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.
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.
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.
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.
SHANGHAI, Oct 14 (Reuters) – Chinese stock indexes recovered
slightly by midday on Tuesday, with mainland investors heartened
by easier money conditions while Hong Kong gained after a
crackdown on protestors.
By midday, the Hang Seng Index was up 0.65 percent at
23,294 points. The China Enterprises Index of the top
Chinese listings in Hong Kong gained 0.8 percent. Both indexes
have taken heavy hits since the beginning of pro-democracy
protests in the city that began in early October.
SHANGHAI, Oct 14 (Reuters) – China’s money rates fell
slightly on Tuesday after the central bank lowered the yield at
its bond repurchase agreement auctions the second time since
July, as part of an effort to lower real funding costs in
support of a slowing economy, traders said.
The People’s Bank of China (PBOC) on Tuesday lowered the
yield of the 14-day bond repurchase agreements during open
market operations to 3.4 percent, down from 3.5 percent in its
previous operations last Thursday.
HONG KONG, Sept 22 (Reuters) – Short-sellers who profit from
stock price declines have resumed targeting Chinese companies
after a three-year lull, but many of the researchers who
instigate the strategy are now cloaked in anonymity, shielding
themselves from angry companies and Beijing’s
Three reports published this month separately accused three
Chinese companies – Tianhe Chemicals, 21Vianet
and Shenguan Holdings – of business or
accounting fraud. All three companies said the allegations were
baseless but their shares were hit by a wave of short-selling by
clients of the research firms and then by other investors as the
reports were made public.
SHANGHAI, Sept 12 (Reuters) – The recent rally in Chinese
stocks has many investors hoping it is the start of a bull
market in the region’s worst performing market, but the
structure of fund flows suggests it is bargain hunting rather
than a lasting vote of confidence.
Money has flowed into mid-cap non-ferrous and defence
stocks, which were previously among the most discounted, yet
little has gone into banking and financial stocks, which are the
ones that will bear the brunt of any economic slowdown if it
SHANGHAI/HONG KONG (Reuters) – Tianhe Chemicals (1619.HK: Quote, Profile, Research, Stock Buzz) has denied allegations that it made false statements in its initial public offering prospectus and said key investor Morgan Stanley Private Equity Asia (MSPEA) has given it full support.
A report by Anonymous Analytics, which describes itself as a “faction” of the hacker group Anonymous, accused the Chinese chemicals company of conducting “one of the largest stock market frauds ever conceived,” based on analyses of different company reports, tax statements, market analysis and visits to customers mentioned in Tianhe filings.
BEIJING, Sept 11 (Reuters) – China’s consumer inflation
cooled more than expected in August, further evidence that the
economy is losing momentum, but economists are divided over
whether Beijing will use the extra room to announce fresh
The consumer price index (CPI) rose 2.0 percent in August
from a year earlier, the National Bureau of Statistics said on
Thursday, missing market expectations for 2.2 percent and down
from 2.3 percent in July.