{"id":1477436,"date":"2024-07-15T02:50:53","date_gmt":"2024-07-15T06:50:53","guid":{"rendered":"https:\/\/bugaluu.com\/news\/?p=1477436"},"modified":"2024-07-15T02:50:53","modified_gmt":"2024-07-15T06:50:53","slug":"chinese-regulators-intensify-efforts-to-tighten-control-over-financial-markets","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/chinese-regulators-intensify-efforts-to-tighten-control-over-financial-markets\/1477436\/","title":{"rendered":"Chinese Regulators Intensify Efforts To Tighten Control Over Financial Markets"},"content":{"rendered":"

Chinese Regulators Intensify Efforts To Tighten Control Over Financial Markets<\/span><\/p>\n

\n

By Charlie Zhu and Helen Sun, Bloomberg Markets Live reporters and strategists<\/em><\/p>\n

Three things we learned last week:<\/h3>\n

1.\u00a0Chinese regulators intensified efforts to tighten their control over financial markets.\u00a0<\/strong>The People\u2019s Bank of China effectively\u00a0narrowed\u00a0its interest rate corridor, placing a much higher floor on the costs banks pay to borrow overnight from each other.<\/p>\n

For longer-term bond yields, local branches of the National Financial Regulatory Administration asked some rural lenders to\u00a0shorten\u00a0the average duration of their bond holdings, <\/strong>joining the PBOC\u2019s recent efforts to prevent yields from falling further.<\/p>\n

For stocks, the securities watchdog took some of its most extreme\u00a0measures\u00a0yet to restrict short selling and quantitative trading strategies<\/strong>, providing a boost to some of the key indexes.<\/p>\n

<\/a><\/p>\n

While recent policies have their respective rationale, they could come at long-term or macro economic costs, according to Nomura Holdings Inc. Measures to control the yield curve might mitigate financial risks, but weak domestic demand need lower interest rates to stimulate borrowings, economists at Nomura wrote in a report last week.<\/p>\n

China\u2019s financial industry has already been reeling from slower growth and regulatory crackdowns. Ping An Bank Co. is\u00a0relocating\u00a0more than 100 staff based in Shanghai to its Shenzhen home base to cut costs, while PricewaterhouseCoopers LLP is\u00a0cutting\u00a0staff across its China operations amid an exodus of corporate clients.<\/p>\n

2. Domestic demand remains week despite efforts to stimulate consumption.\u00a0<\/strong>The\u00a0consumer price\u00a0growth hovered near zero for a fifth month, with the statistics bureau attributing it to promotions for the annual \u201c618\u201d shopping festival.<\/p>\n

\u201cThe deteriorating labor market will limit the potential for any quick and sustained recovery in consumption and hence inflation,\u201d <\/em>economists led by\u00a0Zhou Yingke\u00a0at Barclays Plc wrote in a report.<\/p>\n

<\/a><\/p>\n

Meanwhile,\u00a0credit expansion\u00a0also missed estimates. Exports in June jumped more than expected, highlighting the importance of external demand in underpinning China\u2019s economy. Together with weak imports, the country registered a\u00a0record\u00a0trade surplus.<\/p>\n

3.\u00a0Baidu\u2019s tests of unmanned auto driving have reminded people the future has arrived.\u00a0<\/strong>China\u2019s Internet search leader is\u00a0investing\u00a0in generative AI and autonomous driving to diversify its business. With Beijing\u00a0supporting\u00a0robotaxis in ride hailing and car rental fleets, Baidu\u2019s shares in Hong Kong posted the biggest weekly gain in more than one-and-a-half years.<\/em><\/strong><\/p>\n<\/div>\n

Tyler Durden<\/a><\/span>
\nSun, 07\/14\/2024 – 22:50<\/span><\/p>\n

\u200bhttps:\/\/www.zerohedge.com\/markets\/chinese-regulators-intensify-efforts-tighten-control-over-financial-markets<\/a>\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

Chinese Regulators Intensify Efforts To Tighten Control Over Financial Markets By Charlie Zhu and Helen Sun, Bloomberg Markets Live reporters and strategists Three things we…<\/p>\n","protected":false},"author":0,"featured_media":1477437,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1477436","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","wpcat-1-id"],"_links":{"self":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1477436","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/comments?post=1477436"}],"version-history":[{"count":0,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1477436\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media\/1477437"}],"wp:attachment":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media?parent=1477436"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/categories?post=1477436"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/tags?post=1477436"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}