Shanghai Bureau Chief
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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.

Dec 26, 2010

Q+A: How will markets respond to China’s rate rise?

SHANGHAI/HONG KONG (Reuters) – China’s central bank raised interest rates on Christmas Day, moving sooner than many analysts and market participants had expected to ramp up its campaign to combat inflation.

Many observers had thought the People’s Bank of China (PBOC) might hold off in raising rates for a second time since mid-October until at least the new year, especially after Chinese money market rates spiked last week, meaning many investors will have been taken off guard by the latest step.

Dec 23, 2010

China money market rates jump, may delay tightening

SHANGHAI, Dec 23 (Reuters) – China’s benchmark money market
rate jumped 149 basis points to a fresh more than two-year
high on Thursday, as traders cited an acute shortage of funds
after a
slew of official tightening steps.

The weighted average seven-day government bond repurchase
rate rose to 5.6789 percent at 0400 GMT from
4.1868 percent at the close on Wednesday, after having
repeatedly hit more than two-year highs since late November.

Dec 15, 2010

Time to fear China inflation? Not yet, say multinationals

BEIJING/SHANGHAI (Reuters) – China’s latest inflation figures may have sent a ripple of fear through global markets, but at many of the multinationals betting on the country’s fast-growing consumer market, executives remain surprisingly unruffled.

The reasons vary but boil down to an essential point — costs in China might be rising but economic growth, and thus sales, should more than make up for it.

Dec 15, 2010

Time to fear China inflation? Not yet, say

BEIJING/SHANGHAI (Reuters) – China’s latest inflation figures may have sent a ripple of fear through global markets, but at many of the multinationals betting on the country’s fast-growing consumer market, executives remain surprisingly unruffled.

The reasons vary but boil down to an essential point — costs in China might be rising but economic growth, and thus sales, should more than make up for it.

Dec 13, 2010

BNP Paribas China fund JV to launch HK funds soon

SHANGHAI (Reuters), Dec 13 – HFT Investment Management Co, a Chinese fund venture of BNP Paribas (BNPP.PA: Quote, Profile, Research, Stock Buzz), plans to launch its first offshore funds through its new Hong Kong subsidiary within three months to accelerate international expansion, its chief executive said on Monday.

HFT Investment also hopes to launch its second overseas investment fund for mainland Chinese investors under the country’s Qualified Domestic Institutional Investor (QDII) scheme within a month, CEO Tian Rencan said at the Reuters China Investment Summit.

    • 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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