» Iron and Steel Company: Iraq is on the verge of a major industrial revolution
Yesterday at 5:46 am by Rocky
» Economists: Citizens still prefer cash transactions over electronic transactions
Yesterday at 5:45 am by Rocky
» The compass of Iraq's foreign policy in a world of turbulent polarization
Yesterday at 5:43 am by Rocky
» Parliamentary Finance: The federal budget is in the corridors of the Council of Ministers, and there
Yesterday at 5:42 am by Rocky
» Integrity calls on citizens to report the inflation of funds in the sector of the Ministry of Labor
Yesterday at 5:40 am by Rocky
» Al-Sudani directs the launch of initiatives for young businessmen and investors
Yesterday at 5:38 am by Rocky
» Representative agriculture emphasizes taking supportive measures for the local product
Yesterday at 5:37 am by Rocky
» An economist calls on the government to support and stimulate the private sector
Yesterday at 5:36 am by Rocky
» Al-Ittihad: Employees and retirees in Kurdistan paid the price of political differences with Baghdad
Yesterday at 5:34 am by Rocky
» Al-Samarrai and Al-Hakim discuss the importance of achieving political and constitutional entitlemen
Yesterday at 5:32 am by Rocky
» Only 23 million dunums. Iraq exploits approximately 50% of its arable land
Yesterday at 5:30 am by Rocky
» Türkiye considers it a political issue.. Where have the negotiations reached regarding Iraq’s water
Yesterday at 5:29 am by Rocky
» Sudanese receives an invitation to attend the Nuclear Energy Summit in Brussels - Urgent
Yesterday at 5:27 am by Rocky
» Central Bank sales exceed $240 million today
Sun Mar 17, 2024 7:52 am by Rocky
» Parliamentary Finance calls on the government to expedite sending the 2024 budget to Parliament
Sun Mar 17, 2024 7:47 am by Rocky
» ‘We’re So Sick of It’: Northern Border Crisis Gets Worse
Sun Mar 17, 2024 7:35 am by Bama Diva
» A representative holds Kurdistan responsible for the faltering legislation of the oil and gas law
Sun Mar 17, 2024 6:27 am by Rocky
» Warnings of the danger of the increase in foreign labor in Iraq
Sun Mar 17, 2024 6:26 am by Rocky
» Iraq's oil exports to America decreased within a week
Sun Mar 17, 2024 6:25 am by Rocky
» Al-Sudani chairs an “important” meeting to form the Kirkuk government
Sun Mar 17, 2024 6:23 am by Rocky
» Investment confirms the adoption of a new method in new residential cities and explains its details
Sun Mar 17, 2024 6:21 am by Rocky
» For the first time in 2024.. exchange rates fall to the threshold of 149 thousand in Baghdad
Sun Mar 17, 2024 6:19 am by Rocky
» Including gold.. An increase in exports of 3 Turkish products to Iraq during 2024
Sun Mar 17, 2024 6:18 am by Rocky
» A detailed integrity report regarding the Housing Fund... called for this matter
Sun Mar 17, 2024 6:17 am by Rocky
» Resources count the number of trespassers in Baghdad.. What about restaurants?
Sun Mar 17, 2024 6:16 am by Rocky
» At a cost of approximately two billion dinars... determining the completion rates achieved in the Ma
Sun Mar 17, 2024 6:15 am by Rocky
» Parliament awaits the “Cabinet of Ministers” law
Sun Mar 17, 2024 6:14 am by Rocky
» Provincial councils return after an absence with a heavy legacy
Sun Mar 17, 2024 6:13 am by Rocky
» Iraq is the axis and meeting point of East and West
Sun Mar 17, 2024 6:11 am by Rocky
» One million beneficiaries of health insurance early next May
Sun Mar 17, 2024 6:10 am by Rocky
» Parliamentary Finance: Delaying the budget had a negative impact on the performance of the ministrie
Sun Mar 17, 2024 6:09 am by Rocky
» The chaos of urban expansion threatens the agricultural character of Diwaniyah
Sun Mar 17, 2024 6:08 am by Rocky
» A project to plant Japanese trees in Erbil
Sun Mar 17, 2024 6:07 am by Rocky
» A team to prepare the national strategy for national security in Kirkuk
Sun Mar 17, 2024 6:06 am by Rocky
» Next Tuesday...concluding a contract to expand the basic design of the city of Mosul
Sun Mar 17, 2024 6:04 am by Rocky
» A festival to reduce food prices in Mosul
Sun Mar 17, 2024 6:03 am by Rocky
» Technical committees between Baghdad and Erbil to resume oil exports through Türkiye
Sun Mar 17, 2024 6:02 am by Rocky
» A model of economic diversification
Sun Mar 17, 2024 6:01 am by Rocky
» Variation in the extent to which Iraq was affected by the decision to reduce the credit rating of {T
Sun Mar 17, 2024 6:00 am by Rocky
» Al-Sudani: Iraq has made a commitment to receive the entire security file from the Ministry of Inter
Sun Mar 17, 2024 5:58 am by Rocky
» The President of the Republic stresses the important role of Mr. Abdul Aziz Al-Hakim in the first st
Sun Mar 17, 2024 5:56 am by Rocky
» The Iraqi Center for Combating Rumors warns against social media celebrities misleading their follow
Sun Mar 17, 2024 5:54 am by Rocky
» Integrity investigates the work of the Housing Fund and indicates debts worth 56 billion dinars
Sun Mar 17, 2024 5:53 am by Rocky
» Agricultural associations in Karbala welcome the provincial council’s decision to prevent the fragme
Sun Mar 17, 2024 5:52 am by Rocky
» Free education lecturers demand that they be given job opportunities and contracts in Kirkuk
Sun Mar 17, 2024 5:51 am by Rocky
» The Digital Media Center calls for not browsing links published on a government page
Sun Mar 17, 2024 5:50 am by Rocky
» The President of the Republic confirms the strength of relations between Iraq and Italy
Sun Mar 17, 2024 5:48 am by Rocky
» A decline in Iraq's oil exports to America during the past week
Sun Mar 17, 2024 5:47 am by Rocky
» Economic researcher for / NINA /: Iraqi youth are qualified for the labor market and relying on them
Sun Mar 17, 2024 5:46 am by Rocky
» The Minister of Planning is following up on the Statistics Authority’s preparations to conduct the g
Sun Mar 17, 2024 5:45 am by Rocky
» 5 days after sending the money and the Kurdistan government has not paid the salaries...a political
Sun Mar 17, 2024 5:44 am by Rocky
» A political reading about Sudanese political concern.. Amending the election law is one of the attem
Sun Mar 17, 2024 5:42 am by Rocky
» Al-Sudani to the Baghdad government: Pay attention to the outskirts of the capital, and drainage mus
Sun Mar 17, 2024 5:41 am by Rocky
» The Iraqi dinar recovers against the dollar in local markets
Sun Mar 17, 2024 5:39 am by Rocky