Photo: Wikimedia Commons
Photo: Wikimedia Commons

Monetary policy in 2017 expected to be tightened

The most important and market-moving stories from the Chinese-language media

The monetary policy in 2017 is likely to be tightened, a consensus of estimates said before the opening of the Central Economic Working Conference, the 21st Business Herald reported on Friday. As the head of the research bureau of the People’s Bank of China, Xu Zhong said in a forum on December 2, the growth rate of the economy in 2017 may be lowered to leave more space for deleveraging. If so, it may lead to a tightening of monetary policy next year, the report said.
防资产泡沫去杠杆 2017年流动性或进一步趋紧

China ‘is less dependent on foreign reserves’

The People’s Daily overseas edition published an opinion piece on Friday to urge people to abandon the “outdated thinking” that in foreign exchange reserves the idea should be that the more there is the better. In the past, it was believed accumulating more money in reserve could cover imports and stabilize the financial market. But nowadays, China has become less dependent on reserves in the context of the yuan’s internationalization, the paper said.
外汇储备并非越多越好

Capital outflows remain stable: SAFE

The outflow of capital and the purchasing of currencies other than the yuan remain stable in the country, the head of the State Administration of Foreign Exchange (SAFE) told Xinhua News Agency on Thursday. The October deficit of foreign exchange settlements and currency purchases by enterprises and individuals decreased 62% when compared to the first nine months this year, the report said.
国家外汇管理局:跨境资金流动总体稳定

Shanghai opens new exchange to reduce risks in commercial paper trade

Shanghai Commercial Paper Exchange Corp Ltd was launched in the city on Thursday aiming to improve the country’s financial infrastructure, reduce risks of fraud and create transparency in the commercial trade paper market, Caixin reported. The commercial paper market in China has quickly grown in recent years as small businesses see commercial paper trading as a way to meet their short-term financial needs. The new exchange secured its 1.85 billion yuan (US$269 million) in capital from 29 shareholders.
票交所正式成立央行系共出資約10億元

Shanghai issues first local government bonds

The city of Shanghai started issuing its first three-year local government bonds, which are expected to raise 3 billion yuan, Xinhua reported, citing information from China’s Ministry of Finance. The move in its free-trade zone hopes to boost capital inflows and make the Chinese yuan an international currency by welcoming foreign investors.
財政部:地方債首次在上海自貿區順利發行

29 billion yuan set aside for indirect coal liquefaction in Inner Mongolia: NDRC

China’s National Development and Reform Commission approved a 29.1 billion yuan investment on indirect coal liquefaction, a way to create liquid fuels, in Inner Mongolia on Thursday, sina.com reported. The Inner Mongolia YiTai Coal company aims to produce 2 million tons of liquid fuel a year at an estimated annual value of 13.1 billion yuan.
內蒙古200萬噸煤製油項目獲核准總投資約290億

More intelligent factories to be come

The penetration of intelligent factories, or digital workshops, in the manufacturing sector will reach over 20% by 2020, the China News Service reported on Thursday, citing the Ministry of Industry and Information Technology. “Intelligent Manufacturing” is to combine new IT and advanced manufacturing technologies at every step of production, which has become an important trend in the world, said Li Dong, the head of the ministry’s equipment office.
中国工信部:2020年智能工厂普及率超过20%

Construction starts on four hydro power stations

Building began on four pumped-storage hydroelectric power stations on Thursday, Xinhua reported, citing the State Grid Corporation of China. The power stations, in Liaoning, Jiangsu, Fujian province and Xinjiang, have a total investment of 37.5 billion yuan and are expected to start operating by 2024.
我國新開工四個抽水蓄能電站總投資375億元

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