16 Jan 2020

China's 2019 GDP growth estimated to be 6%

China's GDP is estimated to expand over 6% y-o-y in 2019, according to Chinese Vice Premier Liu He. The latest data indicates a better-than-expected economic outlook, according to Liu, noting that the economy has been generally stable and is one of the fastest-growing economies in the world in 2019.

Source: aastocks.com

15 Jan 2020

Continued coverage: The Greater Bay Area

Guangdong becomes the first province in China to generate GDP of over 10 trillion yuan (US$1.45 trillion). In 2019, the province records an estimated 10.5 trillion, up 6.3% y-o-y. The province sees its imports and exports reached 7.14 trillion yuan, down 0.3% y-o-y. 

Source: aastocks.com

14 Jan 2020

China pension funds remain stable

China's social insurance system remains stable in 2019, with 967 million people covered by pension schemes as of end 2019. About 205 million are enrolled in unemployment insurance, and around 255 million people hold work-related injury insurance. The gross revenue of the three kinds of insurance totalled 5.82 trillion yuan (US$844 billion) in 2019.  

Source: Ministry of Human Resources and Social Security

10 Jan 2020

China, Laos sign agreement on local currency cooperation

China and Laos have signed an agreement on bilateral monetary cooperation to enhance the use of local currencies in trade and investment, according to the People's Bank of China (PBoC).

Source: PBoC

08 Jan 2020

Chinese regulators to reduce fundraising cost of SMEs

Chinese regulators will soon roll out rules to reduce the cost of small and medium-sized enterprises (SMEs) raising funds, according to the Financial Stability and Development Committee under the State Council. Differentiated regulation will be applied and the fundraising means will be further diversified.  

Source: aastocks.com

07 Jan 2020

China to open up banking industry

China will further open up the banking industry by removing some restrictions of foreign banks operating in the country. New rules will be rolled out to enable foreign banks setting up both branches and foreign legal-person banks in China. For foreign banks looking to operate a business in China, the requirement on their total asset will be removed. For joint-venture banks, there will be more flexibility in selecting the controlling shareholders.  

Source: aastocks.com

03 Jan 2020

China to diversify commercial health insurance supply

The China Banking and Insurance Regulatory Commission (CBIRC) is looking to further diversify commercial health insurance products through reforms and innovation to meet the growing demands. Health insurance premiums for the first 10 months of 2019 grew 30.7% y-o-y to 614.1 billion yuan (US$88.18 billion), and the regulator expects the market volume to reach over 2 trillion yuan by 2025. Reforms of insurance institutions and technological innovation in commercial health insurance will be supported to provide more diverse insurance products. 

Source: CBIRC

02 Jan 2020

China implements new regulation to optimize business environment

China started to implement the regulation on optimizing the business environment on Jan 1, 2020. The regulation stipulates that regulators will provide equal protection to all market entities, and protect their managerial autonomy, property rights and other legitimate rights and interests. It also clarifies rules regarding solid implementation of tax and fee reduction policies, and easing financing difficulties. 

Source: Xinhua

20 Dec 2019

Continued coverage: The Greater Bay Area

The People's Bank of China (PBoC) will raise the daily cross-border remittances limit on renminbi transfers by individuals from Macao to mainland Chinese accounts under the same name to 80,000 yuan (US$11,424) from 50,000 yuan. The move, approved by the State Council, is to meet the renminbi clearing demand of Macao residents and facilitating trade and economic. 

Source: Xinhua

19 Dec 2019

Continued coverage: The Greater Bay Area

Macau will be included as an investable overseas market for Chinese insurers, according to the China Banking and Insurance Regulatory Commission (CBIRC). This move will support financial market development in the Greater Bay Area (GBA). The investment activities should follow the regulation on insurers investing overseas.  

Source: CBIRC

18 Dec 2019

China to deploy reform measures for NEEQ

The regulators have finished consulting public opinions on revised rules on China's National Equities Exchange and Quotations (NEEQ) and detailed measures are expected to be implemented in the first half of 2020. China Securities Regulatory Commission announced the major reform measures in late October to better orient the NEEQ to the needs and features of small and medium-sized enterprises (SMEs) and support high-quality growth of the real economy. 

Source: Xinhua

17 Dec 2019

China's fiscal revenue up 3.8% in first 11 months

China's fiscal revenue increased 3.8% y-o-y to around 17.9 trillion yuan (US$2.6 trillion) in the first 11 months of 2019. The central government collected about 8.61 trillion yuan in revenue during the period, up 4.8% y-o-y, while local governments saw revenue up 3% to about 9.29 trillion yuan, according to the country's Ministry of Finance (MOF). 

Source: MOF

16 Dec 2019

China suspends planned additional tariffs on some US products

China suspended the planned additional tariffs on some US products to be implemented on Dec 15, the Customs Tariff Commission of the State Council says. The suspension covers the 10% and 5% additional tariffs, respectively, on the imported products, according to the commission. The country will continue to suspend its additional tariffs on American-made vehicles and auto parts. 

Source: Xinhua

13 Dec 2019

China to establish big data system for comprehensive transport by 2025

China aims to enhance the level of digitization of the transport industry and expand the application of big data in all the domains of the transport industry by 2025, according to an outline released by the Ministry of Transport (MOT). The outline stressed the need to standardize the process of using the traffic data and promote the sharing of big data with other departments such as the Ministry of Public Security, the Ministry of Natural Resources and the Ministry of Ecology and Environment. 

Source: Xinhua

12 Dec 2019

PBoC to roll out registration mechanism for financial mobile application

Chinese regulators penalized 100 mobile applications this month, with financial apps taking a major part. Chinese should roll out a registration mechanism to enhance supervision over the financial applications.

Source: aastocks.com

11 Dec 2019

China's inflation stays within annual target

China's consumer price index (CPI) rose by an average of 2.8% y-o-y in the first 11 months. This is on track to meet the target of 3% set by the government. The CPI rose 4.5% y-on-y in November, expanding from 3.8% in October. The hike in CPI was mainly driven by food prices, according to the National Bureau of Statistics (NBS). 

Source: Xinhua

10 Dec 2019

Continued coverage: The Greater Bay Area

 China Banking and Insurance Regulatory Commission (CBIRC) will enhance the communication with regulators in Hong Kong and Macau, improving the market admission mechanism of the insurance industry in the Greater Bay Area (GBA). This action will ensure Hong Kong insurance companies entering the GBA market more smoothly, according to CBIRC.

Source: aastocks.com

09 Dec 2019

China launches iron ore options on DCE

Iron ore options are listed today on the Dalian Commodity Exchange (DCE). This will help derivative products better serve the iron and steel industry and promote DCE as a global pricing center for iron ore. More than 170 overseas clients from 15 markets have participated in the trade since China opened the DCE iron ore futures to international investors in May 2018. 

Source: Xinhua

04 Dec 2019

Continued coverage: The Greater Bay Area

China will release a negative list for Hong Kong and Macau investors in the cross border trade in services, aiming to support the open-up of this sector in Guangdong. The province also plans to set up global centres for traceability, customs declaration, and logistics.  

Source: aastocks.com

03 Dec 2019

China pilots blockchain in e-government service

In order to improve the e-government services, China is now piloting the Blockchain-based Service Network (BSN) on the AI-powered City Brain platform in Hangzhou. Co-launched by the State Information Center, China Unionpay and China Mobile, the BSN is a nationwide infrastructure platform of blockchain-based service that crosses the public network, as well as multiple regions and organizations. 

Source: Xinhua

02 Dec 2019

China to seek public comments on new consumption tax rules

China will issue a draft regulation on the consumption tax by the under of this year, seeking public comments. The tax aims to reduce the consumption of certain goods such as luxury items, unsustainable energy, and high pollution and high energy consumption products.  

Source: yicai.com

29 Nov 2019

China to revise regulations on securities

China Securities Regulatory Commission (CSRC) says that the regulators have been accelerating the pace of revising the regulations on securities. Rules relating to enhancing the supervision over fraud and listing company information disclosure will also be improved. 

Source: cnstock.com

28 Nov 2019

Chinese banks eye stronger governance of data

More technological standards are in the pipeline to enhance data governance of the banking industry, according to the China Banking Association. As banking is a data-driven industry, stronger data governance gives a strong boost to lenders' efficiency and competitiveness, according to the China Banking Association (CBA). The CBA will work on tech standards to facilitate data analysis, security and quality management, forming an ecosystem of big data governance.  

Source: Xinhua

27 Nov 2019

China to reform pension to tackle aging issue

Chinese regulators have decided that the country should speed up the establishment of a national system to operate the Basic Retirement Security plan, which sustains Chinese retirees. Under the new mechanism, local authorities running the fund would hand over its management to central authorities so that Beijing can collect the money and plan its spending as a whole.

Source: aastocks.com

20 Nov 2019

China's green finance market expands

China's green finance market has maintained steady expansion last year with product and service innovations increasing, according to an annual report on China's green finance development released by the People's Bank of China (PBoC). Green bond issuance exceeded 280 billion yuan (US$40 billion) last year, while outstanding green loans reached 8.23 trillion yuan, up 16% year-on-year. 

Source: PBoC

19 Nov 2019

China's FDI inflow up 6.6% in the first ten months

Foreign direct investment (FDI) into the Chinese mainland expanded 6.6% year-on-year to 752.41 billion yuan (US$107.07 billion) in the first 10 months of the year, according to the Ministry of Commerce (MOC). The FDI inflow stood at US$110.78 billion during the period, up 2.9% year-on-year.  

Source: Xinhua

18 Nov 2019

Continued coverage: The Greater Bay Area

China's economic planner is working with interested parties to accelerate the approval of the development projects of the Greater Bay Area (GBA). A comprehensive planning system will be gradually established to take care of the projects relating to the GBA, covering aspects such as infrastructural connectivity, ecological and environmental protection, industrial development and inter-city railway, according to the National Development and Reform Commission (NDRC).  

Source: NDRC

Beijing-Shanghai high-speed railway to list on A-share

The Beijing-Shanghai High-Speed Railway Co Ltd (BSHSR), one of China's busiest high-speed rail lines, will be listed on China's A-share market at the Shanghai Stock Exchange next week, according to the China Securities Regulatory Commission (CSRC). The IPO will offer no more than 7.557 billion stocks and raise 50 billion yuan (US$7.13 billion). Established in 2007, the BSHSR's net profit hit about 10.25 billion yuan in 2018, according to its prospectus. 

Source: Xinhua

14 Nov 2019

China records slowest fixed-asset investment growth since 1998

China's fixed-asset investment grew 5.2% year-on-year in the first 10 months of this year, according to the National Bureau of Statistics. This records the slowest growth since the statistics became available since 1998. Fixed-asset investment includes capital spent on infrastructure, property, machinery and other physical assets. In the first 10 months of 2019, total investment amounted to 51.09 trillion yuan (US$7.3 trillion), and the growth is 0.2% down compared to that of the first nine months. The private sector's investment increased 4.4% to 29.15 trillion yuan, 0.3% slower than that for the first nine months. Investment in high-tech manufacturing and high-tech services rose 14.5% and 13.7% year-on-year, respectively. 

Source: Xinhua and hket.com

13 Nov 2019

China to develop 6G

A launching ceremony for developing 6G technology was jointly held by relevant departments in China recently, where a work team and an expert R&D team were established. At present, 5G has been applied to commercial use, and the next generation of telecommunication technology is expected to emerge around 2030.

Source: cnstock.com

12 Nov 2019

China's Singles Day sales hit US$38.3 billion

Taobao, Chinese e-commerce channel owned by Alibaba, launched its 10th annual online shopping promotion on November 11, a day celebrated by many Chinese young people as Singles Day. The sales on Tmall, a section of Taobao, hit 268.4 billion yuan (about US$38.3 billion) as of November 11. More than 22,000 overseas brands from 200 countries and regions have participated this year, according to Alibaba. Singles Day sales on Tmall reached 213.5 billion yuan last year. 

Source: Xinhua

11 Nov 2019

Second CIIE concludes with US$71.13 billion tentative deals

The second China International Import Expo (CIIE) concluded on November 10, with US$71.13 billion worth of tentative deals reached for one-year purchases of goods and services. The amount rose 23% year-on-year compared to last year. A total of 181 countries, regions and international organizations attended the expo, and more than 3,800 enterprises participated in the exhibitions.

Source: Xinhua

08 Nov 2019

Continued coverage: The Greater Bay Area

Hong Kong residents now can purchases homes in the nine Guangdong cities in the Greater Bay Area as Chinese regulators remove the additional requirements so that Hong Kong residents share the same policy with local residents. Chinese property developers say that there is a notable increase in the number of Hong Kong people purchasing properties in the mainland Chinese cities in the GBA, and sees the trend to be enhanced in cities with more convenient trasnportation.  

Source: sina.com.cn

06 Nov 2019

Alibaba to seek listing approval in Hong Kong next week

Alibaba will seek a listing approval in Hong Kong next week, with CICC and Credit Suisse being sponsors, aiming to raise 10 to 15 billion US dollars with the listing. Alibaba previously was said to seek listing in Hong Kong in August this year. 

Source: The Asset

Alipay allows top-up methods without Chinese bank account

Alibaba's mobile payment Alipay has been one of the major payment methods in China now. The platform which used to require linking to Chinese bank accounts now onboarded a new feauture called Tour Pass which allows adding funds from international credit cards or debit cards. Meanwhile, Ant Financial, operator of Alipay, is considering merging its mobile payment business in the South East Asia with Grab, the biggest taxi-hailing app. So far there are more than 150 mobile payment platforms in the SEA. 

Source: Abacus and hket.com

05 Nov 2019

China to further ease market access for foreign investment

China will further ease market access for foreign investment and shorten the negative list, according to Chinese President Xi Jinping. The country will continue to improve the business environment to make it more market-oriented, law-based and internationalized, Xi says during a keynote speech at the the second China International Import Expo. The country will also further cut the tariffs. 

Source: aastocks.com

04 Nov 2019

Chinese internet firms post double-digit growths in revenue, profits

The total revenue of China's internet and related services sectors reached 860.4 billion yuan (US$122.26 billion) during the first nine months this year, up 19.7% year-on-year, according to the Ministry of Industry and Information Technology (MIIT). Information services were the largest revenue contributor, generating an income of 566 billion yuan which accounts for 65.8% of the total revenue of these sectors. Meanwhile, the sectors' spending on research and development reached 34.6 billion yuan, up 18.3% year-on-year.

Source: Xinhua

Measures rolled out to further boost cross-strait economic and cultural ties

The State Council Taiwan Affairs Office and the National Development and Reform Commission (NDRC) have unveiled measures to further promote the economic and cultural exchanges and cooperation across the Taiwan Strait. There are 26 measures involved, about half of which are about ensuring Taiwan enterprises in mainland China receiving the same treatment as local enterprises, covering aspects including investing in or participating in projects of major technological equipment, 5G, circular economy, civil aviation, theme parks and new types of financial institutions. The same treatment for enterprises from Taiwan also applies to policies of financing, trade remedies, export credit insurance, and import and export facilitation.

Source: NDRC

01 Nov 2019

FDI into China records up 4% y-o-y in H1 2019

Although the global economy is facing unprecedented challenges such as the slowed-down economic growth and the rising trade tensions, Foreign direct investment (FDI) inflows into China recorded a 4% growth year-on-year to US$73 billion during the first six months of this year, according to the country's Organization for Economic Cooperation and Development. Chinese regulators will continue to enhance policy transparency and create a fair market environment.  

Source: aastocks.com

30 Oct 2019

Global center for digital finance launched in China

China's National Internet Finance Association (NIFA) and the World Bank have jointly launched the Global Center for Digital Finance in Hangzhou, China. The centre is expected to become an international knowledge-sharing platform for digital finance, providing technical support for developing countries and emerging markets. 

Source: Xinhua

24 Oct 2019

China holds the first sustainable investment summit

China's first sustainable investment summit was launched in Beijing today. The country calls for advancing the implementation of the 2030 Agenda for Sustainable Development which was adopted by all United Nations Member States in 2015.

Source: Xinhua

23 Oct 2019

China to reduce the financing cost of SMEs

Financial institutions providing services to privately owned and small and medium-sized enterprises (SMEs) will be supported by regulators, and the financing costs will be reduced, according to a new regulation that will be implemented on January 1, 2020. Financial institutions such as commercial banks will be encouraged to lending money to the qualified enterprise.

Source: State Council of the People's Republic of China

22 Oct 2019

Continued coverage: The Greater Bay Area

Guangdong Province reports its GDP up by 6.4% on year to 7.72 trillion yuan (US$1.09 trillion U.S. dollars) in the first three quarters of 2019. Beijing’s GDP growth during the same period stands at 6.2%. Guangdong's economy has maintained overall stability, with the growth of main economic indicators kept within an appropriate range, according to the provincial bureau of statistics. A breakdown of the data showed the output of the service sector rose 7.9%, outpacing the 3.8% increase in the primary industry and the 4.6% rise in the secondary industry.

Source: Xinhua

21 Oct 2019

Continued coverage: The Greater Bay Area

The local China Banking and Insurance Regulatory Commission (CBIRC) in Shenzhen is consulting the market regarding setting up an innovative cross-border insurance service centre in the Qianhai Area. Through the entities operated in this centre, Overseas insurers will be able to provide services including insurance consultancy, distribution and claim.

Source: aastocks.com

US$113 billion Chinese pension put into investment

China's Ministry of Human Resources and Social Security has announced that 799 billion (US$113 billion) of pension funds have been put into investment by the end of September. This number has increased by 12% compared to June this year.

Source: aastocks.com

18 Oct 2019

China's GDP grows 6.2% in first three quarters

China's GDP increased by 6.2% on year during the first three quarters of 2019 to about 69.78 trillion yuan (US$9.87 trillion), according to the country's National Bureau of Statistics (NBS). The country's economy has maintained overall stability, the statistical authority says, while acknowledging that China faces downward pressure amid slower global economic growth and more external uncertainties.

Source: Xinhua

Overseas assets of Chinese central SOEs reach US$ 1.1 trillion in 2018

Overseas assets of China's central state-owned enterprises (SOEs) reached 7.6 trillion yuan (US$1.1 trillion) by the end of last year, according to the country's State-owned Assets Supervision and Administration Commission (SASAC). China's central SOEs have more than 11,000 overseas units, which were located in 185 countries and territories. In 2018, overseas revenue of the central SOEs stood at 5.4 trillion yuan, while profits totalled 131.89 billion yuan.  

Source: Xinhua

17 Oct 2019

China facilitates overseas institutional investors to invest in interbank bond market

The People’s Bank of China (PBoC) and State Administration of Foreign Exchange (SAFE) have revised the regulation to further facilitate foreign institutional investors to invest in the country's bond market. Non-transactional transfer of bonds under QFII/RQFII and China Interbank Bond Market Direct scheme (CIBM) will be allowed within one single foreign institutional investor. The definition of one single institutional investor is also further clarified: if a foreign institutional investor opens multiple accounts under the same managed product name, it should be treated as a single product.This move aims to attract more foreign capital to the onshore bond market.

Source: SAFE

16 Oct 2019

Revised regulations on foreign banks and insurers rolled out

The country's State Council has announced the revision of regulations on foreign banks and insurers this week.

Source: aastocks.com

10 Oct 2019

Internet security market to exceed US$28 billion by 2025

China will support the companies in the internet security sector, aiming to generate a total market cap of 200 billion yuan (US$28 billion) by 2025, according to Ministry of Industry and Information Technology (MIIT). 

Source: MIIT

02 Oct 2019

China's high-tech manufacturing investment expands

China's investment in the high-tech manufacturing industry further expands by 12% in the first eight months of this year, according to the country's National Development and Reform Commission (NDRC). Investment in medical equipment and manufacturing of apparatus and instruments grows by 17.7%, and that in electronic and communication equipment goes up by 14.5% y-o-y during the period. 

Source: NDRC

26 Sep 2019

China launches world's first stainless steel futures

Shanghai Futures Exchange started trading yuan-denominated stainless steel futures yesterday, becoming the first of its kind globally. The launch of the stainless steel futures helps provide an open, continuous and transparent price signal and an effective risk management tool for companies in the industrial chain, according to the Shanghai Futures Exchange. 

Source: Xinhua

25 Sep 2019

China's tax and fee cuts reach US$189 billion

In the first seven months of this year, the tax and fee cuts have saved enterprises and individuals about 1.35 trillion yuan (US$189 billion), according to the Ministry of Finance (MOF). During the period, taxes were reduced by a total of 1.17 trillion yuan. The private sector accounts for 63% of the tax relief. Manufacturing enterprises account for 31% of the total tax reduction.

Source: MOF

23 Sep 2019

China's bond issuance increases in August

The total value of bond issuance in China last month totalled 4.4 trillion yuan (US$622.3 billion), up from 3.5 trillion yuan in July, according to the People's Bank of China (PBOC). Being the world's third-largest bond market, China issued 40.8 trillion yuan of bonds in 2018, up 12.9% from the previous year, according to PBoC.  

Source: Xinhua

20 Sep 2019

China to further cut LPR

The People's Bank of China (PBoC) has announced that the one-year loan prime rate (LPR), which are used by banks as the major lending rate reference when issuing loans is further cut by 5 bps to 4.2% today. This is the second month in a row that PBoC cuts the LPR. On August 20, the one-year LPR is cut to 4.25%.  

Source: PBoC

19 Sep 2019

MOF to issue an additional 4.5 billion yuan sovereign bonds in Hong Kong

 Ministry of Finance will issue an additional 4.5 billion (US$634 million) sovereign bonds in Hong Kong next week, using the Central Moneymarkets Unit (CMU) under the Hong Kong Monetary Authority.

Source: cnstock.com

18 Sep 2019

China's outbound investment up 2.7% from January to August

China's non-financial outbound direct investment (ODI) in 159 countries and regions amounted to 493.09 billion yuan (US$70 billion) in the first eight months of this year, up 2.7% y-o-y, according to the Ministry of Commerce (MOC). 

Source: MOC

17 Sep 2019

SAFE to issue new regulations regarding QFII, RQFII

The State Administration of Foreign Exchange (SAFE) is working on rolling out new regulations servicing their decision of removing the quota limits of QFII and RQFII. Offshore money accounts for a low portion in both China's equity and bond markets, according to SAFE, noting that this move will attract long term investment from overseas investors.  

Source: Xinhua

16 Sep 2019

China's property investment growth slows down

The investment in developing property in China reached 8.46 trillion yuan (US$1.2 trillion) during the first eight months, recording an increase of 10.5% y-o-y in 2018 of this year, down from the 10.6% registered in the first seven months, according to China's National Bureau of Statistics. Chinese regulators have been tightening the regulation on the real estate market and it has become harder for property developers to borrow money from the banks.  

Source: aastocks.com

China to control the risks of small-to-medium-sized banks

Chinese regulators will issue a series of rules to enhance the supervision on small-to-medium-sized banks, as well as financial institutions such as local asset management companies and small lending platforms. In the meantime, the national platform of risk control is under construction, aiming to further regulate the financial market. 

Source: Economic Information Daily

13 Sep 2019

CSRC issues guideline for supervising venture capital funds

The guideline for stock exchanges supervising venture capital funds is rolled out by the China Securities Regulatory Commission (CSRC), saying that the bourses should form specialized rules for venture capital funds. The specialised rules should publicise the supervisor of such funds and the detailed duties and supervision process.  

Source: aastocks.com

12 Sep 2019

Continued coverage: The Greater Bay Area

 A new index tracking the performance of the Greater Bay Area (GBA) healthcare industry is launched this week. The index covers 30 stocks in the GBA healthcare industry.

Source: aastocks.com

11 Sep 2019

CSRC reveals plans for capital market reform

China Securities Regulatory Commission (CSRC) has listed 12 priorities of deepening reform China's capital market, China will support the new science and technology innovation board (STAR) and encourage listed companies to enhance their quality, according to the plan. The country will further reform ChiNext, China's NASDAQ-style board of growth enterprises, and see faster reform in China's National Equities Exchange and Quotations (NEEQ).  

Source: CSRC

10 Sep 2019

SAFE removes QFII RQFII quota ceilings

The State Administration of Foreign Exchange (SAFE) announces that the quota limit for QFII and RQFII are removed. The regulator has been working on opening up the capital market and enhancing the reform of schemes such as QFII and RQFII. This move will provide more convenience to foreign investors and boost Chinese bond and equity markets.

Source: hket.com

Shanghai to issue new rules to attract foreign investment

Shanghai plans to further open up the market to attract foreign investors by issuing 26 new rules. Shanghai aims to become the top choices for foreign investors when it comes to overseas investment.  

Source: aastocks.com

09 Sep 2019

China's NEEQ revenue up 6.82% in H1

China's National Equities Exchange and Quotations (NEEQ) saw its revenue increase by 6.82% in the first half of this year. The total revenue of 9,024 firms listed on NEEQ as of August 30 stood at 851.78 billion yuan (US$119.8 billion), up 6.82% compared to the same period last year.  

Source: Shanghai Securities News

SASAC to cooperate with Shanghai government

State-owned Assets Supervision and Administration Commission (SASAC) has signed a cooperative agreement with the Shanghai government. At least 10 central state-owned enterprises (SOEs) will roll out projects and setting up innovative institutions in Shanghai, boosting sectors such as integrated circuit, AI, biopharmaceutics and new energy.  

Source: SASAC

06 Sep 2019

P2P lending to be included in China's credit system Xinhua

China's central bank will include P2P online lending firms in its credit reference system in a move to crack down on irregular practices. P2P lending platforms in operation shall provide certain information such as online lending interest rates. Certain data of those platforms out of operation will still be collected.  

Source: Xinhua

05 Sep 2019

State Council of China hints at general rate cut

Premier Li Keqiang held a State Council meeting on September 4 2019, pointing out several upcoming key policy measures. The State Council noted that local government bond issuance should be sped up and it will timely apply general rates cut and rate cut towards specific sectors as well for financial inclusion. It is expected that the rate cut may take place in September 2019.  

Source: Yicai

04 Sep 2019

Chinese property developers offshore financing amount shrank in August

As China tightened the financing rules for property developers in August 2019, the offshore financing amount has dropped significantly compared to July 2019. Since July 2019, multiple restrictions on USD bond and REITs have been imposed by the regulators. In early August 2019, 32 cities were named to be examined on financing towards property developers.  

Source: cs.com.cn

03 Sep 2019

Chinese listed real estate developers sales slow down in H1 2019

70 major listed Chinese real estate developers have generally seen a drop in their house sales in the first half of 2019, according to a research entity under Sina.com. Top five real estate developers accounted for 43.7% of total revenue of the 70 companies. China Overseas, Country Garden and China Evergrande ranked top three in terms of net profit attributable to shareholders in the first half.  

Source: sina.com

02 Sep 2019

Overseas institutions receives US$111.38 billion of China QFII quota

A total of 292 overseas institutions have received quotas amounting to about US$111.38 billion under China's Qualified Foreign Institutional Investors (QFII) program to move money into China, according to the State Administration of Foreign Exchange (SAFE). As of Aug 30, the quota in the RMB Qualified Foreign Institutional Investors (RQFII) program came in at 693.3 billion yuan (US$97.8 billion). 

Source: SAFE

30 Aug 2019

Chinese regulators determined to regulate property lending

Chinese regulators have been tightening the real estate market by raising the mortgage loan interest rate and restricting the bank lending to real estate developers. However, some of the small-to-medium local banks have been raising funds for illegal property developers and lending money to unqualified property developing projects, according to the China Banking and Insurance Regulatory Commission (CBIRC), noticing that the banks should manage the credit risks.

Source: CBIRC

New measures to roll out to support the development of Shanghai FTZ

More supportive regulations and measures will be rolled out to support the development of the Shanghai free trade zone (FTZ). Qualified enterprises will be supported to raise funds; certain enterprises in sectors such as integrated circuit, AI, bio-pharmaceutics, aerospace and new energy automobiles will be supported to do IPOs and might enjoy favourable taxation policies.  

Source: aastocks.com

29 Aug 2019

China tightens the issuance of property development loans

Amid Chinese regulators' actions of tightening the supervision on the real estate market, many banks have received notices from the regulators, saying that the property development loan issuance shall not exceed that of March this year. The property development loan balance will be reduced from 11.04 trillion yuan (US$1.54 trillion) to at most 10.85 trillion yuan, and might be further reduced.

Source: new.qq.com

Stock connects fuel inflow of foreign capital

Foreign capital daily inflows into China's A-share market via the Stock Connect programs hit a nine-month record high this week. On August 72, 1.3 billion yuan (US$1.6 billion) flowed into the A-share market through the northbound trading of the Stock Connects between mainland China and Hong Kong bourses. Analysts attributed the jump in foreign inflow mainly to the weighting increase of A-share constituents in MSCI indexes.  

Source: Xinhua

28 Aug 2019

China issues 20 new measures to boost consumption

To boost consumption in China and energize the economy, China's State Council has rolled out 20 new measures. The automobile market is among the markets that will benefit more from the new measures. The purchase restriction of the automobiles in certain cities might be removed. The "nighttime economy" (business activities between 18:00 and 6:00 in the service industry) will also be boosted.

Source: Xinhua

China to form 6 new FTZs

The overarching plan for setting up new free trade zones (FTZs) in Shandong, Jiangsu, Guangxi, Hebei, Yunan, and Heilongjiang has recently been rolled out by China's State Council. The FTZ in Shandong will explore new practices of economic cooperation among China, Japan and Korea.  

Source: State Council of the People's Republic of China

27 Aug 2019

PBoC calls for accelerating LPR-based lending mechanism

After releasing a plan to reform the country's loan prime rate (LPR) mechanism, the People's Bank of China (PBoC) told 24 major financial institutions to adopt the new the LPR mechanism as soon as possible amid a reform to reduce financing costs for enterprises. Introduced in 2013, the LPR functions as a market-based reference for lenders to set their loan interest rates. Banks are expected to take the LPR as the major lending rate reference when issuing loans. 

Source: Xinhua

22 Aug 2019

More measures planned to ease investment hurdles

China's Ministry of Commerce, the General Administration of Customs and China National Intellectual Property Administration will hold three closed-door meetings regarding the implementation of the Foreign Investment Law, customs clearance facilitation and the protection of intellectual property soon. China will continue to facilitate foreign investment and trade while stimulating consumption amid a complicated and slowing global economy. 

Source: aastocks.com

21 Aug 2019

China's mutual funds to introduce side-pocketing to protect investors

The China Securities Regulatory Commission (CSRC) has drafted a guideline for a side pocket mechanism in mutual funds and started to seek public opinions. A side pocket is a mechanism often used by a fund to keep illiquid, hard-to-value, and often highly risky assets separate from its other assets. The mechanism will enhance liquidity risk management and protect investors.  

Source: CSRC

Securities firms in China post surging profits

 Net profits of China's 131 listed securities companies during the first half of 2019 doubled from the same period a year earlier, amounting to 66.7 billion yuan (US$9.52 billion U.S. dollars), according to the Securities Association of China. These securities firms generated 178.94 billion yuan in operating revenue during the same period, up 41% y-o-y.

Source: Xinhua

20 Aug 2019

New digital currency to launch by Chinese central bank

The People's Bank of China is almost ready to launch an official digital currency after five years of research, according to an official from the central bank. Private institutions are expected to participate more in creating the government-backed digital currency. Experts predicted that if things go well, the Chinese government-backed digital currency may come out earlier than the official launch of Facebook's digital currency "Libra". 

Source: aastocks.com

PBoC LPR reform to spur small businesses

 Borrowing costs will become lower for small and privately-owned companies in China starting today through a key loan prime rate (LPR) mechanism reform carried out by the People's Bank of China. The new one-year LPR is 6 bps lower than the one-year LPR before the PBOC’s announcements.

Source: aastocks.com

19 Aug 2019

Shenzhen to form model zone for new practices of one country, two systems

The State Council of China says that Shenzhen will be supported to form a model zone and a series of supportive measures are expected to roll out. One of the key missions of the zone will be deploying the Greater Bay Area and develop new practices for "one country, two systems". Shenzhen will promote the mutual recognition of funds (MRF) between mainland China and Hong Kong and enhance the connectivity between mainland Chinese and Hong Kong/Macau financial markets.

Source: State Council of the People's Republic of China

More privately-owned banks to be launched in China

Regulators are developing policies to facilitate privately-owned banks' healthy growth in China. Amid this policy push, more local privately-owned banks are expected to be launched in China. A number of such banks are waiting for approval from the regulators. 

Source: Economic Information Daily

16 Aug 2019

Online retail sales up by 17.8% in first half

China generated 4.82 trillion yuan (US$683 billion) in online retail sales during the first half of this year. Online retail sales surged 17.8% y-o-y in the first half, accounting for nearly 20% of the overall retail sales of consumer goods.  

Source: cnstock.com

China's outbound investment up 3.3%

Non-financial outbound direct investment (ODI) in 153 countries and regions amounted to 432.92 billion yuan (US$61.6 billion) in the first seven months, up 3.3% y-o-y, according to the Ministry of Commerce. 

Source: Ministry of Commerce

15 Aug 2019

Shanghai launches new policies to attract global enterprises

Being the home to more than 700 regional headquarters of multinational corporations, Shanghai will issue new policies to attract more regional headquarters to settle in the city and to expand their functions. The requirement for the total assets of parent companies of regional headquarters has been adjusted to US$200 million, according to the policies.

Source: Xinhua

13 Aug 2019

China to roll out an updated negative list for foreign investments

 China will roll out a new negative list for foreign investors by September. The Chinese regulators have been further opening up the market and the new list will generate more convenience for foreign investors coming to China and simpler administration process.

Source: State Council of the People's Republic of China

12 Aug 2019

China to launch information platform for supply chain finance

 China will launch a platform for supply chain finance to facilitate information disclosure of medium-sized, small and micro enterprises, data from an industry association showed. The platform will collect, organize and process information of these companies from related supply chains and industry chains, according to the National Internet Finance Association of China (NIFA). The platform will provide certain companies with low-cost and sustainable financial services while enabling financial institutions to identify clients and control the risks of lending, according to NIFA.

Source: Xinhua

07 Aug 2019

SWIFT sets up wholly-owned enterprise in Beijing

The Belgium-based financial messaging services provider SWIFT set up a wholly-owned enterprise in Beijing this week amid China's further opening of its financial market. The move makes RMB the third international currency accepted by SWIFT after the dollar and the euro. The company will promote wider international use of RMB, and increase connectivity between the Chinese financial industry and the international market.  

Source: Xinhua

06 Aug 2019

PBoC to issue US$4.3 billion bills in Hong Kong

The People's Bank of China (PBoC) has announced that it will issue 30 billion yuan (US$4.3 billion) of central bank bills in Hong Kong on August 14. Among the total, 20 billion yuan will mature in three months and 10 billion yuan will mature in a year. This happens after renminbi weakened 458 pips to 6.9683 against the US dollar.  

Source: Xinhua

02 Aug 2019

PBoC supports the fundraising of small firms

People's Bank of China (PBoC) has lifted its re-lending quota by 50 billion yuan (US$7.25 billion) to support the fundraising of small-to-medium enterprises and private-owned businesses. The re-lending quota will be granted to five types of local financial institutions-city commercial banks, rural commercial banks, rural cooperative banks, village banks and private banks.  

Source: aastocks.com

29 Jul 2019

China to enhance Shanghai Pudong New Area's function

In order to enhance the function of the Pudong New Area, the Shanghai Government has rolled out a new developing plan to further open up the area. The supporting initiatives will bring breakthrough and make a difference in the area, according to the government.  

Source: aastocks.com

China's ABS sees year record high in June

China's asset-backed securities (ABS) hit an annual record in June in terms of total asset under management (AUM), according to the Asset Management Association of China (AMAC), noting that 100 batches of ABS products worth 107.5 billion yuan (US$15.6 billion) were registered in June. By the end of June, 132 institutions have registered for 2,244 batches of ABS products, accounting for 3.04 trillion yuan.  

Source: Xinhua

26 Jul 2019

Annuity generates opportunities in China's asset management industry

The annuity from provinces including Shandong, Hubei, Hunan, as well as Beijing and central government and state-owned enterprises, has been put into investment, according to a source talking to cnstock.com. This generates new markets in the asset management space, with more provinces putting annuity into operation.  

Source: cnstock.com

China to further support SME development

Despite a strong momentum, Chinese small-to-medium-sized enterprises (SMEs) are still facing challenges from the economic pressures. Chinese regulators will roll out more supportive measures such as tax cuts and fee reductions. The measures will help to vitalize the SME industry.  

Source: aastocks.com

25 Jul 2019

China to expect more mixed-ownership reforms

More state-owned enterprises (SOEs) reforming projects will be rolled our during the second half of this year. The fourth batch of SOEs will soon roll out plans for mixed-ownership reforms.

Source: aastocks.com

23 Jul 2019

China's STAR market to drain limited funds from other boards

China's sci-tech innovation board (STAR) will not drain large amounts of funds from other domestic boards as the turnover on the new board accounted for a small proportion in combined trading volume of the A-share market. The 48.5-billion-yuan (US$7.06 billion U.S. dollars) trading volume, reported by the first batch of 25 firms that debuted at the new board on the first trading day, is less than 10% of the total turnover of China's A-share market.  

Source: Shanghai Securities News

Continued coverage: The Greater Bay Area

Shenzhen Futian District has rolled out detailed action plans under the Greater Bay Area (GBA) program. The city will implement 48 assignments and forming a hub for innovation and intelligence.  

Source: aastocks.com

22 Jul 2019

China sees more defaults in corporate bonds

There are at least nine Chinese corporate bonds defaults happened in July. So far this year, there are 91 bond defaults in all, accounting for 49.29 billion yuan (US$7.16).  

Source: 21jingji.com

China's new tech board launched

The sci-tech innovation board (STAR), China's latest Nasdaq-style high-tech board, started trading on the Shanghai Stock Exchange (SSE) today. The first batch of 25 listed firms on STAR had strong performance today. As of Monday's closing, they gained about 140% on average, with one of them surging more than 400%.  

Source: Xinhua

19 Jul 2019

Continued coverage: The Greater Bay Area

 A financing platform for small-and-medium-sized enterprises in Guangdong province will be officially launched in September, aiming to efficiently provide fundraising solutions for SMEs, according to Chinese officials. The platform will be an open financing ecological system, based on the integration of big data of company credits and financing solutions, says the official.

Source: aastocks.com

Shenzhen to issue standards for green funds

Shenzhen is planning to roll out the standards for green funds next year, according to local officials. A green finance lab will be set up this year in October with the support from the United Nations Environment Programme.

Source: takungpao.com.hk

18 Jul 2019

China might remove the quota limit for QFII

The State Administration of Foreign Exchange (SAFE) has announced that the regulators will continue to open up the capital market and enhance the reform of schemes such as QFII and RQFII. The quota for QFII might be increased or the limit might be removed, says officials from SAFE.  

Source: aastocks.com

17 Jul 2019

China might launch personal bankruptcy system this year

Chinese regulator is planning to launch pilot programs of the personal bankruptcy system during the second half of this year, according to a source talking to the China Securities Journal.  

Source: China Securities Journal

16 Jul 2019

Opening up continue to be the key theme for China this year

China's GDP growth has slowed during the first half of this year, up 6.3% y-o-y. Chinese regulators will continue to The negative list of foreign investment will be further shortened to encourage foreign investors entering the Chinese market. On the other hand, regulators plan to further cut import taxes.

Source: aastocks.com

More than 14 SOEs applies to list on China's new tech board

Chinese state-owned enterprises (SOEs) are encouraged to list on the new high science and technology trading platform (科创板). The regulator has accepted listing applications from 14 central SOEs so far.  

Source: aastocks.com

15 Jul 2019

China’s NEEQ raises over US$2.53 billion in H1

China’s National Equities Exchange and Quotations (NEEQ), also known as the “new third board”, has raised 17.415 billion yuan (US$2.53 billion) in the first half (H1) of this year. A total of 364 firms made 369 issuances of stocks during this period, according to NEEQ, noting that 184 issuances were made by small and micro firms, raising a total of 3.898 billion yuan. 

Source: Xinhua

China real estate market to expect steady growth

The investment in China's real estate market has been increasing rapidly since last year. The growth during the first half of this year is maintained at 10%, according to the National Bureau of Statistics of China. The Bureau predicts steady growth for this market, noting that there will not be too much fluctuation during the second half of this year.  

Source: aastocks.com

12 Jul 2019

Continued coverage: The Greater Bay Area

The number of train stations in mainland China with direct connections to Hong Kong has grown to 58 after a new railway operating plan taking effect this week. The new plan links 13 more high-speed train stations to Hong Kong, including stations in provinces such as Hebei, Hunan, Guizhou and Guangxi.  

Source: Xinhua

Chinese banking sector to face slower profit growth

Chinese banks may face slower profit growth and rising pressure on their asset quality due to uncertainties in global economic growth, rising trade friction, and tightened regulation, according to a report released by the China Banking Association. Chinese banks will have to deal with risks relating to the cleaning up of the unprofitable enterprises, potential credit default by some real estate companies, and risks from local government debt.

Source: China Banking Association

11 Jul 2019

China tightens supervision on REITs

Chinese regulators will tighten the supervision on the fundraising through real estate investment trusts (REITs), according to sources talking to the China Securities Journal. Trust companies are required to report their REITs fundraising activities in advance and the reports will be reviewed by regulators case by case. The institutions involved in any rejected report will be further investigated.

Source: cnstock.com

10 Jul 2019

China to intensify punishment on credit defaulters on new tech board

China has released a guideline to underline information disclosure and strengthen supervision on credit defaulters on the new high science and technology trading platform (科创板). Regualtors will strictly examine the companies applying to be listed on the new board and expose credit defaulters, according to the guideline by the China Securities Regulatory Commission (CSRC). Companies that have been blacklisted by other government departments or in other spheres will be singled out in the examination procedures.

Source: aastocks.com

Continued coverage: The Greater Bay Area

China has rolled out a credit rating system for mainland residents. This system is expected to be deployed in the Greater Bay Area as well, according to a proposal by the Guangdong government.  

Source: aastocks.com

09 Jul 2019

PBoC to push the R&D of its digital currency

People's Bank of China (PBoC) will enhance the research and development of its own digital currency. As fintech develops, the role of commercial banks being the mediator in transactions has been weakened, which generates more risks in terms of supervision, according to PBoC, noting that the central bank issuing digital currency will enhance the efficiency of the monetary policy and the enhance the supervision on the financial market.  

Source: aastocks.com

Chinese streaming platform DouYu to issue 67 million ADSs

DouYu International Holdings, an esports live streaming platform in China, announced terms for its initial public offering (IPO) on the US stock market this week. The company plans to offer 67,387,110 American Depositary Shares (ADSs) at a price range of 11.50 U.S. dollars to 14.00 dollars apiece, according to its latest prospectus.  

Source: Xinhua

08 Jul 2019

IT and telecom companies to list on the new tech board in China this month

The first batch of market open ceremonies for the companies to be list on the new high science and technology trading platform (科创板) is expected to launch on July 22nd. Twenty-five companies from sectors such as IT and telecom will go public on the new board, aiming to raise a total of 31.09 billion yuan (US$4.51 billion). By the end of July 5th, SSE has received 142 companies' application for listing.  

Source: aastocks.com

China to overtake US as world's biggest insurance market

China continued to be the second largest insurance market in 2018 and is expected to surpass the US in the mid-2030s to become the world's largest insurance market. China's total premiums have reached US$575 billion last year. Its share of the global premiums went from zero in 1980 to 11% in 2018 and is forecast to reach 20% over the next decade.  

Source: aastocks.com

25 Jun 2019

Chinese local government bond issues to hit record

As of June 21, China's monthly local government bond issuance has exceeded 594 billion yuan (US$86.3 billion). The country is accelerating local government bond issuance and has planned to issue over 200 billion yuan during the last week of June, hitting a record high of this year. This is said to stabilize economic growth and market expectations. 

Source: aastocks.com

China’s mutual fund volume at 13.91t yuan

China’s mutual funds reached 13.91 trillion yuan (US$2 trillion) by the end of April this year, according to the Asset Management Association of China. This number dropped slightly compared to March's 13.94 trillion yuan. The mutual funds are managed by 124 fund management companies, and 80 of them are domestic firms while the rest are joint ventures. 

Source: Xinhua

24 Jun 2019

China e-commerce sector records strong performace

China’s online retail sales reached 3.86 trillion yuan (US$562 billion) in the first five months of this year, accounting for over 20% of the country’s total retail sales of consumer goods, according to the 2019 China E-Commerce H1 Report released by the Chinese Academy of Social Sciences. The total imports and exports of the cross-border e-commerce increased by 50% last year.  

Source: Xinhua

12 Jun 2019

Continued coverage: The Greater Bay Area

Cross-border transactions of insurance products within the Greater Bay Area (GBA) are in the pipeline. The Connect is a special channel for the marketing, sales and transaction of insurance products between mainland China and Hong Kong. The Insurance Connect will follow the framework of the Stock Connect and Bond Connect.  

Source: Xinhua

11 Jun 2019

SSE to run final test on Chinese new tech board this week

 Shanghai Stock Exchange (SSE) will run the final test on the new high science and technology trading platform (科创板) this Saturday (June 15). The system will be open to market participants if it passes the test.

Source: aastocks.com

10 Jun 2019

Bond Connect attracts more overseas investors

 The Bond Connect program connecting mainland China and Hong Kong has seen a trading volume of 158.6 billion yuan (US$23 billion) with an average daily turnover reaching 7.6 billion yuan last month, according to China Foreign Exchange Trade System (CFETS). The Bond Connect attracted 108 new clients globally last month with the debut of investors from Thailand, expanding its coverage to 28 countries and regions.

Source: Xinhua

06 Jun 2019

SAFE simplifies foreign exchange capital settlement of insurance companies

State Administration of Foreign Exchange (SAFE) has announced to simplify insurance companies' settlement of foreign exchange capital. Insurers will no longer need to get approvals for such settlements and willingness settlement of foreign exchange capital will be in place for insurers, meaning that insurance companies can conduct such settlements via financial institutions. This move will increase the capital efficiency of insurance companies.  

Source: aastocks.com

Chinese e-commerce giants set up smart warehouses

China's online retailer giant JD has launched a smart logistics centre after trial runs in northwest China's Shaanxi Province. With floor space of nearly 300,000 square metres, the warehouse facility applies smart technologies such as automated sorting. NetEase Kaola, a cross-border e-commerce company, has also opened a new cross-border intelligent bonded warehouse in east China's Zhejiang Province. Intelligent and automatic warehousing and logistics equipment such as shuttle vehicles, automatic package sorters and conveyors for boxes have been deployed. 

Source: Xinhua

04 Jun 2019

Chinese online brokerage Futu to provide clearing service in US

Futu Holdings, a Hong Kong-based online brokerage backed by Tencent, announced this week that the US Securities and Exchange Commission and the Financial Industry Regulatory Authority have granted a clearing license to its wholly-owned US subsidiary, Futu Clearing Inc., enabling the entity to provide clearing, settlement and asset custody services to customers and other introducing brokers in the US. Founded in 2011, the company went public by listing its Initial Public Offering (IPO) on Nasdaq on March 8.  

Source: Xinhua

China to roll out 5G mobile data packages in August

Chinese mobile phone users can expect to use 5G network soon in August. Licenses for Chinese mobile telecom operator running 5G business will be issued this week.  

Source: China Securities Journal

20 May 2019

Chinese former top securities regulator under investigation: 700 IPOs issued during his tenure

Liu Shiyu, the former chairman of the China Securities Regulatory Commission (CSRC), is under investigation. During Liu's tenure of two years and 11 months, CSRC approved 710 IPOs and seven companies exited the A-share market. The Chinese stock market has increased by about 3.9 trillion yuan (US$563 billion) during his tenure, with the number of retail investors increased by 46 million.  

Source: finance.eastmoney

14 May 2019

Chinese regulators consult market on new CIBM rules

In order to improve the convenience of foreign investors investing in the China interbank bond market (CIBM), the People's Bank of China and the country's State Administration of Foreign Exchange (SAFE) are consulting the market. The proposed rules say that foreign institutional investors are allowed to conduct two-way transfers the interbank bonds held be the accounts under QFII/RQFII and CIMB Direct.  

Source: aastocks.com

China to increase tariffs on imported US products

China announced that it will raise the rate of additional tariffs imposed on some of the imported US products from June 1. China had earlier imposed additional tariffs on the US$60 billion of US imports, rising the tariff rates on certain products to 25%, 20% and 10%. The decision came after the US announcement of increasing tariffs on the US$200 billion of Chinese goods from 10% to 25%.  

Source: Xinhua

09 May 2019

Assets at China’s social security fund nears 3t yuan

China’s National Social Security Fund (NSSF) saw its managed assets rise to 2.96 trillion yuan (US$437.9 billion) as of the end of 2018, according to the National Council for Social Security Fund. Official data showed the fund gained 184.6 billion yuan in 2017, recording a return of 9.68%. The fund's annualized return is around 8.44% since inception.  

Source: Xinhua

HKMA to issue virtual bank licenses

Hong Kong Monetary Authority (HKMA) will soon issue virtual bank licenses to four institutions, namely Tenpay of Tencent, OneConnect of Ping An Insurance, a joint venture by Xiaomi, and Ant Financial of Alibaba. The licensed virtual banks will be officially launched around June to September, according to HKMA.  

Source: Hong Kong Economic Journal

07 May 2019

China's digital industry contributes 34.8% to GDP

China's digital economy reached 31.3 trillion yuan (US$4.6 trillion) in 2018, accounting for 34.8% of the country's total GDP, according to a recent report released by the Cyberspace Administration of China. The outstanding loans of China's enterprises on science and technology stood at 3.53 trillion yuan as of the end of last year. With more than 600 million users of online payment, the country's online retail sales surpassed 9 trillion yuan last year.  

Source: Xinhua

06 May 2019

PBoC to lower certain banks' cash reserve ratio

In order to reduce the cost of the fundraising of small-to-micro enterprises, the People's Bank of China (PBoC) will lower the cash reserve ratio requirements for certain banks. The new rules will take effect on May 15th.  

Source: aastocks.com

China's border province sees strong cross-border payments growth

The cross-border revenue and expenditure of China's southwestern Yunnan Province hit US$6.87 billion from January to March, up 6.86% y-o-y. In Q1 2019, the total amount of foreign exchange settlements by banks in Yunnan reached US$3.167 billion, up 18.66% y-o-y. Bordering Vietnam, Laos and Myanmar, Yunnan has accelerated economic and trade cooperation with southeast Asian countries in recent years. 

Source: Xinhua

Listed companies in China see steady revenue growth in 2018

Out of the 1,468 listed companies on the Shanghai Stock ExchangE, 1,466 had disclosed their 2018 financial information by the end of April. These companies have raised a total fund of 33.5 trillion yuan (US$4.97 trillion) last year, up 11% y-o-y. A report from the Shenzhen Stock Exchange revealed that 2,156 of the 2,159 companies listed on the exchange had disclosed their annual financial information, raking in 11.95 trillion yuan in revenue, up 13.33% y-o-y.  

Source: Xinhua

03 May 2019

News rules on foreign banks and insurers to roll out soon

The regulations on foreign banks and insurance companies operating in China will be rolled out soon. So far six foreign insurers have launched their business in China. The new regulations will further reduce the restrictions on foreign insurers operating in China, which will attract more players to tap this market, according to Chinese officials.  

Source: aastocks.com

China's IT services records stable revenue growth in Q1

Revenue of China's IT services increases by 16.7% y-o-y, reaching 858.3 billion yuan (US$127.56 billion) in the first three months of this year, according to a report by the Ministry of Industry and Information Technology. The revenue of cloud services rises by 15.4% compared to the previous year, with big data services up 20.7%. The revenue of information safety products and services reached 20.7 billion yuan in the first three months, up 13.4% y-o-y. 

Source: Xinhua

30 Apr 2019

China rolls out rules to facilitate cross-border e-commerce settlement

The State Administration of Foreign Exchange (SAFE) of China issued a guideline yesterday to facilitate the settlement for cross-border e-commerce. According to the guideline, payment institutions are allowed to offer market entities certain electronic payment services via banks. They can also provide Chinese residents with foreign exchange services for cross-border shopping, overseas education and tourism, the guideline says.  

Source: Xinhua

29 Apr 2019

Chinese property loan growth slows amid purchase restrictions

Loans issued to China's real estate sector grew at a slower pace in Q1 2019 as government purchase restrictions remain in place in major cities. By the end of last month, 40.52 trillion yuan (US$6.02 trillion) of loans are issued to the property sector, up 18.7% on year, according to a report from the People's Bank of China (PBoC). This growth is 1.3% lower than that of the end of last year. Outstanding loans for individual purchases went up by 17.6%, reaching 26.87 trillion yuan, retreating 0.2% from the end of last year. 

Source: Xinhua

MOF to promote sustainable finance to support BRI

In order to maintain high-quality growth of the Belt and Road Initiative (BRI) projects, China will promote the use of sustainable finance to stress some of the debt issues, according to the Ministry of Finance (MOF) of China. A fundraising guide will also be issued jointly by the financial regulators of the 28 countries involved in the BRI.

Source: aastocks.com

CSRC denies deregulation on IPO application

Media has been reporting that the China Securities Regulatory Commission (CSRC) plans to relax the restrictions on IPO applications and simplify the application process. CSRC says there is no change in the application process and the strict supervision on IPOs will remain.  

Source: aastocks.com

23 Apr 2019

China’s individual income tax reform boosts consumption

China’s reform on individual income tax will increase consumer spending by 717.6 billion yuan (US$107.2 billion), according to a recent report. Middle-to-low-income groups, in particular, benefit from the reform. Urban residents with monthly income below 10,000 yuan enjoying tax cuts of more than 60%.  

Source: Xinhua

Chinese gaming sector shows signs of rebound

The Chinese online gaming sector is seeing some signs od rebound after the regulators started to issue licenses for new games. DouYu International Holdings Limited, a game-centric live streaming platform in China, filed for an initial public offering (IPO) on the New York Stock Exchange this week. With an expectation to raise up to US$500 million, this offering will be mainly used to invest in content, for research and development, for marketing to promote the brand and for general corporate purposes, which may include acquisitions.  

Source: Xinhua

16 Apr 2019

China intensively cracks down on the illegal fundraising

China will intensively crack down on the illegal fundraising cases from April to June, according to the China Banking and Insurance Regulatory Commission (CBIRC). Regulators will also roll out rules on dealing with the illegal fundraising cases within the first half of this year.  

Source: aastocks.com

15 Apr 2019

Macau to support RMB internationalization

The Monetary Authority of Macao is researching the possibility of using renminbi for quoting prices and settling accounts, according to Chinese media. This move will support the renminbi internationalization and energize the financial market of Macau. 

Source: Securities Time

12 Apr 2019

Cross-border e-commerce hub launched in Liaoning FTZ

An incubator for cultivating talents in cross-border e-commerce was launched this week in the Liaoning free trade zone (FTZ), the only FTZ in Northeast China. Being the home to more than 600 “hatching studios” and multiple training classrooms, conference halls and company service centres, the hub will invite experts in foreign trade and professional cross-border e-commerce companies to train start-ups regarding international trade and cross-border e-commerce issues.  

Source: Xinhua

10 Apr 2019

Taiwan firms supported to go listing in mainland China

Taiwan enterprises are supported to be listed in mainland China, according to the Taiwan Affairs Office of the State Council of China. The regulator says that there is no regulatory obstacles for Taiwan enterprises to apply for listing on the new high science and technology trading platform (科创板). So far there are more than 30 Taiwan enterprises already listed on Chinese A-share market.

Source: aastocks.com

09 Apr 2019

Real estate firms in China raise record high funds in March

In March this year, 40 listed real estate enterprises in China have raised a total of 102.42 billion yuan, hitting a record high since November 2017. Debt financing is the major financing tool for these enterprises, taking 96.19% of the total funds raised in March.  

Source: cnstock.com

Chinese treasury bonds attracts retail investors

People's Bank of China has rolled out a more convenient mechanism for retail investors to buy Chinese treasury bonds. Retail investors can buy these bonds through online channels and branches of the underwriters during the whole month of April. The treasury bonds used to be open to retail investors only for 10 days in April.  

Source: aastocks.com

Continued coverage: The Greater Bay Area

Chinese has relaxed the restrictions of the household registration, or the hukou system. Cities in the Greater Bay Area (GBA) including Zhuhai, Huizhou, Jiangmen and Zhaoqing will remove the restrictions of immigrants applying for registrating the hukou under these cities. Guangzhou, Shenzhen, Foshan and Dongguang will improve the points-based household registration system. As the household registration system is closely related to purchasing houses, the moves of the regulators will boost the real estate market in the region.

Source: etnet.com.hk

08 Apr 2019

China to revise regulations on refinancing

The regulations on refinancing will be revised and relaxed. The ceiling of refinancing equity issuance will be relaxed to 50% from the previous 20% of a company's total shares.

Source: 21jingji.com

Smaller enterprises supported to raise fund

In order to solve the difficulties of smaller enterprises in raising fund, Chinese regulators will roll out supportive rules for such enterprises. Smaller enterprises are encouraged to go public. The process of listing application can be simplified.

Source: aastocks.com

04 Apr 2019

China to reduce the cost of aviation companies

The civil aviation development fund will be reduced by about 50%, according to Chinese Premier Li Keqiang. This move will significantly reduce the cost of aviation companies and energize the performance of the stocks in this sector, according to Chinese analysts.  

Source: aastocks.com

China to further crack down illegal online lending platforms

In order to further control the risk of the online lending industry, Chinese regulators have agreed to tighten the supervision on this sector this year. Key focuses include monitoring data and information disclosure. The regulators will crack down on the illegal lending platforms.  

Source: Xinhua

China accepts 37 applications to be listed on new tech board

The Shanghai Stock Exchange (SSE) has recently announced that it had accepted 37 companies’ applications to be listed on China’s new high science and technology trading platform (科创板). The companies have to go through the second stage of audit and inquiry before they can successfully be listed on the board. The board was launched to boost the development of high-tech sectors and advance economic transition leveraging financial reforms. 

Source: Xinhua

03 Apr 2019

Chinese regulations on reinsurance to be relaxed

Chinese regulators are revising the rules on reinsurance, according to a source talking to 21jingji.com. The move aims to provide a more relaxed policy environment for the industry regarding requirements on under-weighting and lock-in.  

Source: 21jingji.com

02 Apr 2019

First batch of public REITs to be issued in China

China will issue the first batch of public REITs soon. Beijing, Shanghai, Guangzhou, Shenzhen and Hainan are on the list of pilot cities for these private REITs.  

Source: aastocks.com

CFETS: foreign investors paced up to enter Chinese bond market

Foreign institutional investors have paced up to enter the Chinese bond market since 2019, according to the China Foreign Exchange Trade System (CFETS). Products offered by global asset managers such as BlackRock and Vanguard Group have appeared in the Chinese market. The number of new accounts opened during the first quarter of this year by foreign institutional investors is close to 300, accounting for 70% of the total number of new accounts opened in 2018. 

Source: aastocks.com

01 Apr 2019

China to consider rolling out CDS

China should consider rolling out credit default swap (CDS) products in the future, according to Xie Zhong, chairman of Shanghai Clearing House. China's market has already shown great potential in the rate derivatives and forex derivatives, according to Xie. In order to mitigate the risk in the credit market, more sophisticated financial tools including CDS should be rolled out, Xie says.  

Source: aastocks.com

SAFE: China's foreign debt growth rate is generally slowing down

The foreign debt of China continued to grow in 2018, according to the State Administration of Foreign Exchange (SAFE), noting that the overall growth rate slowed down. The foreign debt risk was generally controllable. 

Source: aastocks.com

China to revise foreign investor's negative list in June

 China will further open up the financial market, according to Chinese Premier Li Keqiang, noting that the regulators will once again roll out a revised negative list for foreign investment in June. Sectors such as telecommunication, healthcare, education, transportation, infrastructure, and energy will be further opened up to foreign investment.

Source: aastocks.com

21 Mar 2019

Fewer gaming companies to go listing in China

The number of gaming companies IPO applying for IPO in March has declined to six from the ten of same time last year. This is due to the tightened regulation on the industry, according to Chinese analysts.  

Source: cnstock.com

Shanghai issues new rules to support listing in tech sector

Shanghai government has issued 25 new rules to support innovation and vitalize the tech sector. The recent official launch of new high tech trade platform (科创板) has offered the opportunity, according to Shanghai officials, noting that the city aims to take the chance, building its innovation capability and connecting to the global innovation network.

Source: cnstock.com

CBIRC to crackdown on stock pledge risk and bond default risk

China will continue to control the risk of the financial market, with a focus on stock pledge risk and bond default risk, according to the China Banking and Insurance Regulatory Commission (CBIRC). Meanwhile, the regulator will improve the fundraising environment and support direct finance.  

Source: cnstock.com

19 Mar 2019

China's new tech board opens for listing application

The Shanghai Stock Exchange began accepting IPO applications for the new high tech trade platform (科创板) yesterday. The bourse disclosed the progress of reviewing these applications on its official website. The market might see the first group of offerings in June, according to analysts.  

Source: aastocks.com

Chinese regulator to further cut tax to boost innovation

China has reduced 1.3 trillion yuan (US$193.6 billion) of taxation in 2018. This year, the country's regulators will further strengthen their efforts in this to vitalize the economy. As the burden of Chinese enterprises will be further reduced, the market is expected to see more innovation coming up, according to the regulators.  

Source: cnstock.com

18 Mar 2019

Online insurance industry receives more complaints

Last year, there were 10,531 complaints about online insurance companies in China, according to China Banking and Insurance Regulatory Commission (CBIRC). The number records 121.01% growth on year. The number of complaints about non-life insurance companies increased by 128.25% y-o-y in 2018, reaching 8,484, according to the regulator.  

Source: aastocks.com

MSCI A-share Coverage

The stock value of Kweichow Moutai, a Chinese liquor (白酒) brand has hit a new record high today. Its stock price increased by 4.22% today, with the market value of the company exceeding 10.176 trillion yuan (US$1.52 trillion).

Source: cnstock.com

Hong Kong and Macau investors can refer to the new foreign investment law: Chinese Premier

The investment from Hong Kong and Macau accounts for 70% of the total foreign investment into mainland China, according to Chinese Premier Li Keqiang, highlighting that the country has been attaching great importance to the sector. Investors from Hong Kong and Macau can refer to the newly enacted foreign investment law, says Li, noting that a more complete and unified policy environment will attract more investment from the two markets.  

Source: aastocks.com

15 Mar 2019

China adopts new foreign investment law

China’s national legislature today passed the foreign investment law at the closing meeting of its annual session. With a more complete regulation on the entry, promotion, protection and management of foreign investment, the law aims to improve the transparency of foreign investment policies. This new fundamental law ensures domestic and foreign enterprises are subject to a unified set of rules.  

Source: Xinhua

14 Mar 2019

Continued coverage: The Greater Bay Area

Hong Kong government will set up an office with more than 30 staff to manage projects relating to the Greater Bay Area. 

Source: etnet.com.hk

13 Mar 2019

Chinese SOEs plan to raise funds through bonds

The growth of bond issuance in China has paced up this year. A number of Chinese central state-owned enterprises (SOEs) have recently submitted their plans of raising funds through bonds. In March, more than five SOEs has announced their plans of bond issuance, ranging from 10 billion yuan (US$1.49 billion) to 30 billion yuan.

Source: 21jingji.com

China boosts loans issued to small enterprises

The financial tools serving small-to-micro enterprises will be improved, according to a new notice by China Banking and Insurance Regulatory Commission (CBIRC). The loans issued to these enterprises should maintain a rational growth in 2019, the notice requires. Major banks in China should lead and contribute to the growth.  

Source: aastocks.com

12 Mar 2019

China cuts US$29.8 billion tax in four months

China has cut 200 billion yuan (US$29.8 billion) of tax from October last year and January this year. The first nine months of last year have seen an increase of 20% y-o-y in the taxation and in October, the country launched the taxation reform last year. The taxation in January 2019 was reduced by 23.5% on year.  

Source: aastocks.com

China cracks down on NPLs

 China will further crack down on the non-performing loans (NPLs) in 2019, according to the China Banking and Insurance Regulatory Commission (CBIRC).

Source: aastocks.com

11 Mar 2019

Chinese regulator to further control financial risks

Chinese regulator will further tighten the supervision on the financial system to prevent the risks. Four areas, namely non-performing loans, liquidity risk of small-to-medium-size banks, shadow banking and real estate loan, will be the key focuses of the regulators.  

Source: cnstock.com

Property taxation law to be enacted this year

China will enact new laws on property taxation in 2019, according to the country's top officials.

Source: aastocks.com

China to vitalize capital market

Chinese regulators say that insurance companies are encouraged to do long term investment in the capital market. Financial institutions are supported to diversify and expand the capital inflow. In addition, China will support the development of venture capital (VC) as part of the efforts to boost innovation, according to Chinese Premier Li Keqiang. The trend of venture capital and private equity (PE) firms powering China’s innovation will be intensified in the years ahead, Chinese analysts predict.  

Source: Xinhua

07 Mar 2019

China to roll out more reforms to support private enterprises

Chinese officials of the National Committee of the Chinese People’s Political Consultative Conference (CPPCC) suggest that more reforms should be rolled out to support the private enterprises. Compared with State-owned enterprises, private enterprises have seen more difficulties partly due to insufficient credit support. These companies should be given tangible benefits in terms of steady development and fair competition.  

Source: Xinhua

BOC launches wealth management service in Malaysia

Bank of China (BOC) Malaysia Branch launched its Wealth Management Banking Center this week. Being the first among BOC's Southeast Asian entities to do so, the service is geared towards high net-worth individual customers through personalized wealth management advice. The bank is also redefining the digital agenda to enhance customers experience in the region.  

Source: Xinhua

Continued coverage: The Greater Bay Area

AlipayHK users will soon be able to use the mobile payment app in mainland Chinese cities in the Greater Bay Area (GBA). So far, the mainland Chinese version of Alipay can be used in Hong Kong while the Hong Kong version is only applicable to the local market. In the long run, AlipayHK's users will be able to pay in most of the cities in mainland China, the company says.  

Source: hk01.com

05 Mar 2019

China to do more to attract foreign investment in 2019

China will do more to attract foreign investment in 2019, according to a government work report released today. The country will further relax controls over market access, simplify the negative list for foreign investment, and permit wholly foreign-funded enterprises to operate in more sectors, according to the report. Foreign investors' legitimate rights and interests will be further protected, the report says.  

Source: Xinhua

Chinese corporate burden to be cut by 2 trillion yuan in 2019

China will reduce the tax burdens and social insurance contributions of enterprises by about 2 trillion yuan (US$298 billion) this year, according to a government work report issued today. Regulators will mainly focus on reducing tax burdens on the manufacturing sector and small and micro business, according to the report.  

Source: Xinhua

04 Mar 2019

China to revise securities law

China will improve the law system serving to the opening up of the financial market, according to Chinese officials. In addition to the regulations on foreign investment, laws relating to securities and resource tax will be revised or enacted this year. 

Source: aastocks.com

Continued coverage: The Greater Bay Area

Pan Gongsheng, administrator of the State Administration of Foreign Exchange (SAFE) and deputy governor of the People's Bank of China (PBoC) will come to Hong Kong this month to discuss with local regulators on implementing the newly issued Greater Bay Area Plan.  

Source: aastocks.com

China to improve legal environment to support AI

In order to promote the development and application of AI, Chinese officials are discussing to improve the relevant regulations on this industry. Major topics include data security and personal information protection.  

Source: aastocks.com

01 Mar 2019

SSE opens trading centre in Guangzhou

Shanghai Stock Exchange has opened a centre in Guangzhou today. The centre will serve the Greater Bay Area, providing convenience to the capital market in Guangdong, Fujian and Hainan. Services relating to the new high tech trade platform (科创板) will be a major focus of this centre.  

Source: cnstock.com

CSRC to further regulate the market

In order to attract more long term investment, the China Securities Regulatory Commission (CSRC) is considering to crack down on the illegal practice in the capital market. The cost of violating regulations and rules will be raised, according to the regulator. The investor education will be introduced to the general public, promoting rational investment and long term investment.  

Source: cnstock.com

28 Feb 2019

China continues to be world's second largest green bond market

China issued a total of US$31.2 billion (208.63 billion yuan) green bonds last year, according to a report issued by China Central Depository & Clearing and Climate Bonds Initiative. With a 33% of year-on-year growth in issuance in 2018, the country continues to be the world’s second-largest green bond market. Industrial Bank of China takes up 23% of last year’s total issuance, becoming the largest issuer in China and the second largest worldwide.  

Source: Xinhua

Chinese private enterprises supported to issue bonds for fundraising

Chinese regulators are supporting qualified private enterprises to issue bonds for fundraising in a bid to help them ease financing difficulties. In November and December last year, private companies issued a total of 155 billion yuan of bonds up 70% y-o-y, according to a report from the People’s Bank of China. 

Source: Xinhua

27 Feb 2019

Continued coverage: The Greater Bay Area

Guangdong province’s high import and export volume has been attributed in part to the restructuring and upgrading of foreign trade companies and innovation in science and technology. With the release of the development plan for the Guangdong-Hong Kong-Macao Greater Bay Area and the development of the Belt and Road Initiative, Guangdong’s foreign trade will maintain its strong growth momentum throughout the year, say Chinese experts. 

Source: sina.com.cn

25 Feb 2019

Chinese shared office sector to see mergers and acquisitions

China’s shared office market, or co-working space market, will see more mergers and acquisitions this year and the next as more resources and capital flow into top operators, according to a recent report by the China Real Estate Chamber of Commerce. Last year, 40 co-working space brands exited the market, with about 3% of them being acquired. The top 10 companies take up 37% of the total area of co-working space in China, compared to 75% for the top 100 companies, showing a trend of market centralization.  

Source: Xinhua

Anbang remains to be under Chinese regulator's supervision until next year

Chinese regulators took control of Anbang in February last year, part of a sweeping campaign to reduce financial risk. This was supposed to be ended in February this year, but the regulators have decided to prolong it to February next year.

Source: aastocks.com

Fee cuts to help banks, brokerages better serve real economy

The China Banking Association (CBA) and the Securities Association of China (SAC) have planned to lower the costs of their member institutions, with the CBA expecting to reduce membership fees by 14.5 million yuan (US$2.1 million) in 2019. This move is to boost members’ roles in serving the real economy which is now one of the major national strategic plans of China.  

Source: Xinhua

22 Feb 2019

Chinese capital market to reduce taxes and fees

Chinese regulators will reduce the taxes and fees in the capital market to relieve enterprises' burden and vitalize the market. The Securities Association of China (SAC) has issued a relevant notice recently.  

Source: cnstock.com

Continued coverage: The Greater Bay Area

The property industry in the Greater Bay Area (GBA) will benefit from the GBA Outline Development Plan issued this week, according to Chinese analysts. Residence, office buildings and industrial logistics properties are expected to grow.

Source: aastocks.com

21 Feb 2019

Continued coverage: The Greater Bay Area

Regulators from mainland China and Hong Kong is discussing to launch a cross-border investing mechanism. Under the newly issued overarching plan of the Greater Bay Area (GBA) Hong Kong, which has been a bridge connecting mainland China to the world, will be transformed into an active participant, according to Hong Kong regulator, noting that interested parties need to move fast and seize the opportunity. In the meantime, Guangdong is considering expanding the free trade zone (FTZ) in the province.

Source: aastocks.com

China to form AI development pilot zones

China is planning to form a batch of pilot zones to promote the AI technology. Beijing has already launched one. The zone will focus on exploring an innovative system to develop the AI technology through coordinating efforts of the government, academia and the industry, aiming to develop Beijing into a major producer of AI-related theories, ideas and talent.  

Source: cnstock.com and Xinhua

19 Feb 2019

JD.com to cut senior headcount

The economic slowdown in China has seen the headcount reduction in quite a few companies. Chinese e-commerce giant JD.com has recently announced that it will reduce the number of senior executives by 10% in 2019. These will include the nearly 100 executives with positions higher than vice presidents, meaning that about 10 senior executives might lose their jobs this year. 

Source: hket.com

Continued coverage: The Greater Bay Area

According to the outline of the development blueprint for the Greater Bay Area (GBA) released yesterday evening, the main focus of the initiative is to strengthen the cooperation among the three areas in order to turn the GBA into a world-class innovation and technology hub and an efficient gateway between the mainland and the outside world, particularly the economies involved in the Belt and Road Initiative.

Source: hk01.com

18 Feb 2019

Foreign capital flows rise via stock connects

Net capital inflow into China’s A-share market through stock connects hit a record high in January with a total net inflow of 60.69 billion yuan (US$8.97 billion) through the northbound trading of the Stock Connect. This marks the first time that the monthly net inflow exceeds 60 billion yuan since the Stock Connect's launch in 2014. 

Source: Xinhua

Financial assets of central SOEs to be managed

Chinese regulators are considering to integrate the financial assets of certain central state-owned enterprises (SOEs) through transfers and sales. The State-owned Assets Supervision and Administration Commission (SASAC) will soon roll out regulations regarding this. The People's Bank of China (PBoC) and interested parties are discussing to issue a special regulation to supervise the financial holding arms of central SOEs.  

Source: aastocks.com

Continued coverage: The Greater Bay Area

The overarching framework of the Greater Bay Area (GBA) will be issued this evening, according to sources talking to Hong Kong media.  

Source: aastocks.com

15 Feb 2019

Anbang Asset Management announces new general manager

China Banking and Insurance Regulatory Commission (CBIRC) has announced that Wu Jianfei (吴剑飞), a veteran fund manager, is approved to be the general manager of Anbang Asset Management. Wu used to be a general manager at Minsheng Royal Fund Management.  

Source: CBIRC

14 Feb 2019

China-Laos railway to complete most construction by 2019

Over 90% of the tendered bridge and tunnel projects of the China-Laos railway will be completed by the end of 2019, says the Laos-China Railway Co., Ltd. (LCRC), noting that the construction of the key projects under the Belt and Road Initiative (BRI) is entering the critical phase in 2019. 

Source: Xinhua

Didi's loss increases by 336% on year

Didi Chuxing Technology, a Chinese ride-sharing, artificial intelligence and autonomous technology conglomerate, was reported to have a total loss of 10.9 billion yuan (US$1.61 billion) during the past financial year, up 336% y-o-y. This number was 2.5 billion yuan in the previous year. The loss in 2018 is related to the two murders by Didi drivers. In addition, the company spent 11.3 billion yuan on the drivers' allowance during the 2018 financial year.  

Source: 36kr.com

China to cut corporate tax in postal service and logistics industry

China has been rolling out measures of reducing taxation to boost consumption. Companies in the postal service and logistics industry are expected to see tax reduction soon.

Source: Beijing Business Today

13 Feb 2019

New index to be launched by SSE

The G60 High-Tech Corridor, an alliance that promotes the integration among nine cities in the Yangtze River Delta including Shanghai and Hangzhou, will sign a cooperation agreement with the Shanghai Stock Exchange (SSE) this Friday. The G60 High-Tech Corridor Index will be launched then. The index will include 161 stocks, accounting for a total valuation of 1.5 trillion yuan (US$222 billion).  

Source: cnstock.com

Continued coverage: The Greater Bay Area

Shenzhen has launched the construction of 31 Greater Bay Area (GBA) projects which account for a total investment of 74.8 billion yuan (US$11.1 billion). Major projects include new transport infrastructure and forming a new city centre in Qianhai, a pilot free trade zone in Shenzhen.

Source: cnstock.com

12 Feb 2019

Chongqing FTZ attracts over 12,000 companies in 2018

Chongqing has been improving its regulatory environment and simplifying the procedures of setting up a business or a project. Therefore, a total of 12,768 enterprises were set up in the pilot free trade zone (FTZ) of Chongqing in 2018. The total registered capital of the newly established enterprises surpassed 128 billion yuan (US$18.89 billion). 

Source: Xinhua

China to issue more measures to boost consumption

The growth of consumption in China might slow down this year, according to the Ministry of Commerce, noting that more measures will be rolled out to boost consumption.  

Source: cnstock.com

11 Feb 2019

China’s information consumption surges in 2018

China’s information consumption saw a rapid increase last year, with the total business volume of the telecommunication sector rose by 137.9% y-o-y, according to the Ministry of Industry and Information Technology (MIIT). The services of 4G continued to develop last year, with the number of users hitting 1.17 billion. The price of a number of Chinese stocks relating to the 5G industry rose its daily limits this morning.

Source: Xinhua

China to upgrade state-owned investment companies

Chinese regulators plan to upgrade state-owned investment companies, particularly in terms of the management model, distribution of industries, and structural reforms. There are 122 Chinese state-owned enterprises with reforms underway, and so far, 11 of them are state-owned investment companies.  

Source: Xinhua

08 Feb 2019

Interbank payment and settlement via UnionPay up 81.3% on Chinese New Year Eve

UnionPay provides support to the payment and settlement of some of the online red packets this year. UnionPay cleared 261.7 billion yuan (US$38.8 billion) of payment and settlement on Chinese New year Eve (February 4), recording a growth of 81.3% on year. 

Source: cnstock.com

Continued coverage: The Greater Bay Area

The cross-border e-commerce pilot zone in Guangdong launched a new import business model this month. Under this business model, e-commerce platforms can purchase a large number of goods from overseas according to market forecasts and consumer demands, and these bonded goods are allowed to be imported and stored in certain areas in the pilot zone before delivered to consumers individually. With the new business model, the pilot zone which is located in Zhuhai might energize the cross-border e-commerce business among the Greater Bay Area cities including Hong Kong and Macau.

Source: Xinhua

Regulations on QFII and RQFII investing in NEEQ to be rolled out

Qualified Foreign Institutional Investors (QFII) and RMB Qualified Foreign Institutional Investors (RQFII) are allowed to invest in the stock listed on China's National Equities Exchange and Quotations (NEEQ), also known as the “new third board”, according to a recent announcement by China Securities Regulatory Commission (CSRC). NEEQ will soon roll out relevant regulations. This move will enhance the corporate governance of the companies listed on the NEEQ.  

Source: aastocks.com

31 Jan 2019

Local governments in China lower GDP targets

Local governments in China have lowered the GDP growth targets for 2019 amid the economic downturn. This will be good for the country's economic restructuring and high-quality development. Last year, Guangdong led the country's economic growth with a 6.8% GDP growth.  

Source: Xinhua

PBoC to further open up Chinese bond market

Bloomberg has confirmed today that Chinese renminbi government bonds will be added to the US$54 trillion Bloomberg Barclays Global Aggregate index from April this year. This shows that foreign investors are increasingly more interested in Chinese market, accoring to the PBoC. The regulators also says that the bond market will be further opened up with discussion on new regulations underway. 

Source: aastocks.com

Unprofitable companies can be listed on the new tech board

The draft rules of the new high tech trade platform (科创板) for companies from the innovative technology sector has recently been rolled out. Qualified unprofitable companies and companies with special structure are allowed to list on the new board. The investment threshold for individual investors is set at 500,000 yuan (US$74,507). 

Source: aastocks.com

30 Jan 2019

China to roll out trade facilitation measures in overseas markets

The China Council for the Promotion of International Trade (CCPIT), China's foreign trade and investment promotion agency, will work with interested parties to build a new regulatory mechanism to ensure the interests and legitimate rights of domestic companies in overseas markets. The mechanism will establish databases of credit records for state-owned enterprises and a number of private companies, improving information sharing and preventing potential risks.  

Source: Xinhua

29 Jan 2019

PBoC to issue central bank bills in Hong Kong

People's Bank of China (PBoC) will issue central bank bills next month in Hong Kong, according to a source talking to Chinese media. The PBoC has recently announced that it will set up a central bank bills swap (CBS) to encourage Chinese banks to improve the liquidity through perpetual bond issuance.

Source: aastocks.com

Smart home appliances to boost consumption as regulator supports ESG

Chinese regulator will implement a certain amount of subsidy to energy-saving smart home appliances. The National Development and Reform Commission (NDRC) sees smart home appliance sector to attract a total consumption of 700 billion yuan (US$59.41 billion) over the next three years.  

Source: aastocks.com

Continued coverage: The Greater Bay Area

Guangdong Province will accelerate a special plan to develop the Guangdong-Hong Kong-Macao Greater Bay Area (GBA), providing policy support for the 11 cities involved. The three parties will jointly build an international science and technology innovation centre, a science and technology innovative corridor, and a group of collaborative laboratories to conduct research and development of advanced technologies. Guangdong recorded a GDP growth of 6.8% in 2018.

Source: Xinhua

28 Jan 2019

Hainan eyes 7.5% GDP growth as FTZ expands

Most of the Chinese local governments have lowered the fiscal revenue target for 2019. However, Hainan Province sets its GDP growth target for this year at 7% to 7.5% as the free trade zone (FTZ) continues to expand there. The Province recorded 5.8% of GDP growth last year, falling short of the 7% target.  

Source: Xinhua

Tesla seeks syndicated loans in Shanghai

Tesla's factory in Shanghai has completed the registration and is seeking syndicated loans, according to a source talking to Caixin. A number of domestic banks are reaching out to Tesla, says the source.  

Source: Caixin

25 Jan 2019

HKMA to issue licenses to virtual banks

The Hong Kong regulator has been encouraging the development of virtual banks to promote fintech. Hong Kong Monetary Authority (HKMA) will issue the first batch of virtual bank licenses in the first quarter of this year. The HKMA has received applications from more than 30 institutions as of end August 2018. Tencent, Ant Financial, JD.com, Xiaomi, and Standard Chartered Bank are among the list.

Source: 21jingji.com

Supply-side structural reform continue to be China's major policy

The supply-side structural reform will continue to be a major policy in China. Through deleveraging and eliminating excess capacity, the country aims to improve the quality of economic growth, economists say. 

Source: Xinhua

24 Jan 2019

Chinese new tech board to see 150 listings this year

The draft rules of the new high tech trade platform (科创板) for companies from the innovative technology sector has not been rolled out yet, and the board is expected to see the first batch of listings during the first half of this year. It is estimated that there will be 150 companies listing on the new board by the end of this year, raising a total of 50 billion yuan to 100 billion yuan (US$7.37 billion to US$14.74 billion).  

Source: etnet.com.hk

China to keep investing in US treasury bond

Amid the Sino-US trade tension, China recently expresses its attitude towards investing in the US. China will not significantly cut back the investment in US treasury bonds, says the vice chairman of the China Securities Regulatory Commission (CSRC).  

Source: aastocks.com

Chinese local governments lower fiscal revenue targets

Major Chinese local governments such as Beijing, Jiangsu, Sichuan, Henan, Hebei and Fujian have lowered the fiscal revenue for 2019 due to the economic downturn and the pressure outside the country. In order to maintain a stable economic growth, the regulators will continue to roll out further measures to reduce the taxation.  

Source: 21jingji.com

22 Jan 2019

NDRC: no large scale job-cuts in China

Amid the economic downturn and the Sino-US trade tension, some of the large corporates in China including the Internet enterprises are cutting jobs, according to Chinese media. However, China's National Development and Reform Commission (NDRC) says today that the recruitment and headcount of most Chinese enterprises especially the Internet companies are reasonable, and the regulator has not observed large scale of job-cuts.

Source: aastocks.com

China approves 189 fixed-asset investment projects in 2018

Official data shows that 189 fixed-asset investment projects were approved in China in 2018. The projects are mostly in high-tech, energy, transportation and water conservancy sectors. China’s fixed-asset investment grew 5.9% y-o-y in 2018, reaching 63.56 trillion yuan (US$9.38 trillion) last year.  

Source: Xinhua

21 Jan 2019

China launches 15 air routes linking BRI regions

China’s Jiangxi Province has recently launched 15 regular air routes connecting the province with countries and regions along the Belt and Road Initiatives (BRI). The exports of Jiangxi province to major countries along the BRI reached US$12.16 billion in 2018, up 17.5% y-o-y. Flights now link the province with Moscow and Singapore. New cargo flights linking the province with Belgium are also launched.  

Source: Xinhua

CBIRC tightens the supervision on auto insurance

The supervision on auto insurance industry will be tightened, according to a new notice issued by China Banking and Insurance Regulatory Commission (CBIRC) recently. Insurers are banned from changing the policies and rates without approvals from regulators. Insurers are also required to enhance the quality of information disclosure.  

Source: aastocks.com