CIRC gets tough on insurance firms’ stock purchases
The most important and market-moving stories from the Chinese-language media
China’s Insurance Regulatory Commission (CIRC) will set restrictions on the level of investment insurance firms can have in listed companies, Caixin reported on Tuesday, citing an exclusive source from the regulator. According to the regulation that is set to be released soon, insurance premiums cannot be used to buy more than 20% of a listed company and share purchases need to be pre-approved by the CIRC.
Asset holdings of insurance funds cut to 30%
China’s Insurance Regulatory Commission (CIRC) hopes to reduce the proportion of total assets held by insurance funds to 30%, YiCai reported on Tuesday evening, quoting CIRC Deputy Director Chen Wenhui. The limit was raised to 40% last year.
China CPI’s modest rise to continue: bureau
China’s Consumer Price Index is likely continue its modest pickup, and would not pose a threat to inflation next year, Caixin reported on Tuesday, quoting Mao Shengyong, a National Bureau of Statistics spokesman. The CPI is a major indicator of inflation.
China Railway opens public bidding for the supply of electric-powered trainsets
China Railway Corporation launched its first public bidding on Tuesday for the provision of electric multiple unit trainsets, Caixin reported. Bids can be no higher than 8.5 billion yuan (US$1.22 billion). The total investment in electric multiple units has dropped 40% compared to last year, a China Railway Corp insider told Caixin.
Economy in a ‘new position,’ says People’s Daily
The People’s Daily ran a front page editorial on Wednesday, saying that China’s economy is in a “new position.” The term was used for the first time to describe the current economic climate. The “new position,” puts more focus on the supply side rather than the demand side of the economy, it said. The Communist Party of China previously coined the term “new normal” to describe the slowdown in economic growth.
QR code payments to be in line with international standards
China UnionPay issued new standards on QR code payments, a Caixin report said on Tuesday night. Insiders believe it means domestic banks will have to follow the same international standards when processing QR code payments, which may promote interbank electronic payments.
Transport infrastructure projects are still top driver of fixed-asset investments
The National Development and Reform Commission approved 26 fixed- asset investment projects worth 264.2 billion yuan in November, increasing 20.7% from last month, sina.com reported. Among the projects, transportation infrastructure is still the top driver of the government’s investment strategy. The seven transportation projects were valued at 158.3 billion yuan, the report added.