China Stock Market

China's sovereign wealth fund says it will help with market stabilization in 2024

• Time to prop up China stocks.

Chinese Communist Party authorities have told some investors not to sell stocks

• Institutions told not to bail out of stocks due to the rout

PBOC sets USD/ CNY central rate at 7.1134 (vs. estimate at 7.1783)

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

PBOC is expected to set the USD/CNY reference rate at 7.1783 – Reuters estimate

• PBOC CNY reference rate setting for the trading session ahead will be much lower, around 600 points or so.

People's Bank of China left its MLF rate unchanged - recap

• Yuan has chopped around and is not a lot net changed

People's Bank of China set MLF rate at 2.5% (prior 2.5%)

• Injects 995bn yuan via 1 year MLF vs. the 779 bn yuan in MLF maturing today

PBOC sets USD/ CNY reference rate for today at 7.1084 (vs. estimate at 7.1684)

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

Taiwan's Presidential election: Pro-sovereignty DPP's William Lai wins

• Lai's Democratic Progressive Party did lose its parliamentary majority though

PBOC is expected to set the USD/CNY reference rate at 7.1684 – Reuters estimate

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

People's Bank of China interest rate cut expected today

• The PBOC will set the Medium-term Lending Facility (MLF) rate on Monday, 15 January.

Weekend: Ex-PBoC official says China’s property downturn may continue for two more years

• The property sector has been a drag on the economy for the past three years

China December trade data shows exports and imports both gained y/y

China 2023 CNY denominated exports +0.6% y/y & imports -0.3% y/y

• China's Customs says China's 2023 exports and imports of goods are better than expected

China December CPI -0.3% y/y (expected -0.4%)

• Inflation data from China for December 2023 - deflation continues

PBOC sets USD/ CNY reference rate for today at 7.1050 (vs. estimate at 7.1592)

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