MNI China Daily Summary: Tuesday, November 11

POLICY: China's National Development and Reform Commission will make good use of the central budget to support private investment projects, Guan Peng, the agency's deputy director of the Economic Operation Adjustment Bureau, told reporters.

POLICY: The People’s Bank of China will implement a moderately loose monetary policy, utilise various tools to maintain relatively loose social financing conditions, while continuing to improve its policy framework and strengthen its implementation and transmission, according to the Q3 monetary report.

POLICY: China will increase financing support for key private investment which has been affected by changes in the international environment and the fall in real estate prices, officials of National Development And Reform Commission told reporters.

LIQUIDITY: The PBOC conducted CNY403.8 billion via 7-day reverse repos, with the rate unchanged at 1.40%. The operation led to a net injection of CNY286.3 billion after offsetting maturities of CNY117.5 billion today, according to Wind Information

RATES: The seven-day weighted average interbank repo rate for depository institutions (DR007) increased to 1.5126% from 1.4993%, Wind Information showed. The overnight repo average rose to 1.5094% from 1.4842%.

YUAN: The currency weakened to 7.1207 against the dollar from the previous 7.1175. The PBOC set the dollar-yuan central parity rate higher at 7.0866, compared with 7.0856 set on Monday. The fixing was estimated at 7.1197 by Bloomberg survey today.

BONDS: The yield on 10-year China Government Bonds was last at 1.7800%, unchanged from previous, according to chinamoney.com.cn.

STOCKS: The Shanghai Composite Index fell 0.39% to 4,002.76, while the CSI300 index declined 0.91% to 4,652.17. The Hang Seng Index rose 0.18% at 26,696.41.

FROM THE PRESS: The State Council has issued 13 new measures to boost private investment, China Securities Journal reported. For projects in the fields of railways, nuclear power, hydropower, inter-provincial and inter-regional DC transmission channels, oil and gas pipelines, imported liquefied natural gas receiving and storage facilities, and water supply that require national approval, and have certain revenue, a special feasibility study on the participation of private capital should be conducted. Private capital can hold more than 10% of the shares for eligible projects, the newspaper said.

China must strengthen top-level planning and better coordinate the layout of major productive forces to prevent redundant investment in developing “new quality productive forces,” Vice Premier He Lifeng wrote in an article published in People’s Daily. He said authorities should leverage the leading role of major economic provinces and encourage regions to develop industries that align with their comparative advantages and strengths. Policymakers should also focus on the forefront of the new round of technological and industrial transformation, prioritising sectors with strong leading and driving effects on the economy’s and society’s long-term development, the article said.

The China Small and Medium Enterprises Development Index stood at 89.0 in October, unchanged from both September and the same period last year, as domestic demand improved modestly amid nationwide campaigns to boost consumption, Securities Daily reported, citing data from the China Small and Medium Enterprises Association. Slight increases in sub-indices for overall operations, market conditions, and costs suggest a marginal improvement in business sentiment and a reduction in operational pressures, indicating early signs of stabilisation, the newspaper said, citing Fu Yifu, a special researcher at Jiangsu Su Merchants Bank.