Tag Archives: PBoC

“Counter-cyclical” adjustment factor resumed to anchor Chinese currency

China resumed CNY fixing “counter-cyclical” adjustment factor The People’s Bank of China (PBOC) announced on August 24 that China’s CNY fixing reporting banks have resumed the counter-cyclical adjustment (CCA) factor in the CNY official midpoint this month. This is the second move of Chinese authorities after the adoption of a 20% reserve requirement of FX Read more […]

Quality Over Quantity: China’s Economic Growth Focus in 2018 – Part 1

The Central Economic Work Conference (CEWC) was held in Beijing on 18-20 December, 2017. As the first CEWC after the 19th Party Congress, it set the tone for China’s central government’s economic policies in 2018. They are crucial to the long-term development of the world’s second-largest economy. Highlights of the CEWC (1) High-quality development over Read more […]

Asian Fixed Income: PBOC Has Widened Access to China’s Onshore Bond Market for Foreign Investors

On Feb. 24, 2016, the People’s Bank of China announced that offshore commercial banks, insurance companies, securities companies, fund management companies, and pension funds are free to invest in China’s interbank bond market.  Previously, foreign investors could only access China’s onshore bond market through a QFII or RQFII quota.  The removal of the quota system Read more […]

Asia Fixed Income: People’s Bank of China (PBoC) Rate Cuts

On June 28, 2015, the PBoC announced a 25 bps policy rate cut and a 50 bps targeted reserve ratio cut to support growth. Following the news, the money market rate opened lower and the yuan weakened. While there was no significant or immediate impact on China’s onshore bond market, the yield-to-maturity tracked by the Read more […]

Asia Fixed Income: Opening of the China Onshore Repo Market

On June 3, 2015, the PBoC announced the opening of the China onshore repo market; the offshore RMB-clearing and participating banks will be allowed to trade bonds on repos in the onshore interbank bond market.  This is an important development for the offshore RMB market, as it will broaden the offshore RMB supply and support Read more […]

Asia Fixed Income: Post the Rate Cut by PBoC

The People’s Bank of China (PBoC) announced rate cuts on Nov 21; with 1-year deposit rate lowered by 25bps to 2.75% and the lending rate lowered by 40bps to 5.60%. The market is expecting the rate cut not only to revive the growth but also accelerate the interest rate liberalization.  The cash bonds responded favorably Read more […]