Coke Market Report January 2014
2014-02-17 14:08:16 【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 People’s Bank of China releases RMB375 billion of liquidity this month, future fund price unclear
People’s Bank of China issued 21-day reverse repo in open market, totaling RMB210 billion. It issued RMB255 billion on Tuesday, and total market liquidity reached RMB375 billion. Meanwhile, the Ministry of Finance will call for a tender of the second phase of three-month national treasury management commercial bank fixed term deposit, totaling RMB40 billion. Uptrend of fund price before the Spring Festival occurred earlier than past years due to tight liquidity and a series of no-operation on the basis of de-leveraging from People’s bank of China before the festival. People’s Bank of China stabilized the liquidity flexibly in terms of both means and issue volume. The latest report from Guangdong Development Bank estimated that cash leakage will occur during the festival with a preliminary estimate of RMB600-1000 billion after rate payment this week. Analysis from UBS highlighted that the liquidity will not really loose in the long term, and specific operation mode, scale and price of standing lending facility was not announced, so it is still unclear if fund price in secondary market will be stabilized.
1.1 People’s Bank of China releases RMB375 billion of liquidity this month, future fund price unclear
People’s Bank of China issued 21-day reverse repo in open market, totaling RMB210 billion. It issued RMB255 billion on Tuesday, and total market liquidity reached RMB375 billion. Meanwhile, the Ministry of Finance will call for a tender of the second phase of three-month national treasury management commercial bank fixed term deposit, totaling RMB40 billion. Uptrend of fund price before the Spring Festival occurred earlier than past years due to tight liquidity and a series of no-operation on the basis of de-leveraging from People’s bank of China before the festival. People’s Bank of China stabilized the liquidity flexibly in terms of both means and issue volume. The latest report from Guangdong Development Bank estimated that cash leakage will occur during the festival with a preliminary estimate of RMB600-1000 billion after rate payment this week. Analysis from UBS highlighted that the liquidity will not really loose in the long term, and specific operation mode, scale and price of standing lending facility was not announced, so it is still unclear if fund price in secondary market will be stabilized.
