On December 13, it is reported that the Federal Reserve will announce its latest interest rate decision and the latest quarterly ** at 3:00 a.m. Beijing time on Thursday, while Fed Chairman Jerome Powell will hold a press conference at 3:30. For Fed policymakers who have been battling runaway inflation for the past two years, this week's meeting could mark a major turning point.
It is almost impossible for the Fed to vote in favour of raising interest rates, but more important is how the Federal Open Market Committee (FOMC) will articulate a plan to move policy away from aggressive rate hikes to the next step. The move to cut rates, while likely expressed in a subtle way, would represent a major U-turn for the Fed after 11 rate hikes.
In addition to announcing interest rate decisions, the Fed will also update its quarterly** on economic growth, inflation, and unemployment. Fed Chair Jerome Powell will also hold a press conference after the meeting, as usual, where he will likely discuss strategies to ease policy in the face of slowing inflation, or he will likely continue to be hawkish, with the outcome of the latter likely to unsettle markets.
Currently, the target for the federal interest rate is at 525%-5.5%, 5 to be exact33%。This is despite the fact that the Consumer Index** (CPI) report released on Tuesday showed that the core CPI after deducting food and energy was converted to an annualized rate of 4% in November, followed by core PCE inflation of 35%, which makes the real inflation rate about 18%。
Hot news. According to the People's Bank of China, at the end of November, the balance of broad money (m2) was 2912 trillion yuan, a year-on-year increase of 10%, and the growth rate was 03 and 24 percentage points. Narrow money (m1) balance 6759 trillion yuan, a year-on-year increase of 13%, the growth rate was 0.0 lower than the end of last month and the same period last year, respectively6 and 33 percentage points. Currency in circulation (m0) balance 1102 trillion yuan, a year-on-year increase of 104%。The net cash injection in the month was 166 billion yuan.
According to the surging news, Ping An Bank held a symposium on real estate enterprises on December 12, at which executives from 12 real estate companies, including Vanke, Greentown, Longfor, Binjiang, Midea, Excellence, Dahua, Weixing, Galaxy, Kingkey, Zhongtian Meimei, Wanhua, and members of Ping An Bank's team and heads of various departments, discussed important topics such as the financing needs of real estate enterprises, deepening bank-enterprise cooperation, and jointly promoting the stable and healthy development of the real estate market.
Oceanwide Holdings (000046.)SZ) announced that Wuhan Company, a holding subsidiary of the company, received the "Civil Judgment" served by the Wuhan Intermediate People's Court, and Wuhan Company was sentenced to return about 8$600 million and interest payments.
Wanda Commercial Releases About Dalwan 725 01 29 24 Announcement of the results of the meeting for the extension of the consent solicitation. The Special Resolution was formally adopted at the meeting held on December 13, 2023, and the consent fee will be paid on or about December 18, 2023.
Daily release summary.
Today, there are no issuances in the primary market.
Daily Rating Summary.
Today, a total of 1 company ratings have been updated by the agency:
Data**: Duration Finance.
Market movements. As of Dec. 12, China's two-year government bond yield was 244%, and the yield on China's 10-year government bonds is 264%。
As of 5pm today, the US two-year Treasury yield**2bp to 4730%;The yield on the 10-year US Treasury note**3bp to 4200%。
U.S.-China 10-year Treasury spread:
On December 13, the top 10 gainers and losers of Chinese dollar bonds are as follows:
Country Garden (02007.)HK) announced that the company's executive directors Yang Huiyan, Mo Bin, Yang Ziying and non-executive director Chen Chong took the initiative to request a reduction in remuneration, and have signed a supplementary agreement and supplementary appointment letter with the company on November 1, 2023. According to the announcement, Yang Huiyan, Mo Bin, Yang Ziying and Chen Chong have adjusted their annual salaries of RMB 120,000, and their annual salaries before the adjustment are RMB 370,000, 3 million, 2 million and 370,000 yuan respectively. Related USD Bonds:
Data**: Duration Finance.
Wanda Films (002739.)SZ) announced that the company's indirect controlling shareholder Wanda Culture Group and its wholly-owned subsidiary Beijing Hengrun, and the company's actual controller Mr. Wang Jianlin signed an equity transfer agreement with Ruyi Investment, intending to transfer their total 51% equity interest in Wanda Investment to Ruyi Investment, with a total transfer price of RMB 215.5 billion yuan. Related USD Bonds:
Data**: Duration Finance.
Macro news. According to data from the People's Bank of China, preliminary statistics show that the cumulative increase in the scale of social financing in the first eleven months of 2023 is 3365 trillion yuan, 2 more than the same period last year79 trillion yuan. The increase in the scale of social financing in November was 245 trillion yuan, 455.6 billion yuan more than the same period last year. Among them, RMB loans to the real economy increased by 111 trillion yuan, a year-on-year decrease of 44.7 billion yuan;Foreign currency loans to the real economy decreased by 35.7 billion yuan, a year-on-year decrease of 29.1 billion yuanEntrusted loans decreased by 38.6 billion yuan, a year-on-year decrease of 29.8 billion yuanTrust loans increased by 19.7 billion yuan, an increase of 56.2 billion yuan year-on-year;Undiscounted bank acceptance bills increased by 20.3 billion yuan, an increase of 1.2 billion yuan year-on-yearThe net financing of corporate bonds was 133 billion yuan, an increase of 72.6 billion yuan year-on-year**Net Bond Financing115 trillion yuan, an increase of 499.2 billion yuan year-on-year;The domestic financing of non-financial enterprises was 35.9 billion yuan, a year-on-year decrease of 42.9 billion yuan.
According to data from the People's Bank of China, preliminary statistics show that the stock of social financing scale at the end of November 2023 was 37639 trillion yuan, a year-on-year increase of 94%。Among them, the balance of RMB loans issued to the real economy was 23437 trillion yuan, a year-on-year increase of 107%;The balance of foreign currency loans issued to the real economy is equivalent to RMB 172 trillion yuan, down 16 percent year-on-year7%;The balance of the entrusted loan is 1127 trillion yuan, a year-on-year increase of 02%;The balance of the trust loan is 387 trillion yuan, a year-on-year increase of 12%;The balance of the undiscounted banker's acceptance bill is 267 trillion yuan, down 17%;The balance of corporate bonds was 3148 trillion yuan, down 04%;*The bond balance is 6886 trillion yuan, a year-on-year increase of 149%;The domestic** balance of non-financial enterprises was 1138 trillion yuan, a year-on-year increase of 84%
According to CCTV News, at the 2023-2024 China Economic Annual Conference held at the China Center for International Economic Exchanges, Dong Jianguo, Vice Minister of Housing and Urban-Rural Development, said that in view of the risk of debt default of some real estate enterprises, the financial management department has issued a series of support policies, but the risk clearance still needs a process。
The People's Bank of China issued an announcement that in order to maintain reasonable and sufficient liquidity in the banking system, on December 13, 2023, the People's Bank of China launched a 7-day reverse repurchase operation of 265 billion yuan in the form of interest rate bidding, and the winning interest rate was 180%。Today, 240 billion yuan of 7-day reverse repurchase expires, achieving a net investment of 25 billion yuan.