China markets team leader, senior correspondent, Shanghai, China
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Oct 31, 2014

C.bank’s silent money management change shows shadow banking fears

SHANGHAI, Oct 31 (Reuters) – China’s central bank has put
investors on edge in October, setting aside transparency in
favour of covert monetary policy operations as regulators
balance the need to revive productive investment against the
risk of reanimating high-risk credit growth.

The strategy has two prongs. On the one hand, the People’s
Bank of China (PBOC) has gone passive in the open money market,
neither injecting nor draining cash on a net basis for three
straight weeks, the longest such stretch on record.

Oct 28, 2014

In China, high demand for robots but too many robot manufacturers

SHANGHAI, Oct 29 (Reuters) – China wants domestic companies
to buy more locally made robots to lift productivity, but
industry insiders have warned its policies are over-stimulating
the market and that robot manufacturers were “coming up like
mushrooms.”

Government officials, worried that productivity growth may
have turned negative since 2009, see the promotion of automation
as a policy that will increase efficiency. Chinese
manufacturers, struggling with increasing costs of labour, also
favour more use of robots where possible.

Oct 28, 2014

China aims for more clarity on local government debt with new rules

SHANGHAI (Reuters) – China issued new rules on handling outstanding local government debt on Tuesday but left out some controversial provisions that were contained in an earlier draft of the regulations.

Beijing wants to accurately measure the amount of debt outstanding at the local government level by the end of the year, the Ministry of Finance said in new rules published on its website, www.mof.gov.cn.

Oct 28, 2014

China aims for more clarity on local govt debt with new rules

SHANGHAI, Oct 28 (Reuters) – China issued new rules on
handling outstanding local government debt on Tuesday but left
out some controversial provisions that were contained in an
earlier draft of the regulations.

Beijing wants to accurately measure the amount of debt
outstanding at the local government level by the end of the
year, the Ministry of Finance said in new rules published on its
website, www.mof.gov.cn.

Oct 27, 2014

Delay of Shanghai-HK connect scheme casts doubt on inclusion of “A” shares in MSCI EM index – exec

SHANGHAI, Oct 27 (Reuters) – Global equity index provider
MSCI Inc said it is unlikely to add shares of mainland
China listed companies to its emerging markets index
if there was a considerable delay in the launch of a pilot
scheme linking the Shanghai and Hong Kong stock markets.

“In the end we have a timetable in this process,” MSCI Hong
Kong’s Managing Director Chin Ping Chia said in an interview
with Reuters on Monday. “If nothing happens by the end of this
year, stretching to June of next year, you can expect that we
are not going to make any change.”

Oct 27, 2014

Delayed launch of Shanghai-HK stock connect could push back “A” share inclusion in MSCI EM index – MSCI exec

SHANGHAI, Oct 27 (Reuters) – Global equity index provider
MSCI Inc said it would be unlikely to add shares of
mainland China listed companies to its emerging markets index
if there was a considerable delay in the launch of a
pilot scheme linking the Shanghai and Hong Kong stock markets.

“In the end we have a timetable in this process,” MSCI Hong
Kong’s Managing Director Chin Ping Chia said in an interview
with Reuters on Monday. “If nothing happens by the end of this
year, stretching to June of next year, you can expect that we
are not going to make any change.”

Oct 23, 2014

China local debt fix hangs on Beijing’s wishful thinking

SHANGHAI, Oct 24 (Reuters) – China is asserting control over
once-chaotic local government financing by banning the use of
opaque funding vehicles, but filling the gap with a huge
expansion of the fledgling municipal bond market will raise a
whole new set of problems.

Chastened by promiscuous local investment in response to the
2008 global financial crisis, Beijing wants to restore
discipline as part of its wider economic reforms, but the muni
bond market, bedevilled by price distortions and inadequate
disclosure standards, is no quick fix.

Oct 20, 2014

Chinese money rates unmoved by fresh cash injection

SHANGHAI, Oct 20 (Reuters) – Chinese money rates shrugged
off news that the central bank is set to inject $33 billion
worth of fresh credit to select banks through its standard
lending facility (SLF), traders said.

The move comes as markets continue to closely monitor the
central bank for signs that it is easing policy to prop up
stagnating investment in the real economy.

Oct 17, 2014

Chinese investors bet on first rate cut in two years as growth slows

SHANGHAI (Reuters) – A dramatic fall in Chinese interest rate swaps (IRS) this week suggests markets are betting a run of weak economic data will force the central bank to cut its benchmark deposit rate for the first time in over 2 years to support growth.

Though few expect such a policy response is imminent, a growing number of analysts believe the Peoples’ Bank of China (PBOC) may give up its long-held resistance to cutting official interest rates – a stance traders say is driven by fear of stoking more sloppy investment, speculation and rates arbitrage.

Oct 15, 2014

Chinese stocks post mild rise after inflation data, lifted by pharma, airlines

SHANGHAI, Oct 15 (Reuters) – Chinese stock markets rose on
Tuesday, with major indexes lifted by airline stocks and
pharmaceuticals, but analyst said sentiment remained cautious
given signs of continued pressure on producer pricing power and
weakness in overseas markets.

The CSI300 index of the largest Shanghai and
Shenzhen A-share listings was up 0.6 percent, while the Shanghai
Composite Index was up 0.5 percent at 2,369.8 points.

    • About Pete

      "Pete Sweeney is Senior Markets Correspondent at Reuters, focused on bond, forex, interbank and equities markets. Previously editor of China Economic Review, a Hong Kong-based monthly magazine focused on providing news and analysis on the mainland economy. Sweeney came to China as a Fulbright scholar in 2008, and conducted research on Chinese business policy in Hangzhou, Harbin and Chengdu. He has also lived and worked in Belgium, Ecuador and the U.S. He speaks Chinese, at the expense of his Spanish."
      Joined Reuters:
      March 2012
      Languages:
      Mandarin, Spanish
      Awards:
      Fulbright Scholar
      Foreign Languages and Area Studies Scholar
      Boeing Merit Award
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