Banks' borrowing costs have been rising by a greater margin than lending rates due to three asymmetric interest rate hikes. But what does this mean for net-interest income?
Latest report
13 Jun 2013
Monetary Trends
Investor frenzy on new art stock exchange
After share prices on Tianjin's new "art stock exchange" ran off the scale, regulators behind the scheme were forced to step in.
24 March 2011
Tightening losing thrust
It is possible that China's tightening campaign is starting to ease as a clear economic slowdown emerges.
24 March 2011
PBoC steps up efforts to control liquidity
The People's Bank of China (PBoC), the central bank, has stepped up efforts to control liquidity on rising inflation by raising the reserve required ratio (RRR) by a further 50 basis points, effective March 25. The move was combined with a buyback of Rmb 220bn in central bank bills as well as a net withdrawal of Rmb 49bn through open market operations this week, reversing a trend of liquidity injections that has persisted for sixteen consecutive weeks.
18 March 2011
Congress presents picture of political poise despite pressures
So far, the image presented at the ongoing session of National People's Congress is of a competent government planning bold steps to meet its challenges.
10 March 2011
Reading the monetary policy runes
Sixteen consecutive weeks of net injections more than offset the liquidity frozen by three recent RRR hikes.
10 March 2011
PBoC injects Rmb 1,052bn over 15 consecutive weeks
The People's Bank of China (PBoC), the central bank, injected a net Rmb 76bn through open market operations this week, marking the fifteenth consecutive week of net injections totalling Rmb 1,052bn ($160m) since mid-November. Such an amount almost equals the liquidity it withdrew from the market through the three successive hikes in the required reserve ratio (RRR) since last December.
25 February 2011
PBoC not signaling imminent tightening
In spite of hikes in interest rates and bank reserve requirements, the central bank continues to inject liquidity.
24 February 2011
PBoC bills puzzle - a smoking gun for monetary policy?
The central bank's recent decision to suspend issuance of central bank bills shines a light onto the tough choices it faces in charting monetary policy.
27 January 2011
Inflation and growth trends diverge
"Apparently in opposition to the inflation story are several signs that key growth drivers were slowing in January compared to a robust December, according to China Confidential surveys."
27 January 2011
RENMINBI COMPASS
Renminbi Compass reflects key changes in the renminbi-denominated investment environment.
Providing research coverage on asset classes as diverse as chengtou bonds, dim sum bonds, real estate, trust products, underground banking, art and antiques, as well as its traditional equity fund research.
Renminbi Compass provides orientation for investors navigating the expanding universe of renminbi asset classes.
