Financial Authorities Declarations
Flash News !
-The National Bureau of Statistics (NBS) conducted a reduction of 241.9 billion Yuan of the 2020 GDP. The revised GDP for 2020 is then 101.36 Trillion Yuan (about 15.92 trillion USD). So, the GDP growth in 2020 was 2.2% after revision (-0.1 pp compare to previous calculations).
-The Shanghai Environment and Energy Exchange (SEEE) declared that the new carbon market volume stayed at 107 million tonnes in trading volume and 4.43 billion yuan in turnover at the end of December 15 (the 102 nd trading days of the carbon market).
-The Beijng Stock Exchange (BSE) reported ‘’smooth operations ‘’ for the first trading months. 82 firms are listed on the BSE including 71 transfers from the oldest market National Equities Exchange and Quotations (NEEQ) and 11 approved IPO.
-The China Development Bank issued 15 billion Yuan of bonds to support green transportations projects maturing in 3 years at 2.19%.
“So far, the bank has issued green bonds worth about 105 billion yuan in total, with the balance of such bonds standing at around 95 billion yuan” the bank said.
-The Futures Market registered a total turnover of 50.79 trillion Yuan up 9.24% yoy in November 2021 according to the China Futures Association (CFA). In the Jan-Nov 2021 period, the total turnover stood at 536.46 trillion Yuan up 40.27% yoy.
-According to Moody’s Investors Services the Shadow Banking assets continue to decrease due to a strict and stronger regulation.
« The ratio of shadow banking assets as a share of China’s nominal GDP at the end of 2020 reached the lowest level since 2013, » said Lillian LI, a Moody’s Vice President and Senior Credit Officer.
-Ernest & Young (EY) indicated that the funds raised by A-Shares during IPO process record high in 2021.
“A total of 492 companies are estimated to be listed on the Chinese A-share market in 2021, up 25 percent year on year, and the proceeds raised expanded by 14 percent from a year ago to reach 536.3 billion yuan (about 84.26 billion U.S. dollars)” the report showed.
The EY report also indicated that Shanghai and Shenzhen markets are expected to rank 2d and 3rd in the world top IPO places.
-The State Administration of Foreign Exchange (SAFE) indicated that the Qualified Domestic Institutional Investors (QDII) quotas were granted to 174 chinese financial institutions amounted 157.52 Billion USD.
-The National Development and Reform Commission (NDRC) data showed that 382 new Public-Private Partnership (PPP) project registered since January 2021. In addition, the Planner approved 84 Fixed-Assets Investments (FAI) projects for a total of 757 Billion Yuan.
The CBIRC data on Insurance Sector
|Insurance Sector||Q1-Q2-Q3 2021|
|Average Solvency ratio||240%|
|Average Core Solvency ratio||227.3%|
|Property Insurance Cie Solvency Ratio||285.6%|
|Life Insurance Cie SR||231.6%|
|Reinsurance Cie SR||307.3%|
The CSRC approved IPO !
The China Securities Regulatory Commission. (CSRC) approved IPO of Caina Technology Co., Ltd., YiDong Electronics Technology Co., Ltd., and Ningbo Tianyi Medical Appliance Co., Ltd. will on the ShenZhen ChiNext market.
The CSRC declaration on US regulators.
On December 17, the China Securities Regulatory Commission (CSRC) indicate be ready to communicate with its US counterparts, the Securities and Exchange Commission and Public Company Accounting Oversight Board (PCAOB), on audit oversight cooperation and welcomed the attitudes of the US regulators to engage and search a solution to the issue.
« Currently, dialogues on audit oversight cooperation between the Chinese and U.S. regulators are ongoing and have yielded positive progress, » said the CSRC.
Customs Tariffs adjustments!
The Customs Tariff Commission of the State Council announced a further implementation of provisional tariffs lower than the most-favored-nation rates on 945 imported commodities. The new rates will be effectives on January 1 2022.
“Considering the development of domestic industries and changes in supply-demand conditions, the country will raise import and export tariffs from Jan. 1 on some commodities within the range of its accession commitments to the World Trade Organization,” said the circular.
In addition, China will continue to impose conventional rates in accordance with the Free Trade Agreements signed with 29 countries. For least developed countries having diplomatic relations with China, a preferential rate will be granted.
Central Bank Operations and declarations
|December 13||Reverse Repo||7-days||10 Billion Yuan||2.2%|
|December 14||Reverse Repo||7-days||10 Billion Yuan||2.2%|
|December 15||MLF||1-year||500 Billion Yuan||2.95%|
|Reverse Repo||7-days||10 Billion Yuan||2.2%|
|December 16||Reverse Repo||7-days||10 Billion Yuan||2.2%|
|December 17||Reverse Repo||7-days||10 Billion Yuan||2.2%|
People’s Bank of China (PBOC) Data
|Outstanding of Yuan funds for Foreign exchanges purposes||21.26||Trillion Yuan|
|— growth||+35.44 Bln Yuan||mom|
|FOREX Reservers||3.22||Trillion USD|
|— growth||+4.8 Bln USD||mom|
|Real Estate Market||November 2021||Units|
|New home prices in Tier 1 Cities*||+0.0%||mom|
|Resold Houses prices in Tier 1 Cities*||-0.2%||mom|
|New home prices in Tier 2 Cities||-0.4%||mom|
|New home prices in Tier 3 Cities||-0.3%||mom|
|Property Investment||13.73||Trillion Yuan|
|— Growth from 2019||+13.2%||over two years|
|*Beijing. Shanghai. Shenzhen and Guangzhou|
|Financial Institutions||at end of Q3||Units|
|Combined Assets||375.68||Trillion Yuan|
|Combined Liabilities||341.3||Trillion Yuan|
|Assets of Banking Institutions||+7.7%||yoy|
|Assets of Securities Institutions||+23.7%||yoy|
|Assets of Insurance firms||+8.4%||yoy|
- New measures focus on Industry Sector
The National Development and Reform Commission (NDRC) and the Ministry of Industry and Information Technology (MIIT) jointly unveiled new measures to boost the industrial economy high-quality development.
The main objectives are to ensure energy supply and security while stabilizing prices of bulk raw materials. In addition, the Demand potential should be fulfilled by implementing technological updates of enterprises and cultivate new business forms and models.
“China will step up safety measures in the industrial sector, improve policy systems in key regions, strengthen financing support for the manufacturing industry, and help firms navigate employment challenges.More efforts will be made to reduce burdens on medium and small companies and optimize market environments” as indicated in the released document.
- The Ministry of Finance on debt risks
The Ministry of Finance (MOF) declared that Local Government debt risks are under control. The Vice-Minister XU Hongcai indicated that the debt ratio stood at 93.6% below the international Standards of 100% -120%.
The Local Gvt outstanding of debt stood at 25.66 Trillion Yuan in 2020 while the total outstanding of debt of the Government (local + central) reached 46.55 Trillion Yuan. Then the Debt/GDP ratio stood at 45.8% below the 60% prudential limits of international standard practices.
XU Hongcai added that the ‘’hidden debt risks of local government have been significantly reduced and discovered.
- Data published !
|Retail Sales of Consumer Goods||4.1||Trillion Yuan|
|— growth from 2019||+9%||over 2 years|
|High-Tech manufacturing Output||+15.1%||yoy|
|Integrated Circuits output||+11.9%||yoy|
|— UR 16-24 yrs||14.3%|
|— UR 25-59 yrs||4.3%|
|Retail Sales of Consumer Goods||39.96||Trillion Yuan|
|Online Retail sales||11.87||Trillion Yuan|
|FAI Investment||49.4||Trillion Yuan|
|— growth from 2019||+7.9%||over 2 years|
|Profits of Industrial Firms||7.16||Trillion Yuan|
|FDI in actual use||1.04||Trillion Yuan|
|FDI in services Sector||+17%||yoy|
|FDI in High-Tech industries||+19.3%||yoy|
|Fiscal Revenue||19.13||Trillion Yuan|
|Tax revenue||16.45||Trillion Yuan|
|Income Tax Revenue||1.26||Trillion Yuan|
|Central Gvt Collection||8.84||Trillion Yuan|
|local Gvt Collection||10.29||Trillion Yuan|
|Fiscal Spending||21.39||Trillion Yuan|
|Spending on Education||+5.1%||yoy|
|Spending on Science and Technology||+5.9%||yoy|
|Spending on Social Security and Unemployment||+4.9%||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