Financial Authorities Declarations
- The CSRC approved IPO !
The China Securities Regulatory Commission. (CSRC) approved IPO on STAR market of Sichuan Huiyu Pharmaceutical Co., Ltd., Shanghai Yizhong Pharmaceutical Co., Ltd., Neway CNC Equipment (Suzhou) Co., Ltd. and Guizhou Zhenhua E-chem Inc. In addition, the CSRC approved IPO on A-shares market:
Beijing Caishikou Department Store Co., Ltd and Zhengzhou Qianweiyangchu Food Co., Ltd
- The CSRC approved more foreign firm purchasing of Chinese Joint-Venture firm !
More and more Foreign-invested financial institutions enter in the Chinese securities sectors as new rules supporting greater opening up of the sector.
J.P. Morgan announced that the China Securities Regulatory Commission (CSRC) approved the purchasing of J.P. Morgan Securities (China) Company Limited making it the first foreign firm owning a securities JV firm.
« China represents one of the largest opportunities in the world for many of our clients and for JPMorgan […] Our scale and global capabilities give us a unique ability to help Chinese companies grow internationally and also support global investors as they expand into China’s maturing capital markets. » said Jamie DIMON, Chairman and CEO of JPMorgan Chase.
The CSRC also accepted the license application of Standard Chartered Hong Kong to establish a brokerage in the Chinese mainland.
Central Bank Operations and declarations
|
Date |
Operations | Maturity | Amount |
Interest rate |
| August 9 | Reverse Repo | 7-days | 10 Billion Yuan | 2.2% |
| August 10 | Reverse Repo | 7-days | 10 Billion Yuan | 2.2% |
| August 11 | Reverse Repo | 7-days | 10 Billion Yuan | 2.2% |
| August 12 | Reverse Repo | 7-days | 10 Billion Yuan | 2.2% |
| August 16 | Reverse Repo | 7-days | 10 Billion Yuan | 2.2% |
| MLF | 1-year | 600 Billion Yuan | 2.95% |
- No changes in the PBOC monetary policy report: “Prudent and stable policy”
The PBOC declared maintain its current monetary policy focus on stability and support for real economy. Consequently, the PBOC clearly reaffirms that its will avoids a flood-like monetary policy.
“The bank will coordinate macroeconomic policies for 2021 and 2022, boost high-quality development with moderate monetary growth, and support the continuous recovery of small and medium-sized firms as well as industries in difficulties,” according to the quarterly report on monetary policy.
The report also called to strengthen RMB flexibility, stabilize market expectations and improve macro-prudential management.
- PBOC tests new rules for non-financial corporate debt issuance.
The People’s Bank of China (PBOC) decided as a pilot test, to remove the credit rating requirements for the issuance of non-financial corporate debt instruments (Article 9 of the Administrative Measures for Debt Financing Instruments of Non-Financial Enterprises in the Interbank Bond Market) in order to motivate markets entities to use external ratings to support the current market-oriented reform.
However, the issuance of others corporate debt instruments are still subjected to the Article 9 !
- PBOC Data on Real Estate Market
| Real Estate Market | July 2021 | Units | |
| New home prices in Tier 1 Cities* | +0.4% | mom | +6% yoy |
| Resold Houses prices in Tier 1 Cities* | +0.4% | ||
| New home prices in Tier 2 Cities | +0.4% | mom | +4.7% yoy |
| New home prices in Tier 3 Cities | +0.4% | mom | +3.3% yoy |
| Outstanding of Property loans | 50.78 | Trillion Yuan | +9.5% yoy |
| property development climate index | 100.98 | points | |
| *Beijing. Shanghai. Shenzhen and Guangzhou | |||
- PBOC and China Banking and Insurance Regulatory Commission on Banking and Insurance sector
| Insurance Sector | H1 2021 | Units |
| Premium Income | 2.7 | Trillion Yuan |
| — growth | +4.2% | yoy |
| Combined Assets | 24 | Trillion Yuan |
| — growth | +7.4% | yoy |
| Banking Sector | H1 2021 | Units |
| Local and Foreign Currency assets | 336 | Trillion Yuan |
| — growth | +8.6% | yoy |
| Commercial Bank Cmb Profit | 1.1 | Trillion Yuan |
| — growth | +11.1% | yoy |
| Non-Performing Loan ratio | 1.76% | |
| — growth | -0.05 pp | yoy |
Government Declarations
- Chinese Government will builf carbon-pools areas in Shaanxi.
The Chinese Government and the Shaanxi Province Government are aiming to establish a carbon-pool pilot zones of 74 7000 hectares by 2023. The Shaanxi Province aims to build 70 carbon-pool areas in different landscapes such as forests, grasslands, wetlands etc … the main goal of these carbon-pools is to naturally absorb 7.63 Million tonnes of CO2.
Data published
| July 2021 | Units | |
| New Yuan denominated loans | 1.08 | Trillion Yuan |
| — growth | +90.5 Bln | yoy |
| M2 | 230.22 | Trillion Yuan |
| — growth | +8.3% | yoy |
| M1 | 62.04 | Trillion Yuan |
| — growth | +4.9% | yoy |
| M0 | 8.47 | Trillion Yuan |
| — growth | +6.1% | yoy |
| Retail Sales | 3.49 | Trillion Yuan |
| — growth | +8.5% | yoy |
| — growth from 2019 | +7.2% | over two years |
| New urban jobs created | 8.22 | Million jobs |
| % of the Year Target | 74.7% | |
| Unemployment rate in urban area | 5.1% | |
| — growth | +0.1 pp | mom |
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, General Administration of Customs
