Sector Report on China 27.12.2021

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Financial Authorities Declarations

Flash News !

-The China Securities Depository and Clearing Corporation Limited (CSDC) data showed that 1.34 million new investors enter the Shanghai and Shenzhen Stock markets in November up 36.38% from previous month. CSDC data also highlighted that A-shares accounts reached 196 million Yuan at the end of November. From January to November, 18.26 million new investors enter Chinese bourses exceeding the 2020 level and 2017 record high!

-The chinese cotton output at the end of November stood at 5.73 Million tonnes down 3% yoy due  to the decrease of 4.4% yoy of cotton fields areas (3.03 Million hectares). In the same time, cotton yield per hectare reached 1892.6 Kg up 1.5%.  89% of the output came from Xinjiang Uygur Autonomous Region with a total production 5.1 Million tonnes.

Data of the State Administration of Foreign Exchange.

Commercial Banks November 2021 Units
Net FOREX Settlements 160.9 Billion Yuan
– Purchases 1.51 Trillion Yuan
– Sales 1.35 Trillion Yuan

 

The CSRC approved IPO !

The China Securities Regulatory Commission. (CSRC) approved IPO of Jiangsu Smartwin Electronics Technology Co., Ltd., SEP Analytical (Shanghai) Co., Ltd. and Ganzhou Teng Yuan Cobalt New Material Co., Ltd. on the ShenZhen ChiNext market.

 

Central Bank Operations and declarations

The National Interbank Funding Center (NIFC) lowered the 1-Year Loan Prime Rate (LPR) to 3.80% (previous 3.85%) while the 5-Years LPR is unchanged at 4.65%.

Date Operations Maturity Amount Interest rate
December 20 Reverse Repo 7-days 10 Billion Yuan 2.2%
  Reverse Repo 14-days 10 Billion Yuan 2.35%
December 22 Reverse Repo 7-days 10 Billion Yuan 2.2%
  Reverse Repo 14-days 10 Billion Yuan 2.35%
December 23 Reverse Repo 7-days 10 Billion Yuan 2.2%
  Reverse Repo 14-days 10 Billion Yuan 2.35%
December 24 Reverse Repo 7-days 10 Billion Yuan 2.2%
  Reverse Repo 14-days 10 Billion Yuan 2.35%

 

People’s Bank of China (PBOC) Data

  November 2021 Units
Total Bonds Issuance 6.34 Trillion Yuan
Treasury Bonds issuance 669.76 Billion Yuan
Loval Gvt Bonds 680.38 Billion Yuan
Financial bonds 1.01 Trillion Yuan
Corporate Bonds 1.42 Trillion Yuan
Asset-Backed securities 129.65 Billion Yuan
interbank deposit certificates 2.39 Trillion Yuan
Outstandings of Bonds hled in custody 131.7 Trillion Yuan

 

Government Declarations

The State Council’s Executive Meeting chaired by Premier LI Keqiang declared that “China will continue to expand opening-up, roll out measures to respond to difficulties and challenges, ensure cross-cyclical adjustments and help ease problems facing enterprises with a special focus on supporting smaller ones, as part of effort to secure business orders, anchor market expectations and underpin steady growth of foreign trade”

The State Council also indicates carefully monitor the foreign trade as uncertainty and new challenges are rising and could affect the stability of the economy and development.  In 2022, new measures will be established to stabilize or maintain foreign trade activities in case of needs. As a part of the policy support to imports and exports activities, tax and fees cuts and exports tax rebates are scheduled and will be implemented faster.

The Financial institutions will be guided to support the development of new products to fit the demand of firms in foreign trade activities.

“The RMB exchange rate will be kept basically stable, and banks will be encouraged to conduct forward foreign exchange settlement and sales services in a targeted manner, to make foreign trade enterprises more resilient to exchange rate risks.”

Data published !

  Jan-Nov 2021 Units  
Non-Financial ODI 640.38 Billion Yuan  
— Growth -2.9 % yoy  
Non-Financial ODI 99.13 Billion usd  
— Growth +4.3 % yoy  
Net FOREX Settlements 1.43 Trillion Yuan  
  November 2021 Units
Electricity Consumption 671.8 Billion kWh
— Growth +3.1 % yoy
— Growth from 2019 +6.6 % over 2 years
Natural gas output 17.7 Billion m^3
— Growth +4.4% yoy
  Jan-Nov 2021 Units
Electricity Consumption 7.5 Trillion kWh
— Growth +11.4 % yoy
Natural gas output 186 Billion m^3
— Growth +19 % yoy
Natural gas imports 109,76 millions tonnes
— Growth +21.8 % 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

 

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