We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
USD/JPY
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Bearish
Oil - US Crude
Mixed
Bitcoin
Mixed
More View more
Real Time News
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 95.94%, while traders in France 40 are at opposite extremes with 87.29%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/9Q4yJsrfRI
  • EUR/USD Technical Analysis: Euro Rise Unlikely to Undo Downtrend - https://www.dailyfx.com/forex/technical/home/analysis/eur-usd/2019/10/16/EURUSD-Technical-Analysis-Euro-Rise-Unlikely-to-Undo-Downtrend.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Spivak&utm_campaign=twr #EURUSD #technicalanalysis
  • Forex Update: As of 04:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: 0.17% 🇨🇭CHF: 0.09% 🇪🇺EUR: -0.02% 🇬🇧GBP: -0.25% 🇦🇺AUD: -0.32% 🇳🇿NZD: -0.36% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/la6Ae67t8c
  • Indices Update: As of 04:00, these are your best and worst performers based on the London trading schedule: Wall Street: -0.23% US 500: -0.27% France 40: -0.29% Germany 30: -0.31% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/jJoCuqFBZ3
  • Geopolitical developments send #oil prices soaring or falling. Get your market update from @MartinSEssex here:https://t.co/XVXLyG8vjq #OOTT https://t.co/Kv2LHTbEYP
  • US Dollar Technical Outlook: USD/INR, USD/SGD, USD/MYR, USD/IDR $USDINR $USDSGD #ASEAN - https://www.dailyfx.com/forex/technical/article/special_report/2019/10/16/US-Dollar-Technical-Outlook-USDINR-USDSGD-USDMYR-USDIDR.html?CHID=9&QPID=917702 https://t.co/kMf5jZVvrx
  • Overnight index swaps are now pricing in a 100% chance of an #RBNZ rate cut in November, after briefly softening following better-than-expected New Zealand CPI data earlier today #RBNZ $NZDUSD
  • The Swedish #Krona and Norwegian #Krone will be in for a tense week ahead of #Brexit-related drama and a crucial EU summit which could be a turning point for the EU-UK divorce. Get your market update from @ZabelinDimitri :https://t.co/zjTNQmDHTt https://t.co/zhR7J38A4M
  • RT @cherykang: Carrie Lam just started her policy address. Lawmakers chanting "five demands, not one less." Now, policy address temporaril…
  • Commodities Update: As of 02:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 0.27% Silver: 0.14% Gold: 0.09% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/TlvwJsIj0c
China's Market News: ABS on Non-Performing Loans Will Be Restricted to Institutional Investors

China's Market News: ABS on Non-Performing Loans Will Be Restricted to Institutional Investors

2016-03-14 16:50:00
Renee Mu, Currency Analyst
Share:

This daily digest focuses on market sentiment, new developments in China’s foreign exchange policy, changes in financial market regulations and Chinese-language economic coverage in order to keep DailyFX readers up-to-date on news typically covered only in Chinese-language sources.

- China’s Central Bank Governor said asset-backed securities will only be made available to institutional investors.

- The securities regulator said that China will not re-introduce the circuit-breaker system for a long period of time.

- Shenzhen will raise transaction taxes on second-hand home purchases by 50% on April 1 in the effort of controlling property prices.

To receive reports from this analyst,sign up for Renee Mu’ distribution list.

PBOC News: China’s Central Bank

- China’s Central Bank Governors attended press conference at NPC meetings.

China’s Central Bank Governor Zhou Xiaochuan said China has decided to rely more on domestic consumption. Although international trade is important, the country will not over rely on trade to promote GDP growth. Thus, the Central Bank will avoid introducing polices designed to move exchange rates to stimulate exports.

He believes that, in general, the Central Bank will continue to adopt a prudent monetary policy if no major financial crisis begins to take place. However, the monetary policy will remain flexible in case of any unexpected crisis.

In terms of asset-based securities (ABS) based on non-performing loans, China’s Central Bank Deputy Governor Pan Shenggong said that in order to control risks, the Central Bank has selected several large-sized financial institutions with strong credit to participate in the pilot program. Also, potential buyers of the ABS products will be restricted to institutional investors; as it is not allowed to sell these products to retail investors.

Sina News: China’s most important online media source, similar to CNN in the US. They also own a Chinese version of Twitter, called Weibo, with around 200 million active usersmonthly.

- China Banking Regulatory Commission (CBRC), China Securities Regulatory Commission (CSRC) and China Insurance Regulatory Commission (CIRC) chairmen took questions at the press conference.

CBRC Chairman Shang Fulin commented on the bank debt issue. He said the regulator is planning to launch a creditor-committee system, which allows large creditors of one company to set up a committee and figure out one solution for the specific company. He also disagreed with international grading agency Moody’s downgrading China’s outlook.

CSRC Chairman Liu Shiyu said China’s equity market is in a special period, which requires special tools. The regulator will continue to stabilize the market by injecting funds through China Securities Finance Corp for quite a long period. Chinese regulators will continue to protect stock prices.

Mr. Liu also said China will not re-introduce the circuit-breaker mechanism over the following years. The majority of Chinese equity investors are retail investors. The fact will remain unchanged for a long time. Thus, the Chinese equity market does not meet requirements to launch the circuit-breaker system.

CIRC Chairman Xiang Junbo touched on the issue of insurance companies investing in the secondary equity market. He said the overall risk of the insurance industry is under control: 90% of the investments made by insurance companies are AA-level or above assets. 88% of the investments have guarantees. As insurance companies are normally long-term investors, their participation in the equity market can provide strong support to the market.

China’s financial industries are divided into three categories: banking, securities and insurance. Each industry has its own regulator to conduct daily management. The Central Bank, on the other hand, designs macroeconomic policies and regulates financial markets on a larger scale.

Hexun News: Chinese leading online media of financial news

- Shenzhen announced new measures to control the soaring housing prices in the region: the transaction tax of purchasing second-hand homes will be raised by 50% beginning on April 1, 2016. Also the Central Bank requires commercial banks in Shenzhen to check the sources of funds used to make down payments and tighten restrictions. Shenzhen’s property prices surged more than 50% over the past year which has raised regulators concerns.

Written by Renee Mu, DailyFX Research Team

To receive reports from this analyst,sign up for Renee Mu’ distribution list.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.