EM CREDIT SUPPLY: Indonesia: New USD deal FV

Non-bank financial institutions have contributed more to China's recent market rally rather than household deposit migration, despite household deposits falling by CNY1.11 trillion in July, according to Guan Tao, former senior official at the State Administration of Foreign Exchange (SAFE). Residents savings have declined every July since 2009, reflecting seasonal factors rather than structural shifts, Guan said. He cautioned that attributing market movements to household deposits was reductive, noting that in April, deposits dropped by CNY1.39 trillion, an even larger fall than in July, yet the Wind All A Index fell 3.2%.

The former chairman at the China Securities Regulatory Commission (CSRC), Yi Huiman, has come under investigation for serious violations of discipline and law, the Central Commission for Discipline Inspection has announced. Yi, who stepped down from the CSRC chairmanship in February 2024 after a five-year tenure, had been serving as deputy director of the Economic Affairs Committee of the 14th National Committee of the Chinese People’s Political Consultative Conference (CPPCC).

China’s foreign exchange reserves stood at USD3.3 trillion at the end of August, up 0.91% m/m, according to data released by the State Administration of Foreign Exchange (SAFE). Reserves increased as the U.S. dollar index weakened, while global financial asset prices strengthened, SAFE noted. Reserves had reached their highest level since 2016 which reflects the country’s capacity to withstand and manage external shocks, a chief economist told Securities Daily.