Offshore RMB recovered the 7.30 level against the USD, rising over 600 points. China's real loan balance reached 230.24 trillion yuan, growing 10.9% year-on-year. The PBOC vowed to maintain stability in the forex market and prevent speculative activities. Guangzhou became the first tier-1 city to break the LPR floor for first-home mortgages.
China's foreign exchange reserves decreased by 442 billion USD in August, totaling 31601 billion USD. Guangzhou became the first major city to break the LPR mortgage floor, offering lower interest rates for first-time homebuyers.
China's foreign exchange reserves fell to $31,601 billion in August, down 1.38% from July. Meanwhile, Shanghai introduced a new policy to support urban renewal projects using housing provident funds, and the People's Bank of China announced measures to reduce mortgage rates for first-time homebuyers.
The special group promoting stock market liquidity in China will meet to discuss easing listing thresholds. Meanwhile, the global manufacturing PMI has slightly recovered from August lows, indicating a weak economic recovery. Germany’s factory orders dropped significantly in Q3, and the Philippines is prepared to tighten monetary policy if needed.
China tightens the pace of IPOs, adjusts housing policies to support first-time homebuyers, and raises personal income tax deduction standards for childcare and elderly care. Meanwhile, the Eurozone faces inflation challenges, and the ECB is caught in a dilemma over interest rate hikes.
Wuxi has implemented a new policy where residents without a complete housing unit in the city will be eligible for first-home loan rates regardless of previous loans. Additionally, the RMB has become the fifth largest reserve and payment currency globally, marking significant progress in its internationalization.
China's industrial policies are advancing with new measures to boost economic recovery. The manufacturing sector shows promising prospects, while the growth of the services sector has slowed down. In international news, the global trade finance gap has reached a record high of $2.5 trillion, and the RBA kept interest rates unchanged due to declining inflation.
In August, local government bond issuance hit a new high of about 1.3 trillion yuan, driven by accelerated special bond issuance. The People's Bank of China, Beijing branch, is studying an LPR reform plan for existing housing loans, to be announced by September 25th.
China's commodity index increased to 103.6 in September, marking the highest level since August 2020. Meanwhile, OPEC predicts global oil demand will reach 109 million barrels per day by 2027, reflecting growing economic activity and energy consumption.
