RMB Internationalization Briefing on November 7, 2016

Core Tip: The RMB internationalization briefing on November 7, 2016 includes: China's foreign exchange reserves in October hit the biggest decline in January; the central bank's open market continued its net withdrawal; the RMB exchange rate contracted down, the middle price fell 211 basis points; November On the 4th, the CFETS RMB exchange rate index fell for three consecutive days.

Beijing (CNFIN.COM / XINHUA08.COM) --

-- RMB News --

Ma Jun: "One Belt, One Road": Opportunities, Risks and the Role of Hong Kong

Ma Jun, chief economist of the Research Bureau of the People's Bank of China, pointed out in his speech at the China Innovation Forum in Dameisha, Shenzhen on November 4 that most of the funds in the Belt and Road need to be raised from the international market, so the Hong Kong capital market should play an important role. effect. Hong Kong can provide a variety of risk management talents, tools and tools for the "One Belt, One Road" project. 【detailed】

The funds face back to the loose central bank's open market and continue to return to the net

On Monday (November 7), the central bank conducted a 20-billion-day reverse repurchase operation in the open market. The winning bid rate was flat at 2.25%, and the net return was 140 billion yuan in a single day, which was the fourth consecutive day of net withdrawal. The central bank continued to carry out a net withdrawal operation, using actual actions to show that it does not want liquidity to be too loose. 【detailed】

Regulatory layer pushes overseas green channel for foreign exchange listing

The SAFE has innovated foreign exchange management methods within the existing institutional framework, opening up a green channel for domestic companies to list in Hong Kong. China Merchants Securities and Postal Savings Bank, which recently listed in Hong Kong, have successfully introduced cornerstone investors using Green Channel. 【detailed】

--RMB data--

China's foreign exchange reserves in October hit the biggest decline in January, shrinking for four consecutive months

As of the end of October 2016, the balance of China's foreign exchange reserves fell to a minimum level of 3.12 trillion US dollars since March 2011, a decrease of 45.7 billion US dollars from the previous month, which was the fourth consecutive month of decline, and the largest decline since January this year. 【detailed】

--RMB Market --

The RMB exchange rate shrinks and the market waits for the mood to heat up

As the US dollar index stabilized and the RMB exchange rate returned to 6.77, the market closely watched the progress of the US election. The renminbi against the US dollar has approached the bottom of the 6.80 expected by all parties. The market wait-and-see mood has warmed up and the trading volume has shrunk. 【detailed】

On the 7th, the central parity of the RMB against the US dollar fell by 211 basis points to 6.7725.

On November 7, the central parity of the RMB against the US dollar was reported at 6.7725, a sharp drop of 211 basis points from the previous trading day, the biggest one-day drop in more than two weeks. Compared with the closing price of RMB 6.7591 against the US dollar at 16:30 Beijing time on November 4th, the price was lowered by 134 basis points. 【detailed】

CFETS RMB exchange rate index fell for three consecutive weeks in the week of November 4

On November 4th, the CFETS RMB exchange rate index was 93.78, down by 0.37% from the previous week. It was the third consecutive week of decline, depreciating by 6.22% from the end of 2014 and depreciating by 7.10% since 2016. 【detailed】

Interbank repo rate fell, liquidity is temporarily loose but expected to tighten

On the 7th, the main repo rate in the interbank market was further lowered, and the funds continued to be loose. The overnight pledged repo is now reduced, showing short-term liquidity. However, long-term capital prices and interbank deposit rates have both risen, reflecting the market's poor expectations for inter-annual liquidity. Under the continuous net return of the open market, the fabric of the fund loosening bureau is difficult to sustain. 【detailed】