Daily Chinese yuan and money market update

Published: 27 Aug 2009 02:09:05 PST

SHANGHAI, Aug 27 - Following is a summary of market activity and news articles on Thursday relating to the yuan and China's money market.

DLR/CNY EUR/CNY YEN/CNY* 1-YR NDF** 1-YR VOLS** Close 6.8320 9.7330 7.2903 6.7899 4.60/4.80 pct Mid-point 6.8320 9.7129 7.2739*** Pvs close 6.8311 9.7827 7.2623 6.7880 4.40/4.80 pct Sources: <CNYX=CFXS>, <CNYNDFOR=>, <CNYVOL>

* Yuan per 100 yen.

** Offshore NDF/VOLS figures as at 0959 GMT, compared with levels around the same time in the previous session.

*** The mid-point is a benchmark set by the central bank. The yuan may rise or fall 0.5 percent from its mid-point versus the dollar each day and 3.0 percent for non-dollar currencies.

MONEY AND BOND MARKET

7-day repo* 90-day PBOC bill 1-yr treasury bond

<CN7DRP=CFXS> <CN3MNFIX=R> <CN1YTFIX=R> Aug. 27 1.3687 1.3276 1.6162 Change on day -0.0060 0.0040 -0.0020 Change on mth -23.38 -0.0960 -0.0647

* Change in weighted average and percentage point(s).

Please double-click on <CNFIXINDEX> for a full list of Chinese fixed-income reference rates.

OPEN MARKET ACTIVITY

** China c.bank 3-mth bill yield flat at auction

SHANGHAI - China's central bank auctioned 80 billion yuan ($11.7 billion) of three-month bills on Thursday at a yield of 1.3280 percent, traders said, in line with market forecasts and unchanged from last week.

Full story: [ID:nBJD002962]

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MARKET NEWS

** Yuan ends lower amid China recovery uncertainty

SHANGHAI - The yuan closed slightly lower on Thursday after the dollar rose against a basket of global currencies overnight, but dealers said the yuan's stable stance remained intact amid uncertainty over China's economic recovery.

Full story: [ID:nSHA221805]

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** China stock drop on share supply concern; HK shares fall

HONG KONG/SHANGHAI - Hong Kong shares shed 1 percent in thin turnover on Thursday as disappointing earnings from blue chips including CNOOC and Esprit made investors wary ahead of a flurry of results in coming days.

Full story: [ID:nHKG228778]

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** China bill yields up after c.bank drain

SHANGHAI - Chinese bill yields mostly rose on Thursday after the central bank conducted a sizeable weekly net drain of 40 billion yuan ($5.9 billion) from the money market, the second week of net drains of funds.

Full story: [ID:nSHA205831]

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** China plans to let funds, brokers start REITs-sources

SHANGHAI - China plans to allow fund houses and brokerages to launch real estate investment trusts, or REITs, that would be publicly traded on the Shanghai and Shenzhen stock exchanges, two people with direct knowledge of the proposal said.

Full story: [ID:nSHA221983]

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POLICY NEWS

** China wealth fund to boost investment 10-fold -media

TOKYO - China's sovereign wealth fund will increase new overseas investment this year by around 10 times from the previous year on signs the global economy has bottomed out, one of the organisation's top managers said in a newspaper interview.

Full story: [ID:nT204302]

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** Macquarie gets OK for China trust joint venture

BEIJING - Macquarie Group Ltd <MQG.AX> has received regulatory approvals to launch a trust joint venture offering corporate banking and asset management services in China, with an initial capital base of 300 million yuan ($44 million), the bank said on Thursday.

Full story: [ID:nnPEK206372]

ECONOMIC NEWS

** China says to curb industrial overcapacity

BEIJING - China's cabinet said on Wednesday that it would take steps to curb overcapacity and redundant investment in industries ranging from steel to wind power equipment, the official Xinhua news agency reported.

Full story: [ID:nPEK160728]

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** China eyes inflation expectations as Oct. 1 looms

BEIJING - China's economic planning agency said on Thursday that it had instructed local authorities to keep a lid on the prices of everyday goods to contribute to stability ahead of a key political anniversary in just over a month's time.

Full story: [ID:nPEK204298]

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** China August steel output seen at record high

SHANGHAI - China's crude steel output could hit a record in August as data from the China Iron and Steel Association (CISA) showed daily production was running at an all-time peak of 1.67 million tonnes in the first 10 days of the month, an industry source said on Thursday.

Full story: [ID:nSHA210694]

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CORPORATE NEWS

** China Vanke's $1.6 bln share offer rattles market

SHANGHAI - China Vanke Co Ltd <000002.SZ>, the country's No.2 property developer, plans to raise up to $1.6 billion by selling new shares to fund expansion in a property revival, dealing a blow to the vulnerable stock market.

Full story: [ID:nSHA328268]

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** Bank of China Q2 profit up, bullish on economy

BEIJING/HONG KONG - Bank of China <3988.HK>, the country's biggest foreign-exchange lender, posted a 10 percent rise in second-quarter profit, beating forecasts, as lending surged under Beijing's economic stimulus programme.

Full story: [ID:nPEK181405]

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** SAIC Motor H1 net falls 26 pct, but outlook solid

SHANGHAI - SAIC Motor Corp <600104.SS>, China's biggest automaker, posted a 26.4 percent fall in first half earnings on provisions for its loss-making South Korean unit but was cautiously optimistic for the rest of the year as government policy initiatives bolstered automobile demand.

Full story: [ID:nSHA81262]

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** Unicom to announce China iPhone deal -analyst

BEIJING/TAIPEI - China Unicom <0762.HK> will announce a deal to sell Apple's <AAPL.O> iPhone in China as soon as Friday, an analyst said, citing an industry source with direct knowledge of the situation.

Full story: [ID:nnPEK214384]

- - - - To see a guide on contributions, please click <CN/CONT1>. (Compiled by Lu Jianxin; Editing by Jacqueline Wong and Chris Lewis)