PBOC will intensify financial risk monitoring on firms
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Risk monitoring on the debt, bank assets and liquidity of enterprises, will be emphasized in the next three months, said the People’s Bank of China’s third quarter report released on Tuesday, the Securities Daily said. Abnormal fluctuations in the stock market, insurance funds, asset management and online financing business will also be key areas to be watched, the report said.
Reform commission to set 2017 reduction targets
The National Development Reform Commission began a meeting with three inter-deparmental units on Tuesday to discuss setting capacity reduction targets on industries such as coal and steel for 2017, according to the Shanghai Securities Journal on Tuesday. The talks involved reduction of over-capacity, deleveraging and cutting costs. The report said the on-going meeting would make decisions based on President Xi Jinping as the “party core” to “scientifically determine” capacity cuts for 2017. The commission will also push forward the debt-for-equity swap plan next year. Targets on capacity cuts for this year were on track to be met and progressing well, the report said. The report did not specify when the targets for 2017 would be announced.
Local governments planning to speed up restructuring of state-owned enterprises
Shanghai, Guangdong, Shandong and Jiangxi have been formulating detailed plans – including eliminating outdated capacity, securitising assets and diversifying equity – to speed up the reform of state-owned enterprises, according to an Economic Information Daily report on Wednesday. The report cited the latest data from Tonghuashun, a stock trading app in China, that shows 63 state-owned companies out of 208 listed enterprises have suspended trading in Shanghai and Shenzhen stock market this year. Some 70% of the suspended state-owned companies are due to cross-industry restructuring.
National inspections on home prices launched
A nationwide special inspection scheme on the pricing of residential housing conducted by the National Development and Reform Commission and the Housing Ministry will be launched from November 10 to Dec. 10. Real estate developers and housing agencies will be investigated to see whether they have given accurate and full pricing information and disclosed all the available housing at one time in home sales.
Shenzhen residential valuations revised by 15%
Shenzhen real estate authorities have revised the valuation of residential properties in the secondary market by more than 15%, the National Business Daily reported on Tuesday. In some popular areas, the valuation is about 20%, the report said. Authorities previously revised the valuation on second-hand transactions on April 1. The review of valuations is aimed at increasig the cost of transactions to cool the secondary property market in Shenzhen, according to an analyst from Shenzhen Centaline in the report.
Evergrande Life warned over stock speculation
Insurance company Evergrande Life has been given a warning over its recent conduct in the stock markets from the China Insurance Regulatory Commission, a Caixin report said on Tuesday. The commission made it clear that short-term speculation in the stock markets – by buying and selling a large amount of stocks over a short period of time – is not allowed and will have negative impact on the industry.
LeEco denies defaulting on payments
LeEco, one of China’s largest online video companies, issued a statement on Tuesday denying media reports that it has defaulted on payments and the company is operating “as usual”. The news was reported by Securities Times, a paper under the division of the state-run People’s Daily, on Tuesday. LeEco, or Leishi Internet Information and Technology, has seen its stock price dropping by almost a third since the start of this year. The company’s stock fell 7% on Nov. 2, prompting chairman Jia Yueting to issue a statement to shareholders pledging to cut his income to 1 yuan and moderate the growth of the company.
Sports to be 900 billion yuan industry by 2020
An official blueprint was approved on Tuesday for the development of sports aiming to grow the industry to close to 900 billion yuan (US$132 billion) in value by 2020, Xinhua news agency reported on the same day. The State General Administration of Sports passed the blueprint on the development of all sports. It expects the land sports industry to be worth 400 billion yuan, aquatic sports 300 billion yuan and aerial sports to 200 billion yuan, according to the report. The approval of the blueprint is timely after a recently launched plan to develop ski areas in China from 2016 to 2022 to boost the sports and recreation industry, the report said.