China markets team leader, senior correspondent, Shanghai, China
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Jan 29, 2015

Chinese banks back risky stock margin finance in face of regulator crackdown

SHANGHAI, Jan 29 (Reuters) – Chinese banks seeking to profit
from the country’s stock market frenzy have bought into the
recent surge in margin finance, foiling regulatory efforts to
reduce debt-fueled speculation and amplifying the risk if the
rally turns into a rout.

Although regulators are cracking down on credit flows into
the stock market, financial industry insiders say they still
have not closed loopholes that allow banks to channel credit
into the stock market via brokerages.

Jan 22, 2015

As China pushes cash through front door, capital escapes out the back

SHANGHAI (Reuters) – The People’s Bank of China is desperate to stimulate a slowing economy, but flagging enthusiasm for Chinese assets is blunting its traditional monetary policy tools and forcing the central bank to adopt different tactics.

Sustained capital outflows have reduced the effectiveness of the PBOC’s open market operations to such an extent that the central bank all but abandoned them in early December, market participants say, following its surprise cut in guidance lending rates the previous month.

Jan 22, 2015

Benchmark China money rate climbs as seasonal demand offsets PBOC injections

SHANGHAI, Jan 22 (Reuters) – China’s main money market rate
rose above a psychological resistance level on Thursday as
short-term cash calls, boosted by demand ahead of a long
holiday, offset injections by the central bank, traders said.

The weighted average of the benchmark seven-day repo rate
climbed 14 basis points to 4.11 percent in late
morning trade, breaching the 4 percent barrier for the first
time since early January.

Jan 20, 2015

China posts weakest annual growth in 24 years, more stimulus expected

BEIJING/SHANGHAI (Reuters) – China’s economic growth held steady at 7.3 percent in the fourth quarter from a year earlier, slightly better than expected but still hovering at its weakest since the global financial crisis, keeping pressure on policymakers to head off a sharper slowdown.

The world’s second-largest economy grew 7.4 percent in the whole of 2014, the National Bureau of Statistics said on Tuesday, undershooting the government’s 7.5 percent target and the weakest expansion in 24 years.

Jan 19, 2015

Investors to get taste of new China via Shenzhen trading link

SHANGHAI/HONGKONG, Jan 20 (Reuters) – Foreign investors
eager to tap into the next generation of Chinese firms should
soon be able to directly trade stocks in Shenzhen, but the high
valuations and extreme volatility of the country’s
second-largest exchange may limit early inflows.

The debut in November of the landmark Stock Connect trading
platform between Hong Kong and Shanghai, although marred by
technical problems, has been hailed by foreign funds as a
fundamental step in the opening up of China’s capital account.

Jan 13, 2015

China December exports beat expectations, but pressures persist

BEIJING/SHANGHAI (Reuters) – China’s exports and imports exceeded market expectations in December, a welcome sign that Beijing has found support for its cooling manufacturing sector as a stronger U.S. economy offsets weakness in Europe and Japan.

Policymakers are trying to steer the world’s second-largest economy through a soft patch as it also confronts weak consumption and a slowdown in the property market.

Jan 12, 2015

New rules on bank deposits will inject less cash than some hope

SHANGHAI, Jan 12 (Reuters) – New rules changing how Chinese
banks measure their savings base have more to do with squeezing
shadow banking than monetary easing, and will inject far less
cash into the system than many believe, Chinese money traders
say.

The People’s Bank of China (PBOC) has enlarged the deposit
base for banks by telling them to count in it their inter-bank
deposits from non-bank financial institutions.

Dec 31, 2014

China stocks end on triumphant note on last trading day of 2014

SHANGHAI, Dec 31 (Reuters) – China stocks climbed to near
5-year highs on the last trading day of the year, as mainland
markets ended the year up more than 50 percent – the best annual
performance by a major global stock market in 2014 after years
spent in the basement.

“This year was a bit unexpected,” said Tian Weidong, chief
director of research department at Kaiyuan Securities in Xi’an.

Dec 31, 2014

China money rates fall sharply in 2014 on policy easing, more steps seen in new year

SHANGHAI/HONG KONG, Dec 31 (Reuters) – Chinese money rates
dropped sharply as 2014, a consequence of how Beijing in the
second half abandoned a tight liquidity stance and then made
back-door liquidity injections and surprised with an interest
rate cut.

For 2015, with data pointing to lingering weakness in
growth, the market widely expects the People’s Bank of China
(PBOC) to continue easing.

Dec 31, 2014

China stocks head for triumphant end on last trading day of 2014

SHANGHAI, Dec 31 (Reuters) – China stocks climbed to near
5-year highs on the last trading day of the year, as mainland
markets look to end the year up more than 50 percent – the best
annual performance by a major global stock market in 2014 after
years spent in the basement.

“This year was a bit unexpected,” said Tian Weidong, chief
director of research department at Kaiyuan Securities in Xi’an.

    • 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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