Shanghai Bureau Chief
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Jan 13, 2011

China guides yuan to new high ahead of U.S. summit

SHANGHAI (Reuters) – China’s central bank guided the yuan past 6.60 per dollar on Thursday, setting the currency’s daily mid-point above that level for the first time, ahead of a visit to the United States by Chinese President Hu Jintao next week.

The yuan’s rise in the last couple of days, on the back of successive record highs in its daily mid-point, reflects a long-held pattern of Beijing allowing appreciation of the currency ahead of big political meetings, where it often faces calls for the yuan to strengthen further.

Dec 31, 2010

Yuan ends 2010 with a flourish, up 3.6 percent on year

SHANGHAI (Reuters) – China’s yuan ended 2010 on a strong note, pushing past 6.59 per dollar on Friday to close the year up 3.6 percent and fanning hopes that it will see even more gains next year.

The currency closed at 6.5897 per dollar, capping nine trading days that saw it rise 1.3 percent from a recent low and giving a decisive close to the year after the currency zig-zagged from mid-October to mid-December.

Dec 31, 2010

Yuan breaches 6.60 vs dollar, more strength seen

SHANGHAI (Reuters) – The yuan breached 6.60 per dollar resistance on the final day of 2010, marking a rise of 3.6 percent so far this year and setting the stage for further increases in 2011.

The People’s Bank of China (PBOC) set the yuan’s mid-point at a record high for the second straight day, although it also sent a signal that coming rises in the yuan would not be drastic, as the fixing was just two pips higher than Thursday’s.

Dec 31, 2010

China funds cut equities weighting heading into 2011

SHANGHAI (Reuters) – Mutual funds in China cut their recommended equity weightings for a second straight month in December, reflecting continued worries about policy tightening, the latest monthly Reuters poll of fund managers showed.

Fund managers are worried that stocks might continue to be weighed by monetary tightening into the new year, as the government will likely raise interest rates further and ramp up its campaign against inflation.

Dec 30, 2010

Yuan hits fresh high vs dollar, more upside seen

Dec 30 (Reuters) – * Yuan hits intraday high of
6.6000 after record high fixing

* Daily gain is biggest in nearly two months

* Up 3.4 percent since depegging

* Dealers expect yuan may rise around 2 percent in Q1 2011

* Thin holiday trade makes NDFs move in a small range

By Chen Yixin and Jason Subler

SHANGHAI, Dec 30 (Reuters) – The yuan hit a record high
against the dollar on Thursday after the People’s
Bank of China set a higher mid-point, sparking expectations of
more appreciation in the first quarter of next year.

Dec 30, 2010

Yuan hits fresh high vs dollar on PBOC guidance

SHANGHAI, Dec 30 (Reuters) – The yuan hit a record high
against the dollar on Thursday after the People’s
Bank of China set a higher mid-point, sparking expectation of
more yuan appreciation in the first quarter of 2011.

Spot yuan hit an intraday high of 6.6106
by midday, the highest level since its revaluation and
forex reforms in July 2005. That was up 0.2 percent from
Wednesday’s close.
The PBOC set the day’s mid-point
against the dollar, from which the yuan can rise or fall 0.5
percent in a given day, at a record high of 6.6229 ,
slightly strong er than Wednesday’s
6.6247.
A number of dealers said they expected the yuan
might rise 1-2 percent in the first quarter of 2011 as China
needs to fight imported inflation and will face heightened
political pressure for it to strengthen.

Dec 27, 2010

Chinese stocks fall as rate rise reality sets in

SHANGHAI, Dec 27 (Reuters) – Chinese investors went from
relief to apprehension of more tightening ahead on Monday
after the central bank’s surprise Christmas Day interest rate
rise, pushing the stock market down 1.9 percent after earlier
gains.

The 25-basis-point increase in benchmark lending and
deposit rates by the People’s Bank of China (PBOC) came
somewhat earlier than many investors had expected, suggesting
authorities may be front-loading their tightening measures and
triggering speculation that yuan strength may be employed to
fight price pressures.

Dec 27, 2010

China Money: Market stress to linger on surprise rate hike

SHANGHAI, Dec 27 (Reuters) – China’s surprise interest
rate rise kept the money market nervous on Monday, signalling
its recent unprecedented volatility may continue and raising
the possibility that a cash shortfall may eventually hit
corporates’ short-term funding needs.

The money market was already on edge before the central
bank raised benchmark lending and deposit rates by 25 basis
points on Saturday, as short-term borrowing rates had
repeatedly hit more than two-year highs over the past several
weeks, crimping demand from some players for cash.

Dec 27, 2010

Chinese investors take rate rise in stride

SHANGHAI (Reuters) – Chinese investors took the central bank’s surprise interest rate rise in stride on Monday, relieved the long-awaited move was finally out of the way and buying financial shares on the potential for higher earnings.

The 25-basis-point increase in benchmark lending and deposit rates by the People’s Bank of China (PBOC) on Christmas Day came somewhat earlier than many investors had expected, suggesting the authorities may be front-loading its tightening measures.

Dec 27, 2010

Chinese stocks, yuan take rate rise in stride

SHANGHAI, Dec 27 (Reuters) – Chinese investors took the
central bank’s surprise interest rate rise in stride on
Monday, relieved the long-awaited move was finally out of the
way and buying financial shares on the potential for higher
earnings.

The 25-basis-point increase in benchmark lending and
deposit rates by the People’s Bank of China (PBOC) on
Christmas Day came somewhat earlier than many investors had
expected, suggesting the authorities may be front-loading its
tightening measures.

    • About Jason

      "Jason leads Reuters' coverage of China's financial markets from Shanghai. Prior to moving there at the start of 2010, he reported on the Chinese economy and policy from Beijing, where he lived for a decade."
      Joined Reuters:
      2005
      Languages:
      Mandarin, German
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