China’s push to improve the finances of cash-strapped localities will mean they have less money to spend on big infrastructure projects because for the first time funds from the sale of new local government special bonds are being used to repay old loans. In March, Beijing said local governments could sell 3.9 trillion yuan ($539…
China has effectively banned domestic investors from buying offshore yuan bonds issued by local government financing vehicles through its trading link with Hong Kong, according to people familiar with the matter, in the latest move to contain risks from the debt-laden sector. The People’s Bank of China has asked the country’s brokerages and banks to…
China’s economy showed encouraging signs as retail sales grew at the strongest pace in eight months, indicating Beijing’s latest round of stimulus has boosted some key sectors. Retail sales increased 4.8% in October from a year earlier, the National Bureau of Statistics said Friday, up from September’s gain of 3.2%. The reading exceeded the most…
Supply Lines is a daily newsletter that tracks global trade. Sign up here. China wields new powers as it confronts the prospect of another trade conflict with the US, expanding its retaliatory reach in recent years to include tools capable of wreaking havoc on global commerce and finance. Source link
China is cutting taxes for home purchases, as the government tries to put a floor under falling prices and sustain an improvement in housing transactions. The nation cut home purchase deed taxes to 1% for first- and second-house buyers of flats of 140 square meters and below, from a current level of as much as…
Worries around overheating stocks took over the narrative on Tuesday, underscoring the sense of froth in risky parts of the market that had surged after President-elect Donald Trump’s decisive election victory. A number of trades that took flight since last week faltered before key US inflation data to be released Wednesday. Small-cap stocks — which…
Traders are loading up on bets for further losses in the Treasury market in anticipation that Donald Trump’s pledged policies will rekindle inflation and keep US interest rates high. Open interest, an indication of futures traders’ positioning in the bond market, rose for a fourth-consecutive session in the two-year note contract, data released on Tuesday…
Treasury 10-year yields may climb to 5% or higher as the US government boosts its debt supply to fund a multi-trillion dollar deficit, according to Franklin Templeton. “Getting to 4.5% to 5% on the 10-year, that’s reasonable,” Sonal Desai, chief investment officer of Franklin Templeton Fixed Income, said in an interview in Tokyo. Should investors…
China started marketing dollar bonds in Saudi Arabia, marking the country’s first debt sale in the US currency since 2021. It’s offering the three-year and five-year securities with initial price guidance of about 25 basis points and 30 basis points over the respective US Treasury yields, according to people familiar with the matter. The Ministry…
China is planning to cut taxes for home purchases as the government dials up fiscal support to revive a moribund housing market, according to people familiar with the matter. Regulators are working on a proposal that would allow mega cities including Shanghai and Beijing to cut the deed tax for buyers to as low as…