Chinese media,... or Facebook ? I heard this from a client of mine who is into CHINESE-MEDIA. Perhaps we should start digging around for this news,... then we can come to conclusions amongst ourselves here. It's a hard world today, information is 'king',... need to know news and rumour coming from all angles.

What it said is,... I think, in essence...Chinese Premier Mr Li said that Chinese-Msian trade must be given a chance to stabilize. In order to achieve this, China will contribute by buying Msian bonds.

So,.. there is some truth to what my old client said.

Thank you, Cherroy,... so we have it here. This could be the reason why the RM strengthen in the last few days.

I wonder how much will the RM reverse again after this news,.... I really don't think this news will move the RM all the way up with the impending Feds hike.

'News from all angles',....

Theoretically,.. yes, since there is a willing party ready to buy our issues. So, more debts,... but at the same time, more liquidity too.

Hah,... never thank me, huh ?? I was the one who initiated this from the intelligence around us,...

Right !

So,...now back to making the decision on what rate of the USDMYR and SGDMYR to go in at. This is the window here. If waited too long, the window might close before we managed to go in.

Just kidding, man,...I'm a bit euphoric that I managed to see this news, and confirm on its possible effect on the mkt... so, there is another new avenue to catch critical news now - my old client.

Edited by adding : I was appalled too that we could not reason out why the MYR could stand, and defied 'natural gravity' for it to drop.

This post has been edited by Hansel: Nov 23 2015, 05:17 PM

Prb is in the last 3 days, the RM has strengthened against the USD and the SGD. I have not checked,... but has the peers also strengthened against the USD, or weakened ?

Now must decide if the MYR will continue to strengthen from here on, ignoring the Fed rate hike next month, OR this momentary strengthening of the MYR is just for these few days and after the euphoria of China buying MGS has died down, the MYR will continue to trend downwards in-line with the Fed rate hike ?

If the other currencies weaken in the coming days,.. I'm not sure if the RM will weaken too, given that China has now committed to buying more of the MGS in the near future. China has not openly committed to another country to support their bond issues. Hence, will the RM hold-up ?

Sorry,... but I don't get the point,....

Tq Show,... Which Emerging Country then besides Msia ?

I believed China said that Msia is now allowed to buy up to 50B Yuan of RMB Bonds, and will then 'reciprocate' by buying Msian bonds (MGS) ! However, the anount that they will buy is not stated.

That's right ! This event is a mkt-moving event. As we speak, the MYR continues to strengthen against the SGD and the USD. Is Premier Li still in town, or has he left for Beijing ???

Hi,... Looks like the Msian Gov't now allows the sale of our assets to foreign companies,... or the purchaser here has a more complicated structure than a mere China-based CGN ?

Hi,..well, I can't think of any yet. Even this Chinese bond-buying ann't was not anticipated earlier. It was because of the effect seen on the MYR strengthening that prompted me to go sniffing around on what could have caused this.

Sale of Edra Energy was also not anticipated, but the idea of this happening is pegged in the back of the mind. If sale of 1MDB assets can move the MYR (still unsure yet),... then I tend to think that when 1MDB gets rid of another asset, that would be a 'strengthening catalyst' for the MYR.

Which brings to mind the sale of the second 1MDB asset - the Sungei Besi land. I would say, to rig-up the SPA and for the other legal activities to be made ready,...the event will likely take place right around the time of or after the US rate hike day, namely Dec 18th...

Hi,.. you are right on what you have said. I was trying to stress on the point that the Msian Gov't now allows foreign entities to purchase our assets, for it is a known fact that the GOv't always discourages this.

As I have said earlier, if TNB makes this acquisition, then it would be deemed as a 'left-pocket to right-pocket arrangement'. So, they sold to a Chinese entity instead.

I suspect that this has some relationship to the ann't by Premier Li - 'Since China is buying, then can buy-lar...'

My news is from the legal fraternity. Arul Kanda could still be thinking about this with his people. That Sg Besi land parcel is worth a fortune if done thourgh an outright sale to raise funds for debt servicing.

I beg to differ for the period of the whole last week. The SGD has been WEAKENING against the MYR. Now contemplating heavily to convert into the SGD........