Chinese company debt twice the size of Ireland’s economy will come due in 2014, spurring concern the nation is on the cusp of its first corporate bond default.
China sold 50-year bonds at a record high yield as banks prepare for what they describe as a new era of higher borrowing costs after a government policy overhaul.
China needs to follow a managed float of its exchange rate to aid restructuring, said Hu Xiaolian , deputy governor of the People’s Bank of China.
China said it will allow trading of certificates of deposit between banks, another step toward loosening state control over interest rates.
The following are the day's top business stories:
China will probably wait at least two years before requiring banks to pay market rates on deposits as officials seek to avoid disrupting the banking system while the economy is slowing.
Yuan forwards advanced for a second day on speculation reports on factory output and trade will add to evidence that a slowdown in the world’s second-largest economy is bottoming out.
China’s current daily yuan-dollar trading band is “appropriate,” Hu Xiaolian, a deputy governor at the People’s Bank of China, said in an interview with Century Weekly magazine.
Talks between the People’s Bank of China and the Hong Kong Monetary Authority to allow non- residents of the city to open yuan-denominated bank accounts are making progress, PBOC Deputy Governor Hu Xiaolian said.
Asian currencies rose for a second straight day as the yuan gained on speculation China will raise borrowing costs and a rebound in consumer confidence in South Korea boosted sentiment.