Iron Ore Market Report January 2014
2014-02-19 16:26:49 【Print】
The following is a brief synopsis of the report. Your access is restricted as it is a subscription based service.
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1. Financial overview
1.1 Central Bank release market liquidity to RMB375 billion, future price of fund to be investigated
Central Bank made 21-day repo in open market with value of RMB120 billion and put RMB255 billion into the market previously on Tuesday to increase liquidity to RMB375 billion. Meanwhile, the Ministry of Finance would issue the tender of the second phase of fix-time deposits in commercial banks for 3-month national treasury management which valued RMB40 billion. Influenced by tight liquidity at year-end and a series of operation blank based on the de-leverage from Central Bank, the growth in price of fund before the Spring Festival advanced compared with that in previous years. The methods and input of fund from Central Bank to leverage or decrease liquidity were more flexible this year. The latest estimation from China Guangfa Bank indicated that the cash leakage for the Spring Festival will emerge after the rate payment this week, and will reach RMB60 billion to RMB1 trillion. For the long-term, liquidity could not be loosed hereafter, and whether the price of fund could be leveraged or not should be investigated further as specific operation scales and price of standing and convenient lending tool did not issued yet.
1.1 Central Bank release market liquidity to RMB375 billion, future price of fund to be investigated
Central Bank made 21-day repo in open market with value of RMB120 billion and put RMB255 billion into the market previously on Tuesday to increase liquidity to RMB375 billion. Meanwhile, the Ministry of Finance would issue the tender of the second phase of fix-time deposits in commercial banks for 3-month national treasury management which valued RMB40 billion. Influenced by tight liquidity at year-end and a series of operation blank based on the de-leverage from Central Bank, the growth in price of fund before the Spring Festival advanced compared with that in previous years. The methods and input of fund from Central Bank to leverage or decrease liquidity were more flexible this year. The latest estimation from China Guangfa Bank indicated that the cash leakage for the Spring Festival will emerge after the rate payment this week, and will reach RMB60 billion to RMB1 trillion. For the long-term, liquidity could not be loosed hereafter, and whether the price of fund could be leveraged or not should be investigated further as specific operation scales and price of standing and convenient lending tool did not issued yet.
