REPORT ON NATIONAL INTERBANK FUNDING CENTER IN FEBRUARY 2002
The total turnover decreased slightly and
the market rate dropped
Because of the Spring Festival, there were
only 17 trading days in February. The total turnover was 526.283 billion yuan
with 3538 deals being made. The average daily turnover was 30.958 billion yuan,
up 10.45 per cent compared with January. The market rates fell significantly
compared to January, among which the weighted average interest rate of
interbank borrowing decreased 4.18 per cent and weighted repo rate decreased
2.85 per cent as against that in January. The turnover of cash bond dropped
with the average daily turnover down 25.78 per cent compared to the month
before.
The average daily turnover of February increased slightly by 0.76 per cent compared to January. Trading was slack around the Spring Festival. The interest rate cut did not lead to the sharply downward movement of weighted average rate. Because the trade became active at the end of February, the effect of the rate cutting was achieved. The average rate dropped to 2.142, the lowest on February 27.
Because of the long holidays for the Spring
Festival, the average daily turnover of short-term maturity decreased
significantly compared to January, among which overnight call money and 7-day
declined 53.77 per cent and 19.28 per cent, respectively when compared to
January. The turnover of overnight call money accounted for 4.33 per cent of
the total turnover, while the 20-day soared 786.73 per cent, accounting for
26.95 per cent of the total turnover.
Before February 21, the weighted rate
remained stable at around 2.140. It dropped to 1.992 immediately on February 21
-- the same day as the interest rate cut -- and kept going down slowly. On
February 28, it closed at 1.967, the lowest of the month -- a significant
effect of the rate cut. The trade was also inactive around the Spring Festival
and climbed up at the end of February.
Similar to the interbank funding market,
the 14-day and 21-day increased 276.58 per cent and 462.46 per cent compared to
January. But the 7-day decreased 15.64 per cent and its proportion in the total
turnover fell from 86.22 per cent in January to 64.02 per cent last month.
There was no trading of the maturity beyond 180 days.
The spot bond transaction decreased
moderately in February with the daily average turnover dropping 25.78 per cent
compared to last month. The trading was rather sluggish around the Spring
Festival and there was no trade on February 10-11. Stimulated by the rate cut,
the weighted redemption yield fell from 2.800 to 2.530 on February 25, the
lowest in February. The weighted redemption yield rebounded at the end of
February, because of the active trade of the long-term bond and closed at 2.748
with 3.135 billion yuan, the largest daily turnover in the month.
In February, the structure of the
inter-institution capital flow remained largely unchanged, but the funding
situation reflected the surplus of the fund. The borrowing of insurance
companies continually declined for the second straight month. Lending increased
sharply and net borrowing plummeted by 94.38 per cent when compared to January.
Because of the Spring Festival, borrowing amount and net borrowing amount of
securities firms and investment funds decreased severely. The funding of
State-owned commercial banks and city commercial banks did not change much
compared to January. And the net borrowing of policy banks soared several times
because the issue of financial bond had not begun yet.
(By Chen Lifeng)