For Open Market operations
- To inject 20 bn yuan through 7-day reverse repos
- To inject 20 bn yuan through 14-day reverse repos
- To inject 20 bn yuan through 28-day reverse repos
7-day repo has opened at 2.45%, down from 2.7641% yesterday (weighted average)
For the week as a whole, PBOC drained net 120bn yuan (110bn yuan drain the week before)
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A few bits and pieces from China this morning:
China's State Administration of Foreign Exchange (SAFE) statement earlier related to FX reserves:
- China forex supply and demand basically balanced in February
- Chinese companies' forex financing continued to rise
- Domestic entities' forex purchase was more rational
Reports too this morning on Foreign direct investment, this via Xinhua:
- Foreign direct investment (FDI) into the Chinese mainland grew 9.2 percent year on year to 58.6 billion yuan (850 million U.S. dollars) in February 2017, official data showed Thursday
- Total FDI in the first two months stood at 139 billion yuan, down 2.3 percent on the previous year, the Ministry of Commerce (MOC) said
- Investment from European Union countries grew 13.8 percent in the first two months year on year
- Most investment went to the service and manufacturing sectors, with investment in utility services rising 184 percent year on year
- Meanwhile, 1,850 new foreign-funded enterprises were established on Chinese mainland in February, up 33.3 percent on the same period last year
- Last year, China attracted 126 billion U.S. dollars of foreign direct investment, the largest recipient among developing countries, data showed.
China's Economic Information Daily has a commentary piece on the Federal Reserve rate hike:
- Externality effects should be watched closely, more hikes this year is likely to weigh on the global economy
- Says the USD to rise
- Will make the weakness in commodity prices worse, with negatives for countries that focus on exports of resources
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Also, I posted this earlier ICYMI (and are interested):
- All the China rate hikes in one spot (recap/summary)
