The maturation of 600 billion yuan (USD$89.9 billion) in special government bonds by the end of August could have a significant impact upon Chinese monetary policy and fiscal policy in the second half of 2017.
Nations participating in Xi Jinping’s much-vaunted Belt and Road initiative have seen a surge in Chinese mergers and acquisitions despite efforts by Beijing to stifle capital outflows.
The release of new data on the GDP of China’s provincial capitals for the first half of 2017 shows that Guangzhou remains the most affluent of the urban political centres, while Guiyang’s economy posted the most rapid growth.
Moody’s Investors Services says that the Fintech operations provided by China’s leading Internet companies serve to weaken their credit quality and ratings.
China has re-emerged as the world’s biggest holder of US government debt following five consecutive months of gains in its holdings of Treasuries.
Growth in China’s M2 money supply has sunk to another record-breaking low in July after succumbing to unprecedented weakness the previous month, with PBOC itself observing that its significance for the economy is on the wane.
The International Monetary Fund said that the Chinese central bank should be granted independent control over interest rates, as well as make monetary policy its exclusive focus.
The International Monetary Fund has said that the Chinese government’s focus on shoring up short-term growth could be putting it on a “dangerous” path of continued stimulus and credit expansion that will imperil the economy’s longer term prospects.
The latest data from the Shanghai and Shenzhen Stock Exchanges indicate that a total of 297 companies have raised in excess of 149.3 billion yuan (USD$22.36 billion) thus far this year.
The People’s Bank of China has just taken its net liquidity injections via medium-term lending facilities a four month high following the release of lacklustre economic data for last month.