Capital outflow in 2016 down by US$128.2 billion
The deficit of foreign exchange settlements and sales in 2016 stood at US$337.7 billion, contracting by US$128.2 billion from last year, the 21st Century Business Herald reported. The current capital outflow mainly attributed to domestic investors’ overseas investments, said Wang Chunying a spokesman of the State Administration of Foreign Exchange. After domestic investors pay back their foreign debts, foreign capital saw a net inflow to China, he added.
Emerging Industries PMI for January indicates contraction
The Emerging Industries PMI was 51.9% in January, decreasing 7% from last month, showing signs of contraction as companies suspended operations for the Lunar New Year or Spring Festival holidays, reported Shanghai Securities Journal on Friday. The index was coined and released by Chinese Academy of Science and Technology for Development and Zhongcai Consultancy, aiming to create a domestic Purchasing Managers Index by measuring 13 sub-indicators.
China Oceanwide, IDG Capital buy tech magazine publisher IDG
International Data Group (IDG), publisher of the PCWorld magazine, said it was being taken over by China Oceanwide Holdings Group and IDG Capital, a Caixin report said on Thursday evening. China Oceanwide is a private conglomerate with media, technology and real estate interests. IDG Capital is China’s first tech venture firm, independently operated with IDG as one of its limited partners. The value of the deal was not disclosed.
2016 GDP growth rate is 6.8%
The National Bureau of Statistics released its Gross Domestic Product on Friday and economic data for 2016. China’s GDP growth rate for 2016 is 6.7% and fourth quarter growth is 6.8%
Debt-for-equity swaps a financial innovation: CCB
Chen Caihong, the board secretary of China Construction Bank, said on Thursday that the debt-for-equity swaps should be called a “new financial services platform,” reported Caixin on Thursday evening. Chen said the bank excluded zombie enterprises or firms with high levels of bad assets, and companies chosen should have “high development potential,” the report said. The CCB has signed swap deals worth close to 235 billion yuan with 11 firms, the report said.
Shenzhen sets price controls on serviced apartments
The Shenzhen Municipal Planning and Land Resources Commission was strengthening price controls on prices for serviced apartments, reported Caixin on Thursday evening. The purchase price reported to the government cannot be “significantly higher” than similar ones in the surrounding area, the report said.