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 Download
EUR/USD
Bullish
GBP/USD
Bullish
USD/JPY
Bearish
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
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
Oil - US Crude
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
Bitcoin
Bullish
More View more
Breaking news

Markets Extend Losses, Dow Jones Down Over 14 Percent for the Week

Real Time News
  • A special report amid this market slump considering what can stop the burning: 'As $SPX Crashes: What Can the Authorities Do to Stop the Bleeding?' https://www.dailyfx.com/forex/fundamental/article/special_report/2020/02/28/As-SP-500-Crashes-What-Can-the-Authorities-Do-to-Stop-the-Bleeding.html?ref-author=Kicklighter&QPID=917719&CHID=9 https://t.co/HGvNg5iL0M
  • BOE's Cunliffe says Facebook's Libra could become systemically important - BBG
  • The daily decline in silver is its largest since November 2016
  • Alongside gold, $XAG suffered a massive drop today, falling to support around the $16.78 area with RSI tagging oversold territory. Something to keep an eye on in the days to come https://t.co/M9FEyEEf8B
  • Gold drops below 1590 in largest intraday drop since 2013 $XAUUSD https://t.co/aAKI494BMu
  • Join @IG_US and @DailyFX from 7th - 9th March at @TradersExpo, booth number 311 at NY Marriott, Brooklyn Bridge for three days of forex strategy, fundamental and technical analysis discussions. Register here: https://t.co/oziKe3rJZi https://t.co/RhtPlWREnq
  • WHO raises global risk from virus from high to very high - BBG
  • EUR/GBP Weekly Price Forecast: Euro vs British Pound Signals Upside Break More details in the link below: https://www.dailyfx.com/forex/technical/home/analysis/eur-gbp/2020/02/28/EURGBP-Weekly-Price-Forecast-Euro-vs-British-Pound-Signals-Upside-Break-MK.html?CHID=9&QPID=917714 https://t.co/tDLq5YGMXQ
  • $GBP below 1.28, $JPY session highs https://t.co/GpuFtSPdqL
  • Gold is plummeting today alongside stocks, falling more than $60 - https://www.dailyfx.com/forex/market_alert/2020/02/27/Gold-Price-Forecast-Bullion-May-Require-Consolidation-Before-Further-Gains.html
China's Market News: State-Owned Company's Bonds' Trading Halted to Solvency Issue

China's Market News: State-Owned Company's Bonds' Trading Halted to Solvency Issue

2016-04-12 16:35:00
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.

- A Chinese stated-owned company saw trading halted in its bonds due to financial difficulties, the first time in Chinese market history.

- China’s rail freight transport declined -9.43% in Q1’16 while the volume of rail transport of passengers increased by +13.7%.

- The NRDC keeps domestic oil prices unchanged at $40/barrel for the sixth consecutive time.

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

Hexun News: Chinese leading online media of financial news.

- China Railway Materials, a state-owned enterprise (SOE) and the nation’s largest railway materials distributor, requested on April 11 to suspend trading on its bonds due to ongoing financial difficulties. It’s the first SOE to halt trading for such a reason. The total volume of the bonds suspended is ¥16.8 billion yuan. In specific, 1 billion yuan bonds will mature on May 17 and another ¥1 billion yuan bonds will mature on June 20. During the suspension, the stated-owned company plans to restructure the bonds to try to avoid default.

China Railway Materials ranked #430 in Fortune Global 500 List in 2011. However, the company’s condition has become worse as the global transportation sector, as well as the broader Chinese economy, has slowed. In 2014, the company’s outlook was downgraded from stable to negative by Dagong Global Credit Rating, a Chinese credit rating agency approved by PBOC. Its Q3’15 financial report showed that the company’s net profit dropped -47.8% from a year earlier.

China Railway Materials’ difficulties are not unique – they are shared by many other firms in the manufacturing and energy sectors, which are facing shrinking demand and oversupply. On one hand, Chinese government issues policies to assist companies with growth potentials; on the other hand, ‘zombie’ firms are required to leave the market. For Chinese manufacturing firms, they have to pass the “survival of the fittest” test in order to continue to operate. How to solve the debt issue is one of the hardest questions they need to solve in the months ahead.

- China Railway Corp., the national railway operator, reported significant drop in rail freight traffic in Q1’16. The volume of rail freight transport declined -9.43% to 788 million tons. The rail freight transport volume has been shrinking over the past few years. For instance, over each quarter of 2015, the volume of rail freight transport dropped by -9.4%, by -10.8%, by -13.9% and by -13.4% respectively. On the contrary, the number of passengers transported by rail increased significantly. In the Q1’16, the number of passengers carried by railway increased by +13.7% to 668 million. These data, while inconsistent, indicate that the Chinese economy continues its evolution from a “secondary sector” economy (led by manufacturing) to a “tertiary sector” economy (led by services).

China Finance Information: a finance online media administrated by Xinhua Agency

- The National Development and Reform Commission (NDRC) announced on April 11 to keep domestic oil prices unchanged at $40/barrel for the sixth consecutive time in 2016. Oil prices in Chinese domestic market are not free floating. NDRC manages the oil prices by issuing a guidance price every ten workdays.

- In March, Foreign Direct Investment (FDI) in China increased by +7.8% to ¥82.3 billion yuan ($12.9 billion) from a year ago. FDI in the first quarter increased by +4.5% to ¥222.4 billion yuan ($35.4 billion). Western regions have the highest growth in attracting foreign investment; the Q1’16 FDI in these regions increased by +42.5% to ¥21.3 billion yuan ($3.9 billion).

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.