Initiatives announced since May are “effective” and “ample” in stabilizing growth, according to an unsigned front-page commentary in Financial News, a newspaper controlled by the central bank. Expansion slowed in each of the last seven quarters and the government accelerated approvals of infrastructure projects to spur spending at home as Europe’s debt crisis hurts exports. China’s central economic work meeting, at which officials may set the 2013 growth goal, could be held this month, China Business New reported Nov. 26.
“For now, the sentiment is very positive for the recovery,” said Wee-Khoon Chong, a Hong Kong-based strategist at Societe Generale SA. “The economic meeting scheduled this month is likely to be the main theme for a few weeks.”
The one-year interest-rate swap, the fixed cost to receive the seven-day repo rate, rose one basis point to 3.36 percent as of 4:30 p.m. in Shanghai, according to data compiled by Bloomberg.
Exports may grow by 8 to 10 percent next year, Ba Shusong, who works for the State Council’s development research center, was quoted as saying in the Economic Information Daily today. The Shanghai Composite Index of shares was 0.1 percent lower today following a 2.9 percent jump yesterday.
The People’s Bank of China auctioned 45 billion yuan ($7.2 billion) of seven-day reverse-repurchase agreements at a yield of 3.35 percent today, according to a trader at a primary dealer required to bid at the auctions. The central bank also conducted 72 billion yuan of 28-day reverse repos at 3.6 percent, the trader said.
The seven-day repurchase rate, a gauge of interbank funding availability, increased nine basis points, or 0.09 percentage point, to 2.89 percent in Shanghai, according to a weighted average compiled by the National Interbank Funding Center.
To contact the reporter on this story: Kyoungwha Kim in Singapore at firstname.lastname@example.org
To contact the editor responsible for this story: James Regan at email@example.com