PBOC skips open market operations
The People’s Bank of China, the nation’s central bank, skipped open market operations for the 29th consecutive trading day on Dec 5, the longest stretch since early 2016, citing sufficient liquidity in the banking system. No reverse repos will mature. A reverse repo is a process by which the central bank purchases securities from commercial banks through bidding, with an agreement to sell them back in the future. The construction of a refinery with a capacity of 20 million metric tons a year was launched on Dec 5 in Jieyang, Guangdong province, by China National Petroleum Corp, the nation’s largest oil and gas producer by domestic annual output, and Venezuela’s PDVSA, with a total investment of 65.4 billion yuan ($9.5 billion; 8.4 billion euros; £7.5 billion). The test run of the refining-aromatics-chemical integrated project will take place in 2021, said CNPC. FAW Jiefang Automotive Co Ltd, a truck subsidiary of China’s leading automaker FAW Group, sold a record 299,273 Jiefang trucks in the first 11 months of this year, the company said on Dec 4. The company has introduced several new models to the market this year, including the seventh generation of its classic J7 heavy truck. The company has set goals of selling 350,000 vehicles in 2020 and 430,000 vehicles in 2023. The number is expected to reach 500,000 in 2025.