MNI China Daily Summary: Monday, November 10

POLICY: China will suspend countermeasures against five U.S.-related subsidiaries of Hanwha Ocean Co. for one year, the Ministry of Commerce announced.

LIQUIDITY: The People's Bank of China (PBOC) conducted CNY119.9 billion via 7-day reverse repos, with the rate unchanged at 1.40%. The operation led to a net injection of CNY41.6 billion after offsetting maturities of CNY78.3 billion today, according to Wind Information

RATES: The seven-day weighted average interbank repo rate for depository institutions (DR007) rose to 1.4993% from 1.4130%, Wind Information showed. The overnight repo average increased to 1.4842% from 1.3321%. 

YUAN: The currency strengthened to 7.1175 against the dollar from the previous 7.1225. The PBOC set the dollar-yuan central parity rate higher at 7.0856, compared with 7.0836 set on Friday. The fixing was estimated at 7.1191 by Bloomberg survey today.

BONDS: The yield on 10-year China Government Bonds was last at 1.7800%, up from the previous close of 1.7805%, according to Wind Information. 

STOCKS: The Shanghai Composite Index edged up 0.53% to 4,018.60, while the CSI300 index increased 0.35% to 4,695.05. The Hang Seng Index rose 1.55% to 26,649.06. 

FROM THE PRESS: Christmas orders are expected to support China’s exports, Securities Daily reported. Yiwu, a city in Zhejiang province, the world's largest distribution center for Christmas supplies, exported a total of CNY5.17 billion Christmas products in the first three quarters, an increase of 22.9% y/y. Such exports to Latin America and the EU rose by 17.3% and 45.0% y/y, respectively, accounting for more than 60% of Yiwu's total Christmas product exports.

China's foreign exchange reserves amounted to USD3.34 trillion by end-Oct, up USD4.7 billion from end-Sep, representing a rise of 0.14%, Yicai.com reported citing data from the State Administration of Foreign Exchange. The dollar index rose in October, and global financial asset prices generally elevated, driven by macro data and monetary policies and expectations of major economies, the SAFE said. The gold reserves stood at 74.09 million ounces, an increase of 30,000 ounces from the previous month, marking the 12th consecutive month that the central bank has increased its gold holdings, the newspaper added.

Major property developers have reduced their debt significantly through innovative methods such as debt-to-equity swaps and asset-for-debt swaps, bringing the industry's risk clearing into a new stage, wrote Securities Daily in a commentary, after Sunac China and Country Garden announced reductions of their overseas debt by approximately USD9.6 billion and USD11.7 billion. So far, 21 real-estate companies facing difficulties have had their debt restructuring or reorganisation approved or completed, with a total debt reduction scale of about CNY1.2 trillion, data by China Index Academy showed.