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
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
Oil - US Crude
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
Wall Street
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
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
Mixed
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
More View more
Real Time News
  • Commodities Update: As of 13:00, these are your best and worst performers based on the London trading schedule: Silver: 2.00% Gold: 0.48% Oil - US Crude: -1.54% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/ICbXM6g3dk
  • Heads Up:🇺🇸 Michigan Inflation Expectations Final due at 14:00 GMT (15min) Previous: 2.1% https://www.dailyfx.com/economic-calendar#2020-05-29
  • Heads Up:🇺🇸 Michigan 5 Year Inflation Expectations Final due at 14:00 GMT (15min) Previous: 2.5% https://www.dailyfx.com/economic-calendar#2020-05-29
  • Heads Up:🇺🇸 Michigan Consumer Sentiment Final due at 14:00 GMT (15min) Expected: 74 Previous: 71.8 https://www.dailyfx.com/economic-calendar#2020-05-29
  • Indices Update: As of 13:00, these are your best and worst performers based on the London trading schedule: US 500: -0.18% Wall Street: -0.45% France 40: -0.95% Germany 30: -1.19% FTSE 100: -1.55% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/YWyi6VjNe4
  • Fed's Mester says yield curve control is not for this phase of action where Fed is supporting market functioning
  • Fed's Mester sees yield curve control as forward guidance support
  • GBP/USD: cluster of recent lows around the 1.2160 level and the Tuesday’s low print at 1.2190 may act as the first level of support for the pair. Get your $GBPUSD technical analysis from @nickcawley1 here:https://t.co/yvGzi5hoQw https://t.co/39532trXKn
  • RT @JeremyNaylor_IG: #RiskEventoftheWeek - 1 June @DailyFX discusses the #ECB meeting and the potential for indications of failure of final…
  • 🇺🇸 PCE Price Index MoM Actual: -0.5 Previous: -0.3% https://www.dailyfx.com/economic-calendar#2020-05-29
China's Market News: A Grand Shift in China's Economic Policies

China's Market News: A Grand Shift in China's Economic Policies

2016-05-10 16:48:00
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.

- Chinese media interpreted a major economic policy shift from ‘the authority’s’ commentary.

- China announced that they will launch major reforms on resource taxes beginning on July 1.

- State-affiliated think tank forecasted the economy to grow 6.7% in the second quarter.

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

Hexun News: Chinese leading online media of financial news.

- The commentary on the L-shaped economy issued by People’s Daily has been in the spotlight in China and this has led to considerable discussion and interpretation.

  • Why the commentary is so important?

It is the third instance within a year that People’s Daily quoted theauthoritative person’ without mentioning any specific names. The previous two instances were on May 5th, 2015 and January 4th, 2016. All three commentaries were released right after China’s Politburo meeting.

  • Who is the unnamed authority trying to talk to?

It is a message intended for both market participants and each level of regulators. On one hand, it intends to guide market moves; on the other, it gives instructions for regulators to achieve targets.

  • What are the key messages in the commentary?

Temporary improved data in the first quarter does not mean recovery; B) Monetary policy will not be too loose; C) Capital markets should return to normal; D) Supply-side reforms will continued despite of high short-term costs, and E) it is too soon to say whether the economy faces more inflation risk or deflation risk.

- The foreign investment that China used over the first four months of 2016 increased by 4.8% to 286.8 billion yuan ($45.3 billion) from a year ago. The new foreign-invested enterprises set up during the first four months was 8298, increasing by 6.5% from a year ago. The high-tech service industry had the highest growth in foreign investment, with an increase of 108.6% to 32.5 billion yuan ($5.1 billion).

- China plans to spend 600 billion yuan to relocate 10 million people in poverty to more developed areas with better infrastructures by 2020. 250 billion yuan of the fund will come from the fiscal revenue and the rest will be financed through government debt. In 2016, the government plans to move 2 million people.

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.

- The State Council announced that they will launch reforms on resource taxes beginning on July 1, 2016, which marks another major step the country has taken in tax reform. The current resource tax is placed on minerals such as iron ore, copper and gold and is based on volume. Under the new tax rule, more natural resources will be included, such as water, forest and shoals; producers will pay the resource tax on the basis of prices. The reform aims to reduce excess burdens on companies, as well as give local governments more freedom to determine tax rates, as the resource tax is a major source of income for local governments.

- The State Information Center of China (SICC) forecasted that China’s economy will grow by 6.7% in the second quarter of 2016. SICC is a leading think tank affiliated to the National Development and Reform Commission. The think tank said that the increased investment in infrastructures and real estate has helped to stabilize the economy. Also, the service industry has maintained stable growth. SICC expected that the service industry will expand by 7.5% in the second quarter.

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.