Government calls in banks for foreign exchange chat
The most important and market-moving stories from the Chinese-language media
The government is turning its attention to foreign exchange flows as the yuan weakens against the dollar, according to reports on YiCai that point to moves by the State Administration of Foreign Exchange — with the encouraging acronym of SAFE — and the People’s Bank of China. SAFE called in banks to tell them its imposing stricter regulations on cross-border business audits, especially on direct foreign investments and M&A, YiCai reported citing multiple sources. Meantime, the PBOC wants to ensure yuan outflow for, say, M&A is being used for the stated purpose and not just hedging currency risk, according to YiCai.
October rail freight points to strong economy
October rail freight rose 11.2% on month to 307 million metric tons and set a 20-month high on the back of rising volumes of coal and steel, the Economic Daily reported, citing the National Development and Reform Commission and SinoLink Securities.
Shanghai takes a shot at property speculators
Shanghai is raising the downpayment for residential property to 35% and restricting new loans to those holding no property in the province, according to a joint statement on Monday evening by People’s Bank of China Shanghai Branch, local banking regulators and other authorities, reported Caixin on the same day. The new rules are part of a package of restrictions coming into effect on Tuesday and join property curbs introduced in Shanghai on October 8.
Government tackling land rights expiry problem
Unclear regulations have left a vast number of properties in China holding expiring leases, a problem the government pledged to deal with by setting a clear legal framework, according to a statement on Monday reported by Caixin on the same day. The issue caused a public outcry earlier this year when the local government in Wenzhou tried to charge homeowners as much as one-third of the value of their properties to renew land deeds.
China approves US$35.68 bln commuter rail plan
Plans to build a 247 billion yuan (US$35.68 billion) intercity rail link between Beijing, Tianjin and Hebei provinces were approved by the National Development and Reform Commission. The aim is to create a one-hour commuter link between the three provinces by 2020, National Business Daily reported.
Shandong tackles “zombie companies”
Shandong province will shut down or turn around 125 state-owned “zombie companies” by the end of this year, reported Xinhua news agency on Monday evening. The term refers to companies that have reported no profit in the past three years or have been running at half or less of production capacity. Shandong had identified 321 such zombies and planned to deal with them over three years.
Guizhou takes a shine to health-care industry
Guizhou province plans 320 projects in the health-care industry worth 524.8 billion yuan, Xinhua news agency reported Monday evening. Profit from Guizhou health care businesses in the first half increased more than 20% to 45.53 billion yuan, accounting for 9.2% of the province’s GDP.