• According to traders – PBOC gauging reverse-repo demand for 14- and 28-day and also for 14-day repo
  • Yuan mid-point set at 6.1103 (prior close 6.0673)

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Added – This from MNI, quoring the 21st Century Business Herald:

  • The Big Four state-owned banks granted total new loans of CNY170 billion as of February 16, sources familiar with the data said.
  • Their deposits increased by CNY38 billion during the same period.
  • Total new loans of all Chinese banks jumped to a four year high of CNY1.32 trillion in January, higher than market median forecast of CNY1.1 trillion

And added, more:

  • The People’s Bank of China set the yuan fixing weaker Wednesday morning despite the fall in the U.S. dollar against other currencies overnight.
  • Traders noted recent yuan weakness due to strong purchases of U.S. dollars by big banks and expect the yuan to remain weak in the near future, with the first support level at 6.07.
  • The yuan closed at 6.0673 on Tuesday, its lowest level this year.
  • The PBOC is seen guiding both yuan and money rates lower to deter capital inflows, given the trade surplus and foreign direct investment were both up strongly in January