Coke Market Report February 2012
2012-03-29 16:45:30 【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 to decrease RRR for the third or fourth time. Central Bank announced in middle February to decrease RMB deposit reserve for financial institutions by 0.5% since February 24. There would be around RMB400 billion released calculating at RMB80,130 billion of outstanding obligation. Central Bank was expected to decrease the figure for another three or four times in order to guarantee 14% of M2 growth rate as capital inflow continued to shrink and credit expansion scale was controlled less than RMB800 million. Hence, excess reserve ratio could recover for the whole banking, which offered sufficient capital between banks and drove financing vehicles for non-bank lending to increase further. Deposit reserve was likely to be adjusted more frequently if situation of capital flow worsened and M2 continued to shrink.
1.1 Central Bank to decrease RRR for the third or fourth time. Central Bank announced in middle February to decrease RMB deposit reserve for financial institutions by 0.5% since February 24. There would be around RMB400 billion released calculating at RMB80,130 billion of outstanding obligation. Central Bank was expected to decrease the figure for another three or four times in order to guarantee 14% of M2 growth rate as capital inflow continued to shrink and credit expansion scale was controlled less than RMB800 million. Hence, excess reserve ratio could recover for the whole banking, which offered sufficient capital between banks and drove financing vehicles for non-bank lending to increase further. Deposit reserve was likely to be adjusted more frequently if situation of capital flow worsened and M2 continued to shrink.
