China Stocks Rally as Central Bank Injects Cash Before Holidays

Chinese stocks climbed in light trading, led by technology and consumer companies, as the central bank injected cash into the financial system before markets close for holidays next week.

The Shanghai Composite Index rose 2.4 percent at 11:02 a.m. local time, paring its decline this year to 23 percent. A gauge of technology companies rallied to a one-week high, while Guangzhou Goaland Energy Conservation Tech Co. jumped by the daily 44 percent limit on its first day of trading. Volume on the benchmark gauge was 26 percent below the 30-day average for this time of day.

The People’s Bank of China will inject 100 billion yuan ($ 15 billion) into the banking system using reverse repurchase agreements on Tuesday, according to two traders at primary dealers required to bid at the auctions, as demand for cash rose in the run up to the lunar new year holidays. Chinese shares are the world’s worst performers this year amid concern the economic slowdown and a weakening currency will accelerate record capital outflows.

The yuan in Hong Kong slid overnight after the operator of China’s foreign exchange market said the yuan will be able to trade more flexibly against a currency basket.

Source : Bloomberg


US: Airstrike Destroys Islamic State Cash Supply

The U.S.-led coalition says its airstrikes hit an Islamic State “cash collection point” this week near IS’s northern Iraqi stronghold of Mosul, destroying “tens of millions of dollars” the jihadists were using to pay their fighters.

The coalition spokesman, U.S. Army Colonel Steve Warren, said Wednesday that Monday’s attack was the second strike in Mosul against an Islamic State financial target in as many weeks.

While Warren said the coalition does not know whether the cash was in dollars or dinars, “we do know we have impacted their ability to pay their fighters in the immediate term.

“As we strike the Daesh cash, as we call it here in Iraq, we are going to see them react to our strikes,” Warren said, “whether it’s storing their cash in smaller amounts, in multiple locations, or whether it’s moving it more often. We don’t want to tip them off to what we see.”

Source : VOA