HALISTER1: INSIDE CHINA: Yuan Stable as Trump Criticizes Beijing FX Policy

INSIDE CHINA: Yuan Stable as Trump Criticizes Beijing FX Policy

(Bloomberg) -- Yuan stable with focus on Clinton-Trump debate in the U.S.; Trump says China devaluing yuan. Follow debate here.
  • Trump election win could slow China reforms and cause more yuan weakness, Standard Chartered analysts Ding Shuang and Eddie Cheung wrote in note yday
  • PBOC to maintain stable yuan basket ahead of week-long national holiday starting Oct. 1 to avoid self-reinforcing sharp depreciation of currency, Scotiabank Asia Gao Qi says
    • Central bank will remain resistant to broad monetary easing including RRR cuts; USD/CNY spot and fixing to stay below 6.70 this week
  • CNY unchanged at 6.6694 per dollar; CNH up 0.04% at 6.6806
    • PBOC strengthens yuan fixing 0.15% to 6.6646
  • Swift Global CNY payments fall to 1.86% in Aug. vs 1.90% in July
  • Aug. industrial profits +19.5% y/y vs +11.0% in July, biggest growth in 3 yrs
    • Related: Early indicators signal factory pickup, business optimism
  • China said to scrap 50% stock allocation requirement for QFII investors
  • Yuan’s long march to global currency faces obstacles after SDR inclusion
  • China junk bonds hottest in five years as authorities stem defaults
  • PBOC sells 80b yuan reverse repos
    • PBOC gauges demand of 28-, 14- and 7-day reverse repos before and after the Oct.1-7 holiday: trader
  • Yield of 2.74% govt bond due Aug 2026 little changed at 2.715%
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Ding Shuang (Standard Chartered PLC)
Eddie Cheung (Standard Chartered PLC)
Qi Gao (Bank of Nova Scotia Asia Ltd/Singapore)

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