FOREX: JPY Crosses - Risk Sentiment Help The Crosses Higher

Zhejiang province has issued CNY1.6 billion of special bonds specifically for purchasing existing commercial housing, Yicai news agency has reported. Industry insiders said although the value amounted to only 3% of the special bonds issued by the province in total, the move had significant policy implications and the proportion may rise as related projects improve. The bonds were rated AAA and backed by provincial government credit, and would support eight affordable housing projects in Huzhou, Wenzhou, and Jiaxing. Zhejiang’s initiative provides a replicable model for de-stocking efforts in lower tier regions, according to Yan Yuejin, deputy director at E-house China Research Institute, who noted third- and fourth-tier cities face high housing inventory and slow sales.

Small and medium-sized banks are expected to accelerate merger and reorganisation activity aimed at improving quality, with the number of banking institutions likely to drop to 3,000 from a peak of 4,600, 21st Century Business Herald reported, citing analysts. Increasing numbers of rural banks will be merged and restructured into commercial bank branches, which will enhance service capabilities and risk resistance, the newspaper said, citing Dong Ximiao, chief researcher at Merchants Union Consumer Finance. In total, 184 small and medium-sized banks have been approved for merger or dissolution in the first five months this year, the herald noted.

China’s social logistics value increased by 5.5% y/y in April, down 1.4 percentage points compared to March, as operations withstood the pressure of external shocks and maintained a generally stable and positive trend, according to Meng Yuan, an analyst at the China Logistics Information Center. In the first four months, the logistics value of industrial products increased by 5.7% y/y, down 0.2 pp compared to the first quarter, while in April, China’s e-commerce logistics index was 111 points, up 1.1 points from March.