China's Ministry of Commerce announces plan to foster new drivers of foreign trade, providing targeted support to offer stability and improve business confidence and expectation
China's announcement to support foreign trade is strategic in light of external pressures, particularly the EU's minimum pricing plan.
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PBoC cuts the one-year relending facility rate to 1.25% (prev. 1.50%), to increase tech innovation quotas by CNY 400bln to CNY 1.2tln
China's Ministry of Commerce announces plan to foster new drivers of foreign trade, providing targeted support to offer stability and improve business confidence and expectation
Chinese New Yuan Loans (Dec) 910B vs. Exp. 800B (Prev. 390B)
Chinese M2 Money Supply YoY (Dec) Y/Y 8.5% vs. Exp. 8% (Prev. 8%)
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On EU Minimum Pricing Plan
- China aims to counter the minimum pricing plan by diversifying markets and supporting firms exports capabilities.
- Adds that they do appreciate spirit of dialogue displayed by the EU.
On Canada
- Says it is willing to work with countries open to bilateral and regional trade and investment agreements
This could be seen as an attempt to stabilize its trade dynamics, improve business confidence, and potentially mitigate impacts on its currency and export sectors. The dialogue with the EU indicates a willingness to maintain diplomatic engagement, which may affect market sentiment towards risk assets in the region.
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