China Stock Market

PBOC sets USD/ CNY central rate at 7.1724 (vs. estimate at 7.2474)

Brent crude oil and "green shoots of hope" in China

• China to fuel a more positive outlook on oil prices

China Oct. Industrial Production +4.6% y/y (exp 4.4%) & Retail sales +7.6% y/y (exp 7.0%)

• China 'activity data' for October 2023

PBOC sets USD/ CNY mid-point today at 7.1752 (vs. estimate at 7.2564)

• The plunge in the US dollar is a welcome windfall for the PBoC

PBOC is expected to set the USD/CNY reference rate at 7.2564 – Reuters estimate

• The PBOC have help from the post-CPI plunge for the US dollar today

China FX strategy: JPM bullish growth, but foreign inflows remain unrestored

• JP Morgan says focus on Fed rates, PBOC's FX policy for the CNY. Expect a 25bp RRR cut.

China's Medium-term Lending Facility rate will be set today

• The monthly PBOC Medium-term Lending Facility rate influences the upcoming Loan Prime Rate

PBOC sets USD/ CNY central rate at 7.1768 (vs. estimate at 7.2885)

• People's Bank of China once again sits heavily on USD/CNY

PBOC is expected to set the USD/CNY reference rate at 7.2885 – Reuters estimate

• Expect the reference rate to set around 7.17

China's October financing data: Mixed results (ICYMI)

• China's financing data for October reveals a mixed performance for loans & total financing

Goldman Sachs downgrades Hong Kong stocks, expects India to outperform

• Goldman Sachs upgrades shares in India - expected to have strong growth prospects.

PBOC sets USD/ CNY reference rate for today at 7. 1769 (vs. estimate at 7.2889)

• USD/CNY allowed to fluctuate within 2% of the rate, CNH (offshore) has no such restriction

PBOC is expected to set the USD/CNY reference rate at 7.2889 – Reuters estimate

• Discover how the PBOC allows the daily midpoint of the yuan to fluctuate within a trading band.

Country Garden aims to have offshore debt restructuring plan by year end

• China's Country Garden plans to finalize a restructuring plan for its offshore debt by the end of 2021. The property developer aims to inform key bondholders of cash flow projections, laying the groundwork for negotiations with offshore bondholders in early 2022.

China's banks in urgent need of short-term funds are paying high overnight rates

• Cash crunch fears in China with short-term funds as high as a 50% overnight rate.