AGL 39.51 Decreased By ▼ -0.49 (-1.23%)
AIRLINK 128.48 Decreased By ▼ -0.58 (-0.45%)
BOP 6.86 Increased By ▲ 0.11 (1.63%)
CNERGY 4.71 Increased By ▲ 0.22 (4.9%)
DCL 8.46 Decreased By ▼ -0.09 (-1.05%)
DFML 41.09 Increased By ▲ 0.27 (0.66%)
DGKC 82.24 Increased By ▲ 1.28 (1.58%)
FCCL 33.15 Increased By ▲ 0.38 (1.16%)
FFBL 74.05 Decreased By ▼ -0.38 (-0.51%)
FFL 11.93 Increased By ▲ 0.19 (1.62%)
HUBC 109.50 Decreased By ▼ -0.08 (-0.07%)
HUMNL 14.12 Increased By ▲ 0.37 (2.69%)
KEL 5.23 Decreased By ▼ -0.08 (-1.51%)
KOSM 7.47 Decreased By ▼ -0.25 (-3.24%)
MLCF 39.25 Increased By ▲ 0.65 (1.68%)
NBP 64.00 Increased By ▲ 0.49 (0.77%)
OGDC 193.23 Decreased By ▼ -1.46 (-0.75%)
PAEL 25.52 Decreased By ▼ -0.19 (-0.74%)
PIBTL 7.30 Decreased By ▼ -0.09 (-1.22%)
PPL 153.02 Decreased By ▼ -2.43 (-1.56%)
PRL 25.50 Decreased By ▼ -0.29 (-1.12%)
PTC 17.58 Increased By ▲ 0.08 (0.46%)
SEARL 81.52 Increased By ▲ 2.87 (3.65%)
TELE 7.68 Decreased By ▼ -0.18 (-2.29%)
TOMCL 33.48 Decreased By ▼ -0.25 (-0.74%)
TPLP 8.44 Increased By ▲ 0.04 (0.48%)
TREET 16.42 Increased By ▲ 0.15 (0.92%)
TRG 56.76 Decreased By ▼ -1.46 (-2.51%)
UNITY 27.50 Increased By ▲ 0.01 (0.04%)
WTL 1.35 Decreased By ▼ -0.04 (-2.88%)
BR100 10,512 Increased By 67.1 (0.64%)
BR30 31,125 Decreased By -64 (-0.21%)
KSE100 98,265 Increased By 466.7 (0.48%)
KSE30 30,683 Increased By 202.8 (0.67%)

Foreign holdings of Chinese bonds reached a new record in January as hopes for a China-US trade deal and indications of a pause in the US Federal Reserve's tightening cycle helped to bolster the yuan. Offshore investors held 1.75 trillion yuan ($259.06 billion) of Chinese onshore bonds at the end of January, according to Reuters' calculations based on data from Shanghai Clearing House and the China Central Depository and Clearing Co (CCDC), the country's primary bond clearing houses.
That was an increase of 25 billion yuan from the previous month, and the highest value on record. Chinese treasury bonds comprised the majority of offshore holdings, at 1.1 trillion yuan at the end of January, up 0.2 percent from the previous month, and also a new record.
Foreign interest in Chinese bonds has been supported in recent months by a more stable yuan currency as hopes grow that the United States and China will be able to reach a deal to resolve their trade dispute. President Donald Trump added to hopes that punishing tariff hikes could be avoided on Tuesday, saying that he could let the March 1 deadline for a trade agreement with China "slide for a little while," but that he would prefer not to.
Trump also said he expects to meet with Chinese President Xi Jinping to close a trade deal, but did not specify a date. He previously said he would not meet with Xi before the March 1 deadline. The yuan gained 2.6 percent versus the dollar in January, its best month in a year.
A cautious shift by the Federal Reserve also boosted the yuan late in the month, with the US central bank discarding promises of gradual rate increases and saying it would be "patient" before making further moves.

Copyright Reuters, 2019

Comments

Comments are closed.