PBOC Injects Billions to Ease Liquidity Crunch.

The People's Bank of China (PBOC) has injected 900 billion yuan ($124.3 billion) into the country's banking system through one-year policy loans. This move is designed to counter the increased bond sales by local governments and alleviate the debt burden. The PBOC has announced that it has provided medium-term facility (MLF) loans to financial institutions at an interest rate of 2%. This move comes as China's banking system faces liquidity pressures towards the end of the year, with local government bond issuance increasing significantly as part of efforts to reduce debt risks and stimulate the struggling economy. Bond issuance in November is expected to reach 1.3 trillion yuan ($179.4 billion), the highest monthly volume in a year. To further ease liquidity pressures, the PBOC is expected to reduce banks' reserve requirements before the end of the year.

Bank Sentral China Menyuntikkan US$ 124 Miliar ke Sistem Perbankan

Trade War Fears Fuel China's Record Export Year.

Analysts anticipate that China's exports will reach a record high this year as countries expedite orders in anticipation of higher tariffs under the Trump administration. Analysts anticipate a 7% expansion in China's export sector during the fourth quarter of 2024, exceeding the 5% growth observed in October. This growth would result in total exports for 2024 reaching $3.548 trillion, exceeding the previous record set in 2022. Analysts believe that panic stockpiling by foreign companies and the fear of a trade war will contribute to the surge in exports. China's export growth has been accelerating since the third quarter of 2024, with the potential for a trade surplus close to $1 trillion on the horizon. In light of the current uncertainty surrounding trade relations with the United States, it is probable that Chinese policymakers will place a greater emphasis on stimulating domestic consumption in the coming year. Despite a decline in domestic demand, China is pursuing avenues to expand its overseas sales.

Dibayangi Ancaman Tarif Trump, Ekspor China Diproyeksi Sentuh Rekor Tahun Ini

Oil Prices Dip Slightly Amid Geopolitical Tensions.

Oil prices saw a modest decline at the start of the week, following a 6% surge the previous week. However, concerns about supply remained due to the ongoing tensions between Western countries and major oil producers Russia and Iran. The price of Brent crude oil futures for January 2025 delivery declined by 0.57% to $74.74 per barrel, while West Texas Intermediate (WTI) crude oil futures for January 2025 delivery decreased by 0.73% to $70.73 per barrel. Last week, both benchmark oil contracts saw substantial gains, reaching their highest closing levels since November 7th in the wake of Russia's firing of hypersonic missiles into Ukraine. Market participants are currently awaiting further indications from geopolitical developments and the Federal Reserve's policy outlook in order to ascertain the future trajectory of oil prices. The ongoing conflict between Ukraine and Russia has also prompted concerns about potential disruptions to oil supply.

Harga Minyak Acuan Kompak Melemah, Ketegangan Rusia dan Iran Tahan Koreksi