Sector Report on China 15.11.2021

0
54

Financial Authorities Declarations

  • Flash News!

-The National Intellectual Property Administration (NIPA) will strengthen monitoring and sanction for abnormal patent agent activities.

-Daily coal output hit once again a historic record to 12.05 Million tonnes produced on November 10.  Facing shortage and prices hikes of imported coal, China decided to boost coal mining production to ensure energy supplies during winter.

  • BSI Starts !!

The Beijing Stock Exchange starts trading on November 15 !

YI Huiman declared that it is “another landmark in China’s capital market reform and development’’.

81 firms debuted listing on November 15 including 71 transformation from the ancient system of the ‘’National Equities Exchange and Quotations” and 10 newly approved firms.

  • The CSRC approved IPO !

The China Securities Regulatory Commission. (CSRC) approved IPO of Hangzhou Bio-Sincerity Pharma-Tech Co., Ltd., Wuhan Kotei Informatics Co., Ltd. and Henan Carve Electronics Technology Co., Ltd.   will on the Shenzhen Stock Exchange’s ChiNext.

 

Central Bank Operations and declarations

Date

Operations Maturity Amount

Interest rate

November 9 Reverse Repo 7-days 100 Billion Yuan 2.2%
November 11 Reverse Repo 7-days 100 Billion Yuan 2.2%
November 15 MLF 1-year 1 Trillion Yuan 2.95%
  Reverse Repo 7-days 10 Billion Yuan 2.2%

 

  • PBOC and BoE extended bilateral currency swap agreement !

The People’s Bank of China (PBOC) extended the bilateral currency swap scheme agreement with the Bank of England with a scale of 350 Billion Yuan or 40 Billion Pounds for five years.

The extension would help deepen the monetary and financial cooperation between the two countries and safeguard financial stability.” PBOC said.

  • PBOC new tool to support carbon-neutrality project !

The PBOC unveiled a carbon reduction tool providing low-cost loans for financial institutions to better guide those institutions to support loans to firms involved in carbon reduction projects. The loan interest rates should be in line with the benchmark lending rates or Loans prime rates.

“The creation and launch of such a structural monetary policy tool will support the development of key fields, such as clean energy, energy conservation and environmental protection, in a « steady, orderly, targeted and direct manner » said the PBOC.

Financial institution could apply for this low-cost funding from PBOC after the loans are made as specified by the regulator. The PBOC provide 60% of loan principal with a one-year lending rate of 1.75%.

  • Real Estate Data !

Real Estate Market

October 2021

Units

New home prices in Tier 1 Cities* +0.3% mom
Resold Houses prices in Tier 1 Cities* -0.4% mom
New home prices in Tier 2 Cities -0.2% mom
New home prices in Tier 3 Cities -0.3% mom
Property Investment 12.49 Trillion Yuan
— Growth +7.2% ytd
— Growth from 2019 +14% over two years
*Beijing. Shanghai. Shenzhen and Guangzhou

 

  • Macro Indicators
  October 2021 units
New loans in Yuan 826.2 Billion Yuan
 — growth +136.4 Bln yoy
M2 233.62 Trillion Yuan
 — growth +8.7% yoy
M1 62.61 Trillion Yuan
 — growth +2.8% yoy
M0 8.61 Trillion Yuan
 — growth +6.2% yoy
Net PBOC injections -78.1 Billion Yuan
RMB cross-border trade 617.5 Billion Yuan
CPI +1.5% yoy
 — growth +0.7 pp mom
Non-Foods CPI +2.4% yoy
Foods CPI -2.4% yoy
CPI monthly -0.7 % mom
Non-Foods CPI +0.4% yoy
Foods CPI +1.7% yoy
PPI +13.5% yoy
PPI monthly 2.5 % mom

 

Government Declarations

  • Private funds to support ecological policy !

The General Office of the State Council will support private capital in ecological protection and restoration policy.

A circular detail the mechanism and the requirement to attract private funds in the ecological policy. Main objectives are to promote investment in key areas related to environment protection and restoration.

  • Data published !
  October 2021 units
Retails sales of consumer goods 4.05 Trillion Yuan
— growth from 2019 +9.4% over two years
Industrial VA +3.5% yoy
Urban Unemployment Rate 4.9%  
– UR 25-59 years old 4.2%  
  Jan-Oct 2021 Units
FDI 943.15 Billion Yuan
 — growth +17.8% yoy

 

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, State-owned Assets Supervision and Administration Commission

 

 

LEAVE A REPLY

Please enter your comment!
Please enter your name here