EM ASIA CREDIT: Xiaomi (XIAOMI): December Auto sales strong
(Baa1/BBBpos/BBB+)
"Xiaomi Auto Delivers 50K+ Cars Last Dec, Launches New Yr Zero-Interest Car Purchase Policy" - BBG
December EV sales ends on a strong note, neutral for spreads.
Xiaomi reported December auto deliveries of over 50,000 units, well ahead of November sales (40k). The key focus going forward will be margin compression in 2026 as volumes are ramped up in an increasingly competitive environment.
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CHINA: Central Bank Withdraws CNY134bn via OMO
The PBOC withdrew liquidity again today ahead of sizeable maturities in the days ahead. Money market / repo rates have largely moderated from prior highs and with the equity market volatility muted, the liquidity need is seemingly reduced.
- The PBOC issued CNY79.3bn of 7-day reverse repo at 1.4% during this morning's operations.
- Today's maturities CNY213.3bn.
- Net liquidity withdraws CNY134bn.
- The PBOC monitors and maintains liquidity in the interbank system through the issuance of reverse repo.
- The CFETS Pledged Repo Deposit Institutions 7 Day Weighted is at 1.40%, from prior close of 1.44%.
- The China overnight interbank repo rate is at 1.28%, from the prior close of 1.28%.
- The China 7-day interbank repo rate is at 1.41%, from the prior close of 1.48%.
MNI: CHINA PBOC CONDUCTS CNY79.3 BLN VIA 7-DAY REVERSE REPO WEDS
- CHINA PBOC CONDUCTS CNY79.3 BLN VIA 7-DAY REVERSE REPO WEDS
CNH: USD/CNY Fixing Error Positive Trend Continues, USD/CNH Edges Lower
The USD/CNY fix printed at 7.0754, versus a BBG market consensus of 7.0665. This leaves the fixing error holding positive, today at +89pips (from +49pips yesterday), which sees this metric starting to inch up. This continues to point to a steady outlook for the yuan. Spot USD/CNH is a little lower post the fixing, last around 7.0624/629. Highs from late last week were just above 7.0800, in terms of a potential upside focus point.
