China’s Market News: Spokesman Addresses China-UK Relationship After Brexit
Monday, Jun 27, 2016 9:40 am -07:00
by Renee Mu, Currency Analyst
This daily digest focuses on market sentiment, new developments in China’s foreign exchange policy, changes in financial market regulations and Chinese-language economic coverage in order to keep DailyFX readers up-to-date on news typically covered only in Chinese-language sources.
- The PBOC fixed the onshore Yuan rate 599 pips weaker to the USD-move on Monday after the Brexit result.
- China calls for ‘a smooth transition’ for the UK and a more united EU.
- Chinese Premier, Li Keqiang, said that China will maintain the managed-floating exchange rate regime despite global turbulence.
To receive reports from this analyst,sign up for Renee Mu’ distribution list.
Hexun News: Chinese leading online media of financial news.
- On June 27th, the PBOC fixed the onshore Yuan 599 pips weaker against the US Dollar to 6.6375 following the Brexit decision; the lowest rate on CNH since December 2010. As of 9:40 am EDT, the onshore Yuan (USD/CNY) moved to 6.6480, while the offshore Yuan (USD/CNH) moved to 6.6789, the lowest in five and half months.
Also, the Central Bank fixed the Yuan 6,705 pips stronger against the Pound to 8.9194 on Monday, while the onshore GBP/CNY dropped to 8.7840 and the offshore GBP/CNH fell to 8.8358. The Euro continued losses as well; the PBOC fixed the Yuan by 1,250 pips stronger against the euro to 7.3184. On the other hand, the Japanese Yen has seen appreciation due to safe-haven drives, and the PBOC correspondingly fixed the onshore 100JPY/CNY 2317 pips stronger.
- China’s Premier, Li Keqiang said on Monday that despite the global uncertainty as well as market fluctuations, China will maintain the managed-floating exchange rate regime based on market supply and demand with adjustments in reference around a basket of currencies. He reiterated that China’s fundamentals have eliminated the possibility of long-term Yuan devaluation; China has the ability to maintain Yuan stability within a reasonable range.
- The spokesman of China’s Foreign Affairs commented on the Brexit decision and the potential impact to the China-UK relationship. The spokesman said that China respects the British people’s decision and hopes for a smooth transition for the UK after the Brexit result. China would like to continue to cooperate with the UK and maintain a good relationship with the UK. In terms of speculation on more countries leaving the EU, the spokesman said that China always supports the European integration process and a united EU. Also, China is confident in the outlook of the China-EU relationship.
- China’s Central Bank increased liquidity on Monday in the effort of coping with global turbulence. The Central Bank issued 270 billion yuan of 7-day reverse repos on the day with an interest rate of 2.25%, a new high over the past four months. After deducting the 170 billion yuan of reverse repos maturing on the day, the net liquidity added on June 27th was 100 billion Yuan. Also, the total amount of reverse repos to mature this week will hit 660 billion yuan. Thus, it is expected that the PBOC will continue to add liquidity towards the end of the week.
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.
- Hong Kong Stock Exchange said that they will start the interface test for the Shenzhen-Hong Kong Stock Connect (SHSC) beginning on June 27th. This is considered the last step before the system is to be launched officially. Due to this announcement, Chinese local institutions forecast that the new system could be introduced as early as July, although it may take additional one or two months for the system to be fully operational. If the quota issued to the SHSC is 300 billion yuan, the same as the quota to Shanghai-Hong Kong Stock Connect, and the utilization rate is 20-40%, it is expected that the SHSC will bring in 60 to 120 billion yuan of funds to the mainland market from Hong Kong.
Chinaforex News: a news agency administrated by SAFE
- The PBOC approved the direct Chinese Yuan/Korean Won trading in China’s interbank market on June 24th. This is seen as a major step that China and Korea made to promote bilateral trade. On June 27th, Bank of China and Worri Bank completed the first direct Yuan/Won transaction in the interbank market. The deal on the direct trading between the two currencies may have greater impact on Yuan’s exchange rate. Currently, South Korea is the fifth largest trading partner to China, but the Korean Won has not yet included in the CFETS Yuan Index, which is a trade-weighted index. Thus, improving the formation mechanism of the Yuan/Won pair could increase the odds of the Won to be included in the CFETS Yuan Index.
Written by Renee Mu, DailyFX Research Team
https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/china_news/2016/06/27/Chinas-Market-News-Spokesman-Addresses-China-UK-Relationship-After-Brexit.html?utm_source=AWeber&utm_medium=Mu&utm_campaign=em
Monday, Jun 27, 2016 9:40 am -07:00
by Renee Mu, Currency Analyst
This daily digest focuses on market sentiment, new developments in China’s foreign exchange policy, changes in financial market regulations and Chinese-language economic coverage in order to keep DailyFX readers up-to-date on news typically covered only in Chinese-language sources.
- The PBOC fixed the onshore Yuan rate 599 pips weaker to the USD-move on Monday after the Brexit result.
- China calls for ‘a smooth transition’ for the UK and a more united EU.
- Chinese Premier, Li Keqiang, said that China will maintain the managed-floating exchange rate regime despite global turbulence.
To receive reports from this analyst,sign up for Renee Mu’ distribution list.
Hexun News: Chinese leading online media of financial news.
- On June 27th, the PBOC fixed the onshore Yuan 599 pips weaker against the US Dollar to 6.6375 following the Brexit decision; the lowest rate on CNH since December 2010. As of 9:40 am EDT, the onshore Yuan (USD/CNY) moved to 6.6480, while the offshore Yuan (USD/CNH) moved to 6.6789, the lowest in five and half months.
Also, the Central Bank fixed the Yuan 6,705 pips stronger against the Pound to 8.9194 on Monday, while the onshore GBP/CNY dropped to 8.7840 and the offshore GBP/CNH fell to 8.8358. The Euro continued losses as well; the PBOC fixed the Yuan by 1,250 pips stronger against the euro to 7.3184. On the other hand, the Japanese Yen has seen appreciation due to safe-haven drives, and the PBOC correspondingly fixed the onshore 100JPY/CNY 2317 pips stronger.
- China’s Premier, Li Keqiang said on Monday that despite the global uncertainty as well as market fluctuations, China will maintain the managed-floating exchange rate regime based on market supply and demand with adjustments in reference around a basket of currencies. He reiterated that China’s fundamentals have eliminated the possibility of long-term Yuan devaluation; China has the ability to maintain Yuan stability within a reasonable range.
- The spokesman of China’s Foreign Affairs commented on the Brexit decision and the potential impact to the China-UK relationship. The spokesman said that China respects the British people’s decision and hopes for a smooth transition for the UK after the Brexit result. China would like to continue to cooperate with the UK and maintain a good relationship with the UK. In terms of speculation on more countries leaving the EU, the spokesman said that China always supports the European integration process and a united EU. Also, China is confident in the outlook of the China-EU relationship.
- China’s Central Bank increased liquidity on Monday in the effort of coping with global turbulence. The Central Bank issued 270 billion yuan of 7-day reverse repos on the day with an interest rate of 2.25%, a new high over the past four months. After deducting the 170 billion yuan of reverse repos maturing on the day, the net liquidity added on June 27th was 100 billion Yuan. Also, the total amount of reverse repos to mature this week will hit 660 billion yuan. Thus, it is expected that the PBOC will continue to add liquidity towards the end of the week.
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.
- Hong Kong Stock Exchange said that they will start the interface test for the Shenzhen-Hong Kong Stock Connect (SHSC) beginning on June 27th. This is considered the last step before the system is to be launched officially. Due to this announcement, Chinese local institutions forecast that the new system could be introduced as early as July, although it may take additional one or two months for the system to be fully operational. If the quota issued to the SHSC is 300 billion yuan, the same as the quota to Shanghai-Hong Kong Stock Connect, and the utilization rate is 20-40%, it is expected that the SHSC will bring in 60 to 120 billion yuan of funds to the mainland market from Hong Kong.
Chinaforex News: a news agency administrated by SAFE
- The PBOC approved the direct Chinese Yuan/Korean Won trading in China’s interbank market on June 24th. This is seen as a major step that China and Korea made to promote bilateral trade. On June 27th, Bank of China and Worri Bank completed the first direct Yuan/Won transaction in the interbank market. The deal on the direct trading between the two currencies may have greater impact on Yuan’s exchange rate. Currently, South Korea is the fifth largest trading partner to China, but the Korean Won has not yet included in the CFETS Yuan Index, which is a trade-weighted index. Thus, improving the formation mechanism of the Yuan/Won pair could increase the odds of the Won to be included in the CFETS Yuan Index.
Written by Renee Mu, DailyFX Research Team
https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/china_news/2016/06/27/Chinas-Market-News-Spokesman-Addresses-China-UK-Relationship-After-Brexit.html?utm_source=AWeber&utm_medium=Mu&utm_campaign=em
Today at 10:54 am by Rocky
» Al-Ardawi: The Sudanese government seeks to liberalize the Iraqi dinar and stabilize the economy
Today at 10:43 am by wciappetta
» utube 4/18/24 Iraq: Over 14 Agreements Signed Between Iraq and US BREAKING NEWS from Congress.
Today at 7:04 am by Rocky
» utube MM&C 4/16/24 IQD Update - Iraq Dinar - America - Activate - Massive Economic Deals -
Today at 7:02 am by Rocky
» utube MM&c 4/19/24 Iraqi Dinar - Private Sector - Economic Stability - Financial Reform - Al Sudan
Today at 7:01 am by Rocky
» Iraq officially signs the “Singapore” agreement to resolve trade disputes
Today at 6:59 am by Rocky
» Parliament Finance advises raising exchange rates again... What about oil revenues?
Today at 6:55 am by Rocky
» Al-Sudani: Iraq is in the process of recovery and has taken its leading position that attracts work
Today at 6:54 am by Rocky
» Al-Araji: Iraq is prepared to deal with all circumstances and seeks partnership with the United Stat
Today at 6:52 am by Rocky
» Sudanese from Michigan: The government represents all components and is keen to take care of the aff
Today at 6:50 am by Rocky
» Democratic Party: The "new generation" is the most corrupt and has dozens of cases in court
Today at 6:47 am by Rocky
» What is the benefit of Iraq establishing a petrochemical plant in Egypt?!.. An oil expert explains
Today at 6:46 am by Rocky
» A judicial delegation participates in the Permanent International Forum for Commercial Courts in Qat
Today at 6:43 am by Rocky
» Al-Sudani: The government follows a balanced policy that makes Iraq a station for security
Today at 6:42 am by Rocky
» Deduction of 160 million dinars from the salaries of MPs absent from Parliament sessions
Today at 6:40 am by Rocky
» Central Bank: Washington praised Iraq's measures to resolve 80% of the financial transfer file
Today at 5:13 am by Rocky
» Voices of Resilience: Al-Sudani’s frankness embarrasses the White House
Today at 5:12 am by Rocky
» Al-Alaq confirms the formation of a committee between Baghdad and Washington regarding sanctions on
Today at 5:10 am by Rocky
» Former MP: The Democrat will not hand over power after the regional elections
Today at 5:07 am by Rocky
» Document/allocation of 20% of the lands of Al-Jawahiri Complex to employees of the Ministry of Defen
Today at 5:06 am by Rocky
» Al-Hakim: Al-Sudani’s visit to Washington was a protocol and missed the two most important files
Today at 5:05 am by Rocky
» Parliamentary Security: The National Security Service law will be voted on by Parliament soon
Today at 5:04 am by Rocky
» Reconstruction and Housing: Zarbatieh residential project completed by 82%
Today at 5:01 am by Rocky
» Al-Sudani reveals an intention to establish Al-Faw refinery with a capacity of 300 thousand barrels
Today at 5:00 am by Rocky
» Government readiness to move the Doura refinery to an alternative location.. What are the conditions
Today at 4:59 am by Rocky
» Al-Sudani’s visit to Washington.. Implications and results
Today at 4:56 am by Rocky
» Association of Iraqi Private Banks: The suspension of some electronic payment services yesterday was
Today at 4:55 am by Rocky
» Parliamentary memorandum.. Two solutions were before the Federal Court instead of removing the compo
Today at 4:53 am by Rocky
» Blue fuel... Iraqi steps towards inexhaustible wealth for a century
Today at 4:51 am by Rocky
» For fear of being "upset"... MPs "evade" signing to host Al-Sudani in Parliament
Today at 4:50 am by Rocky
» Al-Sudani’s statement to convert 40% of Iraq’s exports into derivatives.. What does it have to do wi
Today at 4:48 am by Rocky
» An Iraqi-American partnership to benefit from oil field gas
Today at 4:46 am by Rocky
» The Minister of Commerce announces the distribution of the first payments of farmers’ dues for the 2
Today at 4:45 am by Rocky
» Sudanese to members of the Iraqi community in the American city of Houston: Iraq has regained its he
Today at 4:43 am by Rocky
» Romanski announces loans worth $50 million to support the Iraqi private sector
Today at 4:42 am by Rocky
» Prime Minister: We plan to invest production capacities for export
Today at 4:41 am by Rocky
» “Something happened” in Iran and no one is talking about Iraq and Syria. This is what we have so far
Today at 4:38 am by Rocky
» Al-Sudani asks the American Baker Institute for assistance in preparing studies related to the oil m
Today at 4:36 am by Rocky
» The Interior Ministry denies the occurrence of explosions inside Iraqi territory and diagnoses “the
Today at 4:35 am by Rocky
» Tensions between Najaf and Baghdad over the airport... the rule of law over “military force” and the
Today at 4:34 am by Rocky
» Al-Sudani from Washington: We agreed with Abu Dhabi on joint management of Al-Faw Port
Today at 4:33 am by Rocky
» "Al-Party" talks about the region's elections and reveals the reason for refusing to pay salaries di
Today at 4:31 am by Rocky
» Russia's oil is taking more of the Middle East's shares in the Indian market.. How much has Iraq los
Today at 4:29 am by Rocky
» Early next month.. Traffic confirms that the electronic payment system is working only
Today at 4:27 am by Rocky
» The Service Council accuses state departments of refraining from disbursing bonuses because of the m
Today at 4:25 am by Rocky
» Electricity: The Baghdad street lighting campaign will be completed before the middle of this year
Today at 4:24 am by Rocky
» Oil poses two conditions for moving the Doura refinery to an alternative location
Today at 4:23 am by Rocky
» The Foreign Minister reveals the truth about his resignation and the reason for his departure to Erb
Today at 4:22 am by Rocky
» Progress: Al-Halbousi’s acquittal has become conclusive, and his return to the presidency of Parliam
Today at 4:20 am by Rocky
» Disagreements strike Al-Maliki's coalition over choosing the governor of Diyala
Today at 4:19 am by Rocky
» The Union accuses Türkiye of exploiting the political situation for a ground incursion into Iraq
Today at 4:18 am by Rocky
» The Democratic Party: Barzani is eagerly awaiting the results of Al-Sudani’s visit to Washington
Today at 4:17 am by Rocky
» Frame: Al-Halbousi in the news and his return has become a pipe dream
Today at 4:16 am by Rocky
» A parliamentary request to capitalize on Erdogan’s visit to Baghdad to end the water crisis
Today at 4:15 am by Rocky
» Al-Sudani urges the US corporation Honeywell to help finish the Basra refinery
Yesterday at 2:48 pm by Rocky
» Al-Sudani Meets with Representatives of Western Media Outlets in Washington
Yesterday at 2:46 pm by Rocky
» Chairman of the Investment Authority signs the United Nations Convention on International Mediation
Yesterday at 2:44 pm by Rocky
» PM: We will sign a contract to establish the Al-Faw refinery with a Chinese company
Yesterday at 2:42 pm by Rocky
» PM arrives in Houston as part of his visit to USA
Yesterday at 2:41 pm by Rocky
» Militia Man & Crew 4/18/24 Bush signed it and all presidents implemented it. Iraq’s funds have been
Yesterday at 1:46 pm by Rocky
» Iraq is close to launching the electronic signature
Yesterday at 7:12 am by Rocky
» The Basra government discusses with an international oil company the implementation of social benefi
Yesterday at 7:11 am by Rocky
» The Prime Minister confirms to an American company: Gas projects in Iraq are a priority for the gove
Yesterday at 7:10 am by Rocky
» The Minister of Planning discusses with the World Bank mechanisms for scheduling external loans
Yesterday at 7:09 am by Rocky
» Oil sets the twenty-seventh of this month as the date for opening contracts for the fifth complement
Yesterday at 7:08 am by Rocky
» “Electronic begging”...professionalism and fabrication of stories” generates millions of dinars dail
Yesterday at 7:05 am by Rocky
» Al-Sudani calls on the American company Hanwell to contribute to the completion of the Basra refiner
Yesterday at 7:03 am by Rocky
» An American company expresses its willingness to establish LED lighting production lines in Iraq
Yesterday at 7:02 am by Rocky
» Including Iraq.. Iran announces the possibility of exporting 300 megawatts of “renewable electricity
Yesterday at 7:01 am by Rocky
» Political forces present two options to find an alternative to Al-Halbousi
Yesterday at 6:58 am by Rocky
» Parliament is awaiting the arrival of the budget schedules and the government is studying higher spe
Yesterday at 6:56 am by Rocky
» The International Monetary Fund adjusts its expectations for the development of the world’s economie
Yesterday at 6:54 am by Rocky
» A representative talks about the difficulty of finalizing the file of “electing the Speaker of Parli
Yesterday at 6:50 am by Rocky
» Work on preparing a law for diplomatic passports
Yesterday at 6:49 am by Rocky
» A female representative accuses the Ministry of Immigration of corruption
Yesterday at 6:47 am by Rocky
» Minister: Solving the Kurdistan salaries problem is the beginning of addressing other disputes betwe
Yesterday at 6:45 am by Rocky
» About 270 million dollars were sold by the Central Bank of Iraq in the currency auction
Yesterday at 6:42 am by Rocky
» The volume of trade exchange between Jordan and Iraq will exceed 800 million dinars in 2023
Yesterday at 6:41 am by Rocky
» Iraq signs memorandums of understanding with American companies in the fields of electricity, oil an
Yesterday at 5:31 am by Rocky
» The American company that manufactures the F16 expresses its readiness to implement the terms of con
Yesterday at 5:30 am by Rocky
» The volume of expected Qatari investments for the Iraq Fund for Development exceeds $3.5 billion
Yesterday at 5:29 am by Rocky
» Decrease in dollar prices in Baghdad and Erbil
Yesterday at 5:27 am by Rocky
» The President of the Region brings together the Kurdish parties to resolve the election file
Yesterday at 5:26 am by Rocky
» Al-Sudani receives in Washington the Chairman of JPMorgan
Yesterday at 5:25 am by Rocky
» Transport is starting to transform its ports into smart ones
Yesterday at 5:23 am by Rocky
» Sudanese reveals the volume of exchange with America
Yesterday at 5:22 am by Rocky
» "Al-Eqtisad News" publishes the memorandums of understanding signed between the Iraqi delegation and
Yesterday at 5:21 am by Rocky
» Al-Sudani urges an American company to contribute to establishing a chemical materials factory
Yesterday at 5:20 am by Rocky
» Iraq stresses the importance of Lockheed Martin's commitment to opening military aircraft maintenanc
Yesterday at 5:19 am by Rocky
» Iraq is on the verge of a “water disaster” by 2035
Yesterday at 5:18 am by Rocky
» Great satisfaction and optimism with the results of Sudanese’s visit to Washington
Yesterday at 5:16 am by Rocky
» Transport is beginning to adopt a plan to transform its ports into smart ones
Yesterday at 5:15 am by Rocky
» Completed 8,000 loan transactions at the Housing Bank
Yesterday at 5:14 am by Rocky
» Prime Minister: We plan to invest production capacities for export
Yesterday at 5:12 am by Rocky
» Transformation and partnership...a new horizon in Iraqi-American relations
Yesterday at 5:10 am by Rocky
» What is new in the economic dimension of the Washington visit?
Yesterday at 5:09 am by Rocky
» Two letters to the future
Yesterday at 5:08 am by Rocky
» National interests first
Yesterday at 5:06 am by Rocky
» Iraqi-American rapprochement...a national necessity
Yesterday at 5:05 am by Rocky