Financial Authorities Declarations
– The China Development Bank issued 10 billion yuan of green bonds to global investors in a move to support ecological protection of the Yellow River basin.
– XPeng Inc, a Chinese manufacturer of smart electric vehicle, made its IPO on Hong Kong under code 9868HK issuing 85 million of A-share ordinary shares.
– The China’s national carbon emissions trading marking started its first batch of trading between power companies. Expansion to others sectors and industries are scheduled. The opening price for carbon quotas was set at 48 Yuan.
The CSRC approved IPO !
The China Securities Regulatory Commission. (CSRC) approved IPO of Jinan Shengquan Group Share Holding Co., Ltd., Hengsheng Energy Co., Ltd., and Qingdao Food Co., Ltd.These stocks will be listed on the A-Share markets. In addition, the CSRC approved IPO on ChiNext market in Shenzhen: Guangzhou S.P.I Design Co., Ltd., COFCO Engineering & Technology Co., Ltd., Sicher Elevator Co., Ltd., Anhui Chaoyue Environmental Protection Technology Co., Ltd. and Sino Biological Inc.
Central Bank Operations and Declarations
The People’s Bank of China confirmed pursuing its “normal monetary policy”.
“The policy aims to improve support for the real economy and create a suitable monetary and financial environment for the country’s high-quality development […] The central bank will ensure that the growth of money supply and social financing matches nominal economic growth, supports the green development and technological innovation of small and medium-sized enterprises, and keeps social comprehensive financing costs stable with slight declines” said SUN Guofeng head of the monetary policy department of the PBOC.
PBOC issued a white paper on e-Yuan !
The PBOC released a white paper focusing on progress in digital fiat currency (e-Yuan). “The e-CNY is the digital version of the fiat currency issued by the People’s Bank of China and it is handled by authorized operators. It is a value-based, quasi-account-based and account-based hybrid payment instrument with legal tender status and loosely-coupled account linkage” as indicated in the white paper. The white paper also clarifies the Chinese positions on cryptocurrencies. PBOC considers that cryptocurrencies have a potential risk for financial stability due to lack of intrinsic value, high fluctuations, low trading efficiencies and important energy consumption (among others).
PBOC data on Real Estate !
MOC pledged to expand cross-border e-commerce !
The Ministry of Commerce (MOC) announced expansion of pilot zones for cross border e-commerce. The MOC also pledged to release a guideline strengthening the intellectual rights protection, facilitating the e-commerce import export activities.
Chinese authorities confident on inflation target of 3% !
The National Bureau of Statistics (NBS) indicated that despite mild inflationary pressure, the country CPI can reach the target of 3% in 2021. NBS spokesperson LIU Aihua indicated that many factors are positive. Concerning Foods prices, as the 2021 summer harvest is good the prices of grains are expected to be stable. The Pork prices despite high variation is going to be stabilized due to increasing in hog production and Central Gvt supportive policy.Concerning, industrial sector, international prices of commodities are increasing and so industrial consumer goods prices could increase in consequence but at sustainable level. The General Administration of Customs (GAC) indicated that risks of imported inflation are controllable. “At present, China’s economy is continuing its stable and sound performance and factors conducive to stabilizing prices are also increasing”, GAC spokesperson LI Kuiwen declared.
Sources : Ministry of Finance, People’s Bank of China and the State Administration of Foreign Exchange, National Bureau of Statistics, Ministry of Commerce, Ministry of Finance.