Latest news with #People's Bank of China
Bloomberg
2 days ago
- Business
- Bloomberg
Chinese Investors' FX Pile Hits $1 Trillion Amid Low Local Rates
Chinese corporates and households boosted their foreign-currency deposits last month to the highest in three years, as they shunned the yuan on bets domestic interest rates will remain low. Total foreign-currency deposits onshore rose to $1.02 trillion in June, the highest since March 2022, according to data from the People's Bank of China released Monday. The net increase in the first half of the year was $165.5 billion, the biggest jump in data going back to 2005.
Yahoo
2 days ago
- Business
- Yahoo
China's 4.2 Trillion Yuan Lending Spike: Stimulus Firepower or Economic Red Flag?
China's credit engine just kicked into high gearbut it's not the full story. Total social financing hit 4.2 trillion yuan ($585.7 billion) in June, coming in well above economists' expectations. Banks extended 2.2 trillion yuan in new loans, thanks to a seasonal lending push and a wave of government bond issuance. The People's Bank of China doubled down on its moderately loose stance, signaling it will maintain ample liquidity while monitoring the impact of existing measures. Officials say the goal is to stimulate demand and stabilize investor sentimentbut so far, private sector appetite still looks soft. Warning! GuruFocus has detected 3 Warning Sign with MRK. Take a closer look and cracks start to show. ING's Lynn Song noted that the credit bump was heavily propped up by government bond sales, not organic business borrowing. Property remains a key drag: new-home sales from China's top 100 developers dropped 23% in June year-over-year, steeper than May's 8.6% decline. While interbank borrowing costs have eased, and liquidity is flowing, the real economy hasn't caught uplending growth in the first half of 2025 still paints a picture of weak confidence and subdued risk-taking. So what does it mean for global investors? For companies tethered to Chinese demandlike Tesla (NASDAQ:TSLA)this rebound in headline credit may look promising, but the story underneath remains complex. Unless wage growth stabilizes and consumer confidence picks up, the credit tap alone may not be enough to drive a lasting recovery. Eyes now turn to whether China's next round of stimulus can translate into real-world spendingand whether the private sector is ready to step off the sidelines. This article first appeared on GuruFocus.
Yahoo
2 days ago
- Business
- Yahoo
China's 4.2 Trillion Yuan Lending Spike: Stimulus Firepower or Economic Red Flag?
China's credit engine just kicked into high gearbut it's not the full story. Total social financing hit 4.2 trillion yuan ($585.7 billion) in June, coming in well above economists' expectations. Banks extended 2.2 trillion yuan in new loans, thanks to a seasonal lending push and a wave of government bond issuance. The People's Bank of China doubled down on its moderately loose stance, signaling it will maintain ample liquidity while monitoring the impact of existing measures. Officials say the goal is to stimulate demand and stabilize investor sentimentbut so far, private sector appetite still looks soft. Warning! GuruFocus has detected 3 Warning Sign with MRK. Take a closer look and cracks start to show. ING's Lynn Song noted that the credit bump was heavily propped up by government bond sales, not organic business borrowing. Property remains a key drag: new-home sales from China's top 100 developers dropped 23% in June year-over-year, steeper than May's 8.6% decline. While interbank borrowing costs have eased, and liquidity is flowing, the real economy hasn't caught uplending growth in the first half of 2025 still paints a picture of weak confidence and subdued risk-taking. So what does it mean for global investors? For companies tethered to Chinese demandlike Tesla (NASDAQ:TSLA)this rebound in headline credit may look promising, but the story underneath remains complex. Unless wage growth stabilizes and consumer confidence picks up, the credit tap alone may not be enough to drive a lasting recovery. Eyes now turn to whether China's next round of stimulus can translate into real-world spendingand whether the private sector is ready to step off the sidelines. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
South China Morning Post
2 days ago
- Business
- South China Morning Post
China's monetary policy impact not yet unleashed, PBOC says with 5% GDP goal in mind
China's central bank intends to carefully calibrate the intensity and pace of its 'moderately loose' monetary policy implementation, taking steps to help the country's economy grow by Beijing's goal of around 5 per cent this year. Zou Lan, deputy governor of the People's Bank of China, said on Monday that the agency would closely monitor and evaluate the transmission and actual effects of previously implemented measures. And any future steps would be based on domestic and international financial and economic conditions, as well as the performance of financial markets. 'Monetary policy operates with a lag, and the full impact of current measures is still unfolding,' Zou said at a press conference. 'The PBOC will continue to implement a moderately accommodative monetary policy. 'This approach aims to more effectively stimulate domestic demand, stabilise public expectations, invigorate market vitality, and support the achievement of this year's economic and social development goals and tasks.' Zou Lan, deputy governor of the People's Bank of China, spoke at a press conference on Monday. Photo: Handout In May, the PBOC announced a raft of supportive measures to shore up China's economy and stabilise capital markets against the backdrop of trade negotiations with the United States. The reserve requirement ratio – the amount of cash that commercial banks must hold as reserves – was cut by 0.5 percentage points, and the seven-day reverse repo rate – a benchmark interest rate – was lowered by 0.1 percentage point to 1.4 per cent. The rate of housing accumulation fund loans and relending facilities rate were also slashed by 0.25 percentage points.
South China Morning Post
2 days ago
- Business
- South China Morning Post
China's monetary policy impact not yet unleashed, PBOC says with 5% GDP goal in mind
China's central bank intends to carefully calibrate the intensity and pace of its 'moderately loose' monetary policy implementation, taking steps to help the country's economy grow by Beijing's goal of around 5 per cent this year. Advertisement Zou Lan, deputy governor of the People's Bank of China, said on Monday that the agency would closely monitor and evaluate the transmission and actual effects of previously implemented measures. And any future steps would be based on domestic and international financial and economic conditions, as well as the performance of financial markets. 'Monetary policy operates with a lag, and the full impact of current measures is still unfolding,' Zou said at a press conference. 'The PBOC will continue to implement a moderately accommodative monetary policy. 'This approach aims to more effectively stimulate domestic demand, stabilise public expectations, invigorate market vitality, and support the achievement of this year's economic and social development goals and tasks.' Zou Lan, deputy governor of the People's Bank of China, spoke at a press conference on Monday. Photo: Handout In May, the PBOC announced a raft of supportive measures to shore up China's economy and stabilise capital markets against the backdrop of trade negotiations with the United States. The reserve requirement ratio – the amount of cash that commercial banks must hold as reserves – was cut by 0.5 percentage points, and the seven-day reverse repo rate – a benchmark interest rate – was lowered by 0.1 percentage point to 1.4 per cent. The rate of housing accumulation fund loans and relending facilities rate were also slashed by 0.25 percentage points.
