Briefly

PBOC conducts CBS valued at $701 million

The People's Bank of China, China's central bank, has conducted a central bank bills swap operation to improve the liquidity of perpetual bonds. The three-month CBS, valued at 5 billion yuan ($701.56 million), is open to primary dealers for bidding at a fixed rate of 0.1 percent, the PBOC said in a statement. The CBS scheme allows dealers to swap the perpetual bonds they hold for central bank bills. Perpetual bonds are fixed-income securities with no maturity date and are not redeemable, but pay a steady stream of interest in perpetuity.

Renminbi weakens against greenback

The central parity rate of the Chinese currency renminbi, or the yuan, weakened 22 pips to 7.1270 against the US dollar on Thursday, said the China Foreign Exchange Trade System. In China's spot foreign exchange market, the yuan is allowed to rise or fall by 2 percent from the central parity rate each trading day. The central parity rate of the yuan against the greenback is based on a weighted average of prices offered by market makers before the opening of the interbank market each business day.

China to elevate gasoline, diesel prices

China's top economic regulator announced that retail prices of gasoline and diesel will increase from Friday. The decision was made on Thursday and came in response to recent changes in international oil prices. Gasoline and diesel prices will increase by 210 yuan ($29.47) and 200 yuan per metric ton, respectively, the National Development and Reform Commission announced in a statement. Under China's current pricing mechanism, the prices of refined oil products are adjusted following changes in international crude oil prices. China's major oil companies and oil refineries have been directed to maintain oil production and facilitate transportation to ensure stable supplies.

Xinhua - China Daily