China Vice Premier He Lifeng said China will continue to support a free and open economic environment in Hong Kong and boost offshore yuan liquidity in the financial hub.
China’s central bank launched daily overnight reverse repurchase operations on Monday, kicking off a revamped liquidity framework that establishes the short-term tool as its primary policy anchor.
China’s central and local governments will probably raise at least a net 2.2 trillion yuan ($330 billion) in bond sales in the final two months of the year, the second-highest amount on record for the period, as the authorities step up efforts to support growth.
The People’s Bank of China’s consideration of shifting its policy rate benchmark to the overnight reverse-repo rate would effectively lower borrowing costs, supporting bond investments, according to analysts.
China’s central bank may be embarking on a multi-month transition toward an overnight policy interest rate, a shift that will require more frequent liquidity operations using the new benchmark candidate to test market reception, analysts say.
The People’s Bank of China’s consideration of shifting its policy rate benchmark to the overnight reverse-repo rate would effectively lower borrowing costs, supporting bond investments, according to analysts.
China’s campaign to promote the global use of the yuan appears to be accelerating as the authorities seek to build a more comprehensive financial ecosystem for the currency beyond just trade settlement.
BNP Paribas Asset Management has been hedging its bullish bets on higher-yielding emerging-market bonds by shorting offshore Chinese interest-rate swaps, according to James McAlevey, head of global aggregate and absolute return.
Hong Kong aims to deepen its role in promoting yuan use across financing, investment and trade, and will set up a mechanism to strengthen currency liquidity, its chief executive said in a policy speech.
China’s relentless drive to keep the yuan stable is crippling activity in the offshore currency derivatives market, depriving foreign investors of trading opportunities and leaving them exposed should volatility return.
With record trading volumes and new listings providing little boost for shares of Hong Kong Exchanges & Clearing Ltd., analysts are increasingly looking for a jolt from the company’s expansion of non-equity business.
China’s central bank injected liquidity through overnight reverse repos on Friday, marking its first such operation in the middle of a month in a boost to bond bulls.
The yuan’s recent calm run may be nearing an end as September approaches, with typically strong fall exports and other seasonal factors expected to lift the Chinese currency, analysts say.
A record pile of yuan in Hong Kong is making its way to corporate loans while driving a surge in capital market activity, signaling that China’s drive to internationalize its currency is advancing.
The yuan advanced after China’s central bank signaled its comfort with the currency’s strength by setting the daily reference rate below 6.80 per dollar for the first time since 2023.
A gauge of demand for an auction of China’s benchmark sovereign bonds touched an all-time high on Wednesday, indicating strong appetite for the securities.
China’s central bank announced a slew of measures aimed at enhancing Hong Kong’s role in promoting overseas use of the yuan as well as boosting the city’s financial connectivity with the mainland.
The Exchange Square Complex in Hong Kong. Photographer: Lam Yik/Bloomberg
China’s central bank announced a slew of measures aimed at enhancing Hong Kong’s role in promoting overseas use of the yuan as well as boosting the city’s financial connectivity with the mainland.
The Exchange Square Complex in Hong Kong. Photographer: Lam Yik/Bloomberg
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