Financial Authorities Declarations
- Flash News !
-The National Food and Strategic Reserves Administration will release 30000 tonnes of copper, 70000 tonnes of aluminum and 50000 tonnes of zinc from National Reserves in September as the third batch of its program reducing pressure of commodities prices.The eligible firms processing or manufacturing metal (especially Medium and Small industrial firms) should use released metal for production and shall not resold or hoarded.
-Data from the State Administration for Market Regulation indicated that the number of market entities stood at 145 million. In 2021 H1 13.95 million newly market entities had been created including 9.46 million Individual Businesses.
– Data from the Asset Management Association of China show that the scale of Assets under management of public offering funds reached 23.54 trillion Yuan at the end of July. Noted that there are 137 asset management companies registered in China including 44 joint-ventures and 92 domestics firms. In addition, 12 securities firms or asset management subsidiaries under securities firms and 2 insurance asset management companies are qualified to manage public offering funds.
-The National Intellectual Property Administration (NIPA) declared that he will accelerate the review of patent inventions to boost innovations and improve intellectual property rights protection.“The intellectual property authorities will accelerate the intelligent upgrading of the review system and implement differentiated review policies with innovative work concepts and method,” said SHEN Changyu.Currently, review process of an application is around 13.3 months for a high-value patent invention while the average cycle for a general patent is 19.1 months.
– The e-CNY, or commonly called the e-Yuan, was firstly used in a transaction by the Dalian Commodity Exchange (DCE) for payment of storage fees to a delivery warehouse. The operation was assisted by the Bank of Communications and Bank of China. The DCE plans to expand use of e-CNY as indicated.
- The CSRC approved IPO !
The China Securities Regulatory Commission. (CSRC) approved IPO on the Shenzhen ChiNext market of Kidswant Children Products Co., Ltd., Shenzhen Urban Transport Planning Center Co., Ltd., Bisen Smart Access Co., Ltd. and Tibet Duo Rui Pharmaceutical Co., Ltd. In addition, the CSRC approved IPO on the of Hunan Hualian Porcelain Industry Co., Ltd on A-Share market.
- Some Results of major Banks and Insurance firms
|Banking and Insurance Sectors||H1 2021||Units|
|Total operating Revenue||109||Billion Yuan|
|Total assets||8||Trillio Yuan|
|Net Profits||40.11||Billion Yuan|
|Non-Performing Loan Ratio||1.15%|
|— Growth||-0.1 pp||mom|
Industrial and Commercial Bank of China
|Business Revenue||426.4||Billion Yuan|
|Net Profits||164.4||Billion Yuan|
|Non-Performing Loan Ratio||1.54%|
|— Growth||-0.04 pp||mom|
|Provision coverage ratio||191.97%||+ 11.29% yoy|
People’s Insurance Company of China
|Business Revenue||344.1||Billion Yuan|
|Net Profits||16.9||Billion Yuan|
China Life Insurance
|Premium Income||442.3||Billion Yuan|
|Net Profits||40.98||Billion Yuan|
Central Bank Operations and declarations
|August 23||Reverse Repo||7-days||10 Billion Yuan||2.2%|
|August 24||Reverse Repo||7-days||10 Billion Yuan||2.2%|
|August 25||Reverse Repo||7-days||50 Billion Yuan||2.2%|
|August 26||Reverse Repo||7-days||50 Billion Yuan||2.2%|
|August 27||Reverse Repo||7-days||50 Billion Yuan||2.2%|
|August 30||Reverse Repo||7-days||50 Billion Yuan||2.2%|
- Premier LI Keqiang signed a decree to boost market entities registration
Premier LI Keqiang signed a State Council decree on regulation on the registration and administration of market entities.The new rules will take effect on March 1 2022 to streamline registration processes, lower institutional costs and reduce burden. Registration authorities should optimize the process providing online services, and shall not require documents still available on the existing government database information-sharing platform.Supervision of market entities should be strengthened to avoid fraudulent documents and materials.
- MOC summary on Services sector opening
The Ministry of Commerce (MOC) summarizes the recent advances in services sector opening. The Vice-Minister WANG Bingnan said that for four consecutive years negative list was shortened for foreign investment, launch a special list for the Hainan Free Port, and signing the Regional Comprehensive Economic Partnership Agreement.
“The national comprehensive demonstration zone of service industry opening-up and the pilot free trade zone have been set up in Beijing, while four pilot zones for deepening opening-up in service trade have been added in Tianjin, Shanghai, Chongqing and Hainan” added CHEN Chunjiang, an official with the MOC.
In addition, a large part of the 14th five-years plan is focused on development of services trade more particularly digital services.
- Clarification about the Internent platforms regulation
The Central Committee for Financial and Economic Affairs through HAN Wenxiu declared that the new internet platforms regulation is ‘’non-discriminatoiry’’ and not target private and foreign enterprises.
“The regulation aims to curb violations of laws or regulations concerning internet platforms, including those owned by the state or with mixed-ownership […] The purpose of tougher regulation is to ensure healthier, more sustained and longer-term development”, added HAN Wenxiu.
The main goal of the regulation is to prevent monopoly and a disorderly expansion of the internet platforms while challenging domestic firms. In addition, the new rules will ensure a greater data security and personal privacy while protecting national security and public interest.
“Strengthening the fight against monopoly and unfair competition will be a regular job for the Chinese government, which is expected to help create a level playing field, broaden the prospects for market entities, especially the small firms, and protect consumer interests” he concluded.
|Services Trade||July 2021||Units|
|— Growth||+ 0.7 bln||mom|
|Industrial Firms Profts||4.92||Trillion Yuan|
|— Growth from 2019||+44.6%||over 2 years|
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