China markets team leader, senior correspondent, Shanghai, China
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Mar 2, 2015

China’s funding costs fall less than expected after central bank rate cut

SHANGHAI, March 2 (Reuters) – Chinese money and debt rates
fell slightly on Monday after the central bank cut interest
rates, but the decline was milder than expected, highlighting
the difficulty Beijing has getting its adjustments to benchmarks
reflected in real lending rates.

The weighted average of the benchmark seven-day bond
repurchase agreement was quoted at 4.7 percent by
midday, down only 12 basis points from the previous close. The
one-day rate dropped 9 basis points to 3.42 percent.

Mar 2, 2015

China, HK stocks lukewarm after interest rate cut; banks fall on profit concerns

SHANGHAI, March 2 (Reuters) – China stocks posted modest
gains on Monday after the central bank cut interest rates over
the weekend, with some investors expressing disappointment that
it didn’t cut rates more deeply.

The People’s Bank of China cut interest rates for the second
time in just over three months late on Saturday as the
government steps up efforts to support the slowing economy amid
the mounting threat of deflation.

Mar 1, 2015

China central bank steps up easing tempo as factory activity shrinks

SHANGHAI (Reuters) – Weakness in China’s vast manufacturing sector, aggravated by high real borrowing costs and weak demand, appears to have driven the central bank to accelerate the pace of monetary easing to ward off deflation in the world’s second-largest economy.

Cuts to benchmark lending and deposit rates, announced by the People’s Bank of China (PBOC) on Saturday evening, pre-empted official data released on Sunday that showed a second consecutive month of shrinking manufacturing activity for February.

Mar 1, 2015

China c.bank steps up easing tempo as factory activity shrinks

SHANGHAI, March 1 (Reuters) – Weakness in China’s vast
manufacturing sector, aggravated by high real borrowing costs
and weak demand, appears to have driven the central bank to
accelerate the pace of monetary easing to ward off deflation in
the world’s second-largest economy.

Cuts to benchmark lending and deposit rates, announced by
the People’s Bank of China (PBOC) on Saturday evening,
pre-empted official data released on Sunday that showed a second
consecutive month of shrinking manufacturing activity for
February.

Mar 1, 2015

China PMI shows factory activity shrank again in February

SHANGHAI (Reuters) – Hours after China’s central bank cut interest rates to battle slowing growth and rising deflationary risk, an official survey showed on Sunday that activity in China’s factory sector contracted for a second straight month in February.

The official Purchasing Managers’ Index (PMI) inched up to 49.9 in February from January’s 49.8, a whisker below the 50-point level separating growth from contraction on a monthly basis, but nevertheless above more pessimistic analyst forecasts for a 49.7 reading.

Feb 25, 2015

China stocks soft amid murky economic outlook, small caps in play

SHANGHAI, Feb 25 (Reuters) – China share markets held a soft
tone on Wednesday as trading resumed after a week-long holiday,
with some investors taking profits after an extended pre-holiday
rally.

Analysts said that investors had shrugged off the positive
surprise from industrial activity data on Wednesday morning and
sold on disappointment that the central bank had not further
eased interest rates over the holiday break.

Feb 12, 2015

China’s lending push bypasses cash-starved farm sector

SHANGHAI, Feb 13 (Reuters) – As China pulls out the stops to
get more lending into its economy to bolster flagging growth,
farming, a sector that employs almost a third of its 1.4 billion
people, remains in desperate need of funding.

Policymakers have cut interest rates, increased lending
targets and freed up banks’ reserves to lend more, helping to
sustain a rally in Chinese shares and a property bubble, but it
is not getting through to agriculture, which produces around 9
percent of China’s GDP, though with pitiful productivity.

Feb 9, 2015

China launches first equity options, investors bet stock prices to rise

SHANGHAI (Reuters) – China launched its first stock options on the Shanghai Stock Exchange on Monday, offering investors a new hedging tool for trading index heavyweights, which regulators long have hoped to boost.

The options are based on the exchange-trade fund (ETF) that tracks the SSE50 index, composed of the 50 most heavily weighted stocks on the bourse.

Feb 8, 2015

China’s imports slump, capping dismal January trade performance

SHANGHAI (Reuters) – China’s trade performance slumped in January, with exports falling 3.3 percent from year-ago levels while imports tumbled 19.9 percent, far worse than analysts had expected and highlighting deepening weakness in the Chinese economy.

Largely as a result of the sharply lower imports – particularly of coal, oil and commodities – China posted a record monthly trade surplus of $60 billion.

Feb 6, 2015

China’s reserve ratio cut more help to banks than borrowers

SHANGHAI (Reuters) – Chinese bankers welcomed Beijing’s decision to cut the level of reserves they must hold, hoping they can put the freed-up cash to profitable use, but struggling Chinese companies hoping it will mean more and cheaper loans are likely to be disappointed.

After a slew of gloomy economic data, the People’s Bank of China (PBOC) cut banks’ reserve requirement ratios (RRR) by 50 basis points on Wednesday, freeing up an estimated 600 billion yuan ($96 billion) into the money supply.

    • 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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