This daily digest focuses on market sentiment, new developments in China’s foreign exchange policy, changes in financial market regulations and Chinese-language economic coverage in order to keep DailyFX readers up-to-date on news typically covered only in Chinese-language sources.
–Â The PBOC said no intention to devalue the Yuan in the effort of promoting trade.
– The non-performing loan ratio of Chinese listed banks is expected to increase to 1.8% in 2Q’2016.
– China’s foreign debt dropped 3.6% in the first quarter of 2016; reducing the risks of insolvency.
PBOC News: China’s Central Bank.
- The PBOC issued an announcement on June 30th saying that ‘China has no intention to devalue the Yuan in the effort of promoting international trade. The global FX market saw high volatility of recent due to the Brexit decision and the Chinese Yuan has been devalued against the US Dollar to some extent. However, the Yuan has remained relatively stable to a basket of currencies.’ The PBOC’s commentary is a response to Yuan short-speculation of recent.
Hexun News:Â Chinese leading online media of financial news.
– The non-performing loan (NPL) ratio of listed commercial banks is expected to increase to 1.8% in the Second quarter of 2016 according to a report issued by Bank of China on June 30th. The growth in bank assets and liabilities in Q2 are expected to grow by 9.0% and 8.5% respectively. Also, the financial institution forecasted that the NPL ratio of listed banks will continue to rise in the third quarter, to 1.9%. In terms of economic forecasts, the bank said that China is still lacking momentum and thus they expect the growth rate in the second quarter to remain at 6.7%, the same as what was seen in the first quarter. The 2Q’2016 GDP print is scheduled to be released on July 14th (EDT).
Sina News: China’s most important online media source, similar to CNN in the US. They also own a Chinese version of Twitter, called Weibo, with around 200 million active usersmonthly.
