>> stephen engle summed it up nicely.you have sentiment which is rock-bottom at the same time policy credibility issues in the market so you have a rally because we are ready [indiscernible] but at the same time it does not sustain because the credibility is not there so as mentioned the no-show in the mlf is a disappointment to the market as well it undermines the credibility and circumstance. where we can go from here, the fixings for the renminbi this morning was a downturn in the sense we did not get a bigger adjustment that would've been more consistent with the strength of the dollar to help chinese economy with imported inflation so i think where we go from here, the message from the policymakers in china seems to be don't panic, carry-on, and in a certain sense keep an agenda we are at an appropriate time we will come out and do some policy to provide some support to the economy and let the data speak to itself. >> given where the chinese economy is now, [indiscernible] it has been well supported but it needs a we

stephen engle. do we know? stephen: we know china has been trying to improve its relations with the e.u. at a time when there have been a number of different probes back-and-forth between the two trading blocs. there was the electric vehicle probe launched by the e.u. on china. china also having its own investigation into e.u. liquor products. then there is the issue about semiconductor equipment, machines from asml. the netherlands government teaming up with the u.s. to help limit the advanced chipmaking equipment getting into china. so there is a number of different trade issues at the fore of trade relations between the e.u. and china. now we have another e.u. proposal from brussels essentially to thankfully, if approved by member states, to put sanctions on a number of firms around the world including in china, but also in hong kong, india, turkey, syria and others. essentially trying to punish firms using third parties, third countries, essentially, to get equipment for some sort of materials,

let's bring in stephen engle in hong kong. what stands out in china's inflation data today? stephen: the real risk is that deflation will be entrenched in china, and that has a real knock on effect obviously, consumers hold off on big-ticket items, if it's going to be cheaper a year from now, why by the car now or the like. deflationary pressures are mounting and again, would cpi falling 0.8%, the consensus estimate was for .5% fall. this was the fastest pace of deflationary pressure since september 2009 when we saw the launch of the global financial crisis. it is quite concerning as cpi now has fallen for four consecutive months. we already knew that deflationary pressure was happening, wholesale prices have fallen now for 16 consecutive months. there is a lag effect goes on to cpi from wholesale to retail prices, but now that the consumer and domestic confidence is quite weak, four straight months of cpi deflation at a faster pace than what we expected, it is a bad sign obviously for the chinese economy and there is weak external demand and week internal demand. let me brea

let's bring in our chief north asian correspondent stephen engle in hong kong. another pledge end another time we don't get many details on it. stephen: i think authorities have to stay something. a statement coming from the csrc sunday essentially trying to put a band-aid or some cream on the wound, if you will, friday's stockmarket route. essentially all of the jawboning we heard earlier in the week. out by friday and the csi 300 same 3.4%. there was an outpouring of frustration on social media. that is a very narrow area to voice discontent in china because it is heavily scrutinized, obviously. and, basically -- what is the word i am looking for? annabelle: policed? stephen: that's a good one, thank you. it's a monday morning and i'm struggling with my words. i think a lot of frustrated investors went to the u.s. embassy website to voice their frustration. i'm not sure why. i don't know if the u.s. i'd anything to do with this. again, it is showing the potential for social instability with a stock market now losing $6 trillion in the route. this is the sixth c

let's bring in our china north asia correspondent stephen engle. rhaps these steps, even if piecemeal, are still needed. stephen: there is a lot of factors that play, but the main things i am looking at is obviously, the national team, if you can call it that, is probably coming in to help support, you have seen that in the northbound data flows, some onshore funds coming in through hong kong northbound, boosting the csi 300 by the close. so we have seen that. that is essentially what the data is showing, china equity benchmark rebounding. eight out of the last 10 sessions have seen inflows into the mainland. shares from the northbound program. the csi 300 index saw intraday rebounds just as northbound fluids started trading around. so that is not just anecdotal evidence, that is pure data-driven evidence that there is a sort of national team trying to prop up the a share market in shanghai and shenzhen. the other side of the story is much to the neglect, if you will, of the small caps. csi 1000 is a different story than the csi 300. bring up the ch

let's get more from our chief north asian correspondent stephen engle. we are getting a lack of details. the response to it is telling in futures because you still have chinese equities setting up further weakness. >> we are heading toward the big weeklong holiday in china where people go back to their home towns and there are parties, celebrations and the like. the market has been hammered. whatever kind of stimulus or talk of stimulus or job that was done last week fizzled out by friday. csi 300 down 4.8%. we have seen mentally losses for six months in a row. $6 trillion of market capitalization wiped out. people are getting skittish the last six months. the csrc out with a statement yesterday. not surprising given the route friday. i will paraphrase their statement. policymakers vowing sunday to prevent abnormal fluctuations. it did not say how it would do that other than it would give or provide more medium and long-term funds into the market. the third point, cracked down on illegal activities. it did not mention which of those activities they were

for more on this let's bring in our chief north asia correspondent stephen engle. at is the aim here? stephen: the aim is to restore confidence and put discipline into the regulatory body of the csrc, the market regulator. and as you said, the new disciplinarian, the new sheriff in town was announced before the lunar new year holiday. came up with some strategies on how to crack down on what the csrc has repeatedly said was malicious activity in shortselling and the like. so what we have seen of course is the csi 300 pain for the past seven sessions including before and after the lunar new year holiday. the hang seng index in hong kong has been up five of six sessions. you dragged out the chart back to 2021 when the market was at a peak. you are still seeing the csi 300 down 40% from the february peak of 2021, and the hang seng index is down 47%, losing about half of its value over that time. again, there is a need according to the regulator to add not only confidence to the market, but discipline as well. and that is where he comes in because he is known as a disci

our chief north asia correspondent stephen engle joins us. what do we know?> we know beijing is not happy. beijing was able to ward off a similar proposal by the eu to sanction firms. but some member nations in the eu block heard from china trying to dissuade the fears of the eu back then that they were not. their companies or government channels helping aid russia's war in ukraine. it has been resurrected. the eu has proposed sanctions on two dozen firms around the world, including three from china, other from hong kong, other from india, turkey, and syria among others. beijing has put out this statement that china firmly opposes what it calls illegal sanctions, or long arm jurisdiction against china on the grounds of cooperation between china and russia. we can change the page and see chinese and russian enterprises carry out normal exchanges and cooperation. they do not target third parties, nor should they be interfered with or influenced by third-party. that is the big issue, whether these private enterprises are using third parties or third nations to g

stephen engle is here with the response from beijing. considered sanctions on chinese firms but beijing was able to assuage the fears and they did not go forward with it. now what we're hearing is there is a proposal to sanction up to about two dozen firms around the world including three from china, one from hong kong, one from india, syria and turkey. the concern is china or other nations could use third parties to basically circumvent sanctions to get products to russia. china's ministry of foreign affairs is saying it opposes illegal sanctions proposed by the eu. two dozen firms. they did not name the firms because of legal reasons, but if approved this a be the first time that eu imposed curbs on businesses and mainland china and india since russia invaded ukraine. it adds to a rocky road of late between the eu and china even though beijing wants to improve relations. the eu launched a probe into ev makers. china has an antidumping probe into liquor. asml, the chip equipment making giant, which sided with the united states as far as

let's get more with our chief north asian correspondent stephen engle. at happened over the past week? stephen pop authorities have been looking for the economy for this year. halfway through the first quarter the numbers and sentiment has been week. there was concern the lunar new year holiday would be muted as far as travel and spending. as we have seen. granted the last few years were disrupted completely by covid and a very weak covering last year and hesitancy to travel back to hometowns and the like. we are still waiting to see those numbers. they came out much better than expected. low expectations, but still back to pre-pandemic levels. that's a big momentum shift, if you want to call it that. when the chinese consumer is mobilized literally and figuratively it bodes well for the broader economy. the property slump continues. overseas investment sentiment still very weak. i will get to that in a symptom -- second. there is a geopolitical haze over the investment climate in china. data for the travel period over the last week february $.19 february

haidi: that was stephen engle. the political pageantry begins next week.alks at the trade conference in abu dhabi have been extended to a fifth day. member nations are struggling to reach agreements on a range of key issues. tell us about how divisive this is. >> very complicated. a lot of areas of disagreement have to do with how the world's 's poorest people are treated. it is about countries buying grains from farmers at predetermined prizes. it looks like a subsidy and smells like a subsidy but from countries like india's perspective it is about food security for 800 million poor people. from brazil perspective, it is about not being able to sell fairly. fisheries is another sticking point. the same sort of thing. a lot of subsistent fishermen who rely on these programs. this is about daily life and death of feeding people. another issue is e-commerce. tariffs on e-commerce is prohibited. this is where we get into the interesting area of crossover because e-commerce could be used as a bargaining chip for movement on other issues. it illustrates the dep

stephen engle, bloomberg news, tokyo. haidi: breaking news when it comes to development in u.s.the house has held a boat on homeland security's may arcus impeachment and it has been rejected in terms of the impeachment vote. we did know that a panel of republicans are planning to burrow ahead with the vote and approve plans to impeach the homeland security secretary. it is seen as a historic vote on the house for as critic's happened announcing that effort as being unfounded and now we are seeing the house lacks the votes to pass the israel aid bill as well. we are seeing that vote on going but when it comes to the vote to impeach homeland security secretary, that has been rejected. it still would've made him the first cabinet official to be impeached in almost 150 years. it was virtually certain that a senate led by the democrats would not be voting to remove him, but still a significant action given republicans ability to aggressively oppose the secretary who is increasingly coming under scrutiny and criticism for the handling of the southern border. our coverage continues her

let's bring in our chief north asia correspondent, stephen engle. what is the latest here? pretty surprise move since yesterday. we gave a little bit of rally, that it falls back. overall sentiment has been weak. you have sliding stocks, you have a sliding economy. you have geopolitical tensions with the united states, and you are coming up onto a heart break, if you will, using television terms, and that is a week-long holiday were sentiment is pretty weak, so something had to be done. it has been a pretty bad here for officials in xi jinping's government. he lost a foreign minister who was replaced. the top general in the pla replaced. now you have the securities regulator abruptly changed. given the situation and given the presidents in the past with security regulators changing, you usually get a boost in stocks because again, they are given a mandate to use perhaps more forceful approaches to stop a potential stock market slide or whatever rectification that needs to be done. here's the two gentlemen in question right now. the securities regulator, chairman, and party

our chief boy the asia correspondent stephen engle joining us. is it something substantial or a band-aid solution? >> a bit>> of a piecemeal approach. keep in mind there has been a number of different factors in play. there has been perhaps the national team coming in coming -- across border and propping up stocks after the midday break. small caps have been pummeled. we talked about yesterday were the csi 1000 index following another 6%. that two things i can talk about now. one, we are seeing the national team perhaps coming in through some of these directives coming through securities regulators. there is this chart saying the nine year lows in sight. we already saw a five-year low for the csi 300 on friday. i would to change the terminal. i will get to some of the piecemeal approaches and regulatory moves we are hearing about in a second. look at this northbound stock connect flows. five straight days we are seeing intraday rebounds have started to coincide more with buying by offshore participants. eight of the past 10 sessions have seen inf

let's bring in stephen engle. >> notice respect that she did not show up in he did not address the fanse is getting off the plane. great to see you. your your pulse check. you said this no-show was outrageous when i'm not going to beat up known the government but the bigger western is, should the hong kong government come back and bite hong kong? >> this affair is getting increasingly messier. it's my view the organizer needs to bear full responsibility. from the time being, they assured the government that would play for at least 25 minutes. all of the marketing and promotional materials make it evident to any particular purchaser is it's not -- the government received a trophy after the game. given he walked in and off the field but then they said they were pushing government to blacklist unless they provide full refund to the attendees. is that going to happen? they said they would withdraw the application for matching funds. you want them to refund those tickets. is there any -- >> is not enforceable. it's up that they view my want government to do is be very clear promotional mater

yvonne: ceo speaking with stephen engle.e subscriber you can catch up on our interviews by using tv . join the conversation, send messages. if you have questions during live shows, check it out. this is bloomberg. ♪ ♪ yvonne: you are watching bloomberg markets: asia. smic posted better-than-expected profit on robust demand for their marquee smartphones. net income was under $175 million. china's chipmakers capable of making nanometer -- seven nanometer chips used in smartphones. investors are exploring an offer to buy we work out of bankruptcy. newman and the start up flow have been seeking information to formulate a bid. the cofounder step down as ceo after a botched attempt at going public. national australian bank says andrew irvine will become chief executive officer. irvine had been the executive for private banking since 2020. he will start in the rule when his predecessor retires after more than four years in charge. new york trader shares fell the most in 11 months as they announced a buyback after fourth-quarter