Daily Chinese yuan and money market update
SHANGHAI, July 3 (Reuters) - 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 6.8510 10.8775 6.4485 6.5030 7.00/7.25 pct Mid-point 6.8529 10.8814 6.4656*** Pvs close 6.8530 10.8298 6.4420 6.4840 7.05/7.45 pct
Sources: CNYX=CFXS, CNYNDFOR=, CNYVOL
* Yuan per 100 yen.
** Offshore NDF/VOLS figures as at 0930 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 July 3 2.9004 3.5807 3.5623 Change on day -0.2595 0.0030 -0.0009 Change on mth -0.2149 0.0587 0.2490
** Change in weighted average and percentage point(s).
Please double-click on CNFIXINDEX for a full list of Chinese fixed-income reference rates.
WEEKLY COLUMN
** China Money: C.bank may resort to special bills
SHANGHAI - China's central bank is having increasing difficulty draining funds from the money market without destabilising the market -- suggesting it may resort to selling special bills to individual banks.
Full story: [ID:nSHA303488]
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OPEN MARKET ACTICITY
** China central bank drains 13 bln yuan via repos
SHANGHAI - China's central bank is draining 13 billion yuan ($1.9 billion) from the money market on Thursday through 28-day bond repurchase agreements, traders said.
Full story: [ID:nSHA353495]
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** China c.bank 3-month bill yield flat at auction
SHANGHAI - China's central bank auctioned 23 billion yuan ($3.4 billion) of three-month bills in its regular open market operations on Thursday at a yield of 3.3978 percent, traders said, in line with market expectations.
Full story: [ID:nSHA290916]
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MARKET NEWS
** Yuan falls vs dollar in NDFs on capital controls
SHANGHAI - China's yuan fell against the dollar in the offshore non-deliverable forwards market on Thursday, despite global dollar weakness, after Beijing announced fresh steps to tighten capital controls.
Full story: [ID:nSHA269612]
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** China stocks hold chart support, end up 2 pct
SHANGHAI - China's main stock index climbed nearly 2 percent and turnover expanded to a two-week high on Thursday as the market bounced from near major chart support.
Full story: [ID:nSHA328181]
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** China bond curve steepens as c.bank reduces drain
SHANGHAI - China's bill and bond curves steepened on Thursday because of improving money market liquidity, pushing repo rates down sharply.
Full story: [ID:nSHA354730]
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POLICY NEWS
** U.S. warns of resistance in China to market reforms
BEIJING - China must make a stand against the opponents of reform and allow market forces to play a greater role in setting prices, including the yuan's exchange rate, a senior U.S. official said on Thursday.
Full story: [ID:nPEK356170]
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** China should cut tax to fight inflation
BEIJING - China should give tax cuts a try in fighting inflation because its monetary tightening has proved ineffective and costly, a statistics official said in comments published on Thursday.
Full story: [ID:nPEK353499]
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** China tightens capital controls to thwart hot money
BEIJING - China on Wednesday tightened the administration of its capital controls in a move aimed at deterring speculative inflows of foreign currency betting that the yuan will keep rising.
Full story: [ID:nPEK338718]
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** China faces tough task to make capital curbs bite
BEIJING - Beijing's latest drive to stamp out unauthorised capital inflows is likely to be no match for resourceful speculators determined to bring money into China to catch the wave of a rising yuan, bankers and officials say.
Full story: [ID:nPEK347395]
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ECONOMIC NEWS
** China raises cargo train charges
BEIJING - China has increased charges on cargo train transport to cope with rising fuel prices, the National Development and Reform Commission said on Wednesday.
Full story: [ID:nPEK337419]
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CORPORATE NEWS
** Sinopec refining losses to stay after price hike
BEIJING - Qilu, the best-performing of all the refineries run by Sinopec (0386.HK: Quote, Profile, Research) in the first five months of this year, may lose around 800 yuan ($116.8) for each tonne of crude it processes in July, an industry source said on Thursday.
Full story: [ID:nPEK350704]
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** Ping An Insurance denies talk of tax audit snags
SHANGHAI, July 3 (Reuters) - Ping An Insurance (Group) Co of China (2318.HK: Quote, Profile, Research) (601318.SS: Quote, Profile, Research) on Thursday denied rumours that it was facing problems related to a tax audit, after its shares in both Hong Kong and Shanghai tumbled 10 percent the previous day.
Full story: [ID:nSHA343105]
- - - - To see a guide on contributions, please click <CN/CONT1>. (Compiled by Shanghai Newsroom; Editing by Edmund Klamann)
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