China Stock Market

Green shoots in China? Excavator sales grew 15% in October

• Sales grew at a faster rate domestically

Fears for China on US tariffs are overblown

• China's exports to the US are much lower than they were in the first Trump administration.

China plans further cuts to house buying taxes to boost property sector

PBOC sets USD/ CNY central rate at 7.1927 (vs. estimate at 7.1944)

• PBOC CNY reference rate setting for the trading session ahead.

PBOC is expected to set the USD/CNY reference rate at 7.1944 – Reuters estimate

• Yuan keeps on weakening (USD keeps on rising!)

ICYMI - PBOC Governor warned on yuan slide, will 'guard against risk of overshoot'

• The beginnings of verbal intervention from the People's Bank of China

ICYMI: US ordered TSMC to halt shipments to China of chips used in AI applications

• Taiwan Semiconductor Manufacturing Co. is the world's largest maker of advanced chips

Chatter around that China is likely to implement stronger fiscal policies in 2025

• Will use the expansion of the deficit

China to counter 60% Trump tariffs with massive incentives to Europe, Asia

• China wants to peel away US allies

PBOC sets USD/ CNY reference rate for today at 7.1786 (vs. estimate at 7.1813)

• PBOC CNY reference rate setting for the trading session ahead.

PBOC is expected to set the USD/CNY reference rate at 7.1813 – Reuters estimate

• PBOC CNY reference rate setting for the trading session ahead.

ICYMI - China inflation data over the weekend showed CPI flirting with deflation

• And PPI in deepening deflation

China October CPI +0.3% y/y (expected +0.4%, prior +0.4%), deflation prospect lingers

• China's consumer inflation rate slowed in October - another indicator to sluggish consumer demand

Chinese inflation data will be published over the weekend

• CPI is trying to avoid deflation, the PPI is well and truly bogged down in it

PBOC sets USD/ CNY reference rate for today at 7.1433 (vs. estimate at 7.1452)

• PBOC CNY reference rate setting for the trading session ahead.