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Showing posts with the label China's bond market

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Market Daily Report: Bursa Malaysia Ends Nearly Flat As Construction Stocks Attract Buying

 KUALA LUMPUR, Sept 8 (Bernama) -- Bursa Malaysia closed almost flat on Tuesday as buying interest rotated away from index heavyweights towards smaller-cap construction stocks, with sentiment affected by geopolitical uncertainty, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 0.39 of a point to 1,714.40 from Monday’s close of 1,714.79. The benchmark index opened 1.65 points lower at 1,713.14 and moved between 1,710.44 and 1,714.50 throughout the trading session. The broader market was almost evenly balanced, with decliners leading gainers 548 to 546, while 598 counters were unchanged, 1,107 were untraded and 25 were suspended. Turnover expanded to 4.13 billion units valued at RM3.14 billion from 3.60 billion units valued at RM2.45 billion on Monday.

China's PBOC Prepares to Sell Bonds Amid Market Rally

China’s central bank, the People’s Bank of China (PBOC), has announced its intention to sell government bonds in an effort to cool a record-breaking market rally. This move comes as part of broader efforts to stabilize the financial system and manage economic volatility. Key Takeaways Bond Sales: The PBOC is ready to sell government bonds to cool the market and stabilize the financial system. Market Reaction: China’s bond market has surged due to economic concerns and expected rate cuts, but the PBOC aims to prevent excessively low yields. Financial Stability: The PBOC’s intervention is designed to safeguard financial stability and manage economic risks. Policy Reforms: This move is part of broader monetary policy reforms aimed at enhancing liquidity management and supporting economic growth. Conclusion The PBOC's announcement to sell government bonds through agreements with major banks marks a significant step towards stabilizing China’s financial markets. As the country prepa...

China's onshore bond market getting used to defaults?

When I woke up today, I was caught astounded by an article on Bloomberg, relating to the China's bond market that is seeing higher default rates. Is this the new reality? If it is, I think there's every reasons to be cautious since China is the world's third largest bond market by value.  According to Bloomberg's article on  https://www.bloomberg.com/news/articles/2017-09-10/china-s-latest-bond-default-is-a-cautionary-tale-for-investors Wuyang Construction Group Co., a builder in the eastern province of Zhejiang, defaulted on two put-able notes totaling 1.36 billion yuan ($209 million) last month. Bondholders are now up in arms, claiming in an Aug. 23 filing posted on the Shanghai Stock Exchange’s website that the company didn’t disclose a raft of transgressions in sale documents for the bonds, which were sold in 2015. Three phone calls to Wuyang Constructions’ headquarters in Hangzhou went unanswered, and the company didn’t respond to a fax from Bloomber...