China orders more lending to entrepreneurs amid trade spat

China pumps USD 109 billion into economy as trade war bites on growth

Spot yuan was on track for its lowest close in seven weeks against the USA dollar, as expectations of more easing measures by China, plus surging USA bond yields, put pressure on the Chinese currency. "Now, the Chinese economy is under even tougher pressure amid escalating trade friction", it said.

"There's an acute shortage of confidence in the market".

"Foreign investors turned bearish, unlike their previous optimistic buying of Chinese A-shares", says Mr Steven Leung, executive director at UOB Kay Hian (Hong Kong). The US is battling an exchange war with China which debilitates the viewpoint for Chinese assembling and fares. The Shanghai Composite lost 3.7% of its value, while the Shenzhen Composite was down just over 4% at the close of the day's trading. The blue-chip CSI300 index, which also fell briefly into negative territory, was up 0.3 per cent. The gauges followed Hong Kong's Hang Seng index, which remained open during the holiday and slid 4.38 percent over its course.

The pan-European FTSEurofirst 300 index of leading regional shares closed down 1.14 percent, its biggest one-day drop in a month, while MSCI's gauge of stocks across the globe shed 0.31 percent.

On Sunday, the People's Bank of China announced a 100-basis-point cut to lenders' reserve requirement ratio (RRR), stepping up efforts to pump more liquidity into markets and support the domestic economy.

"An RRR cut is not enough to counter the impact of the trade war", Shanghai Wisdom Investment General Manager David Dai told Reuters. "And today's fall is not surprising after weak performance in external markets during the holiday".

Harry Kane, Cristiano Ronaldo and Eden Hazard named on Ballon d'Or shortlist
Griezmann, who was ignored for FIFA's The Best awards, is among the top 30 for the Ballon d'Or nominees . The list contained most of the usual suspects, however, we did see a few surprising names on the list.

Telecoms equipment maker ZTE led tech shares downward on Monday, falling 8.14% to 16.81 yuan after a Bloomberg News report last week said China had inserted special microchips into computer goods exported to the U.S. to steal technology secrets.

"China sectors such as energy, IT and industrials will be most impacted based on our analysis, while sectors such as real estate, insurance, diversified financials, telecom and utilities generate virtually no revenue from the USA", a team led by Pedro Martins said in a note.

The PBOC will continuously implement a prudent and neutral monetary policy, refrain from using a deluge of stimulus and focus on targeted adjustment to maintain sound and sufficient liquidity, facilitate rational growth in monetary credit and social financing and create a proper monetary and financial environment for the country to pursue high-quality economic development and advance the supply-side structural reform, it said. "Liquidity is not the issue".

Analysts say the yuan's decline has been driven mostly by China's slowing economic growth and the divergence between USA and Chinese interest rates.

On Monday, the spread between Chinese and USA 10-year Treasury bonds was 58.4 basis points, compared with 150 basis points at the end of 2017. "The narrowing interest rate differentials between China and the United States will exert more downward pressure on the RMB", wrote Nathan Chow, strategist at DBS Group Research. "Losses in the spot yuan rate reflected a weaker midpoint". China's yuan was weaker at 6.8979 per US dollar at 0333 GMT, compared with a previous onshore close of 6.8725 per dollar. The yuan weakened as much as 0.5 per cent.

Reflecting expectations of further yuan weakening, the one-year non-deliverable yuan futures in Hong Kong fell to the lowest level in 15 months, to 7.0095 against the dollar.

Related News:



Most liked

Eyeing the Canadian connection, Hurricane Michael races past
Kemp said the bill totaled over $800 when she and her family fled Hurricane Irma's uncertain path past year . As of 06.00 am, Michael was about 290 kilometers south of Panama City and moving north at 19 kph.

PlayStation announce when you'll be able to change your PSN ID
Some PlayStation 4 games released before April 1, 2018 and all published after that date will support the feature. Here's another kicker and the key to why PSN ID changes have been such a struggle for PlayStation to implement.

Even Lara couldn't win test series in India: Jason Holder
Deciding to bowl Kuldeep Yadav in the second test despite Ashwin running riot is a positive sign in Kohli in the captain . The spectre of the follow-on loomed large when West Indies resumed day three on a precarious 94 for six.

Google to shut down Google
Others include limiting what sorts of data that can be collected per transaction when users share their Gmail accounts and phone numbers.

Youth vulnerable to mental stress, illnesses, says expert
Mental health like physical health embodies a healthy lifestyle. "Central to this campaign is the concept of empowerment". A powerful human ripple effect occurs which means we are better able to serve our broader network.

Suspect In Bulgarian Journalist's Rape, Murder Arrested In Germany
At the Ruse vigil, telecoms technician Venelin Rumenov, 27, told AFP: "I don't think that she had been threatened or anything". Ms Marinova was a director of TVN, a small TV station, and a TV presenter for two investigative programmes.

The Rock & Roll Hall Of Fame Have Revealed 2019's Nominees
To be eligible, of course, the nominees' first single or album must have been released before (and including) 1993. The ceremony is set to take place on March 29, 2019 in Brooklyn, New York at the Barclays Center.

Wozniacki wins 2nd China Open title, Del Potro stumbles
Sevastova is set to move up to 12th in the new world rankings on Monday despite missing out on her third title of the season. In the set, she steamrolled to take a double-break 4-1 lead and held to it until the score was 4-3.

Ousted Guardians of the Galaxy director switches camps, tied to new DC Comics film
Since Gunn's firing, the status of Guardians of the Galaxy Vol. 3 remains unclear. James Gunn has landed on his feet after being sacked by Marvel .

Taylor Swift sets new American Music Award record, urges people to vote
Some of music's top stars, including Drake , Ed Sheeran , Beyoncé, Ariana Grande, Rihanna and Kanye West, were absent on Tuesday. Her awards also led her to become the most decorated female artist at the AMAs, with 22 trophies.

Microsoft says it fixed a Windows 10 update bug that deleted folders
If there are still files in the "Documents" folder then you're not affected by the issue, according to another tweet from Sarkar. It notes that Microsoft will provide a notice when the Windows 10 version 1809 rollout resumes.

Ramaphosa to announce fate of Nene on Tuesday
President Cyril Ramaphosa has yet to respond to mounting calls to fire Finance Minister Nhlanhla Nene. The rand fell more than one percent on the report.

Strengthening hurricane closes in on Florida Panhandle
Forecasters expect Hurricane Michael to grow stronger still as it crosses the Gulf of Mexico on its way to Florida's Panhandle. Scott also told Florida hospitals and nursing homes to do all they can to assure the safety of the elderly and infirm.

Taylor Swift statement inspires voter registration surge
The White House this week confirmed President Trump and adviser Jared Kushner would have lunch with West on Thursday. By comparison, the group said 56,669 new voters registered in August and 190,178 registered in September.

Brett Kavanaugh takes his place on bench
Kavanaugh was sworn in Saturday evening in a private ceremony as protesters chanted outside the court building. Kavanaugh already has been at the Supreme Court preparing for his first day on the bench Tuesday.