China Digest

Economics and policy from China’s newspapers

Tuesday February 21, 2017

Five provinces reprimanded for breaching law on issuing bonds

The Ministry of Finance has reprimanded five provinces for breaching the law on issuing bonds, Caixin reported on Monday, citing a January memo. Inner Mongolia, Shandong, Sichuan, Chongqing and Henan were required to provide an explanation by February 3, but failed to do so. Local governments breached the law last year by issuing guarantees and letters of support for bonds related to state-owned enterprises and other private organisations, it said. They can only issue local government bonds.

Guotai Junan Securities’ profit slumps nearly 40% in 2016

Net profit at Guotai Junan Securities slid 37.32% to 9.84 billion yuan (US$1.43 billion) in 2016, Caixin said. Revenue in 2016 also decreased to 25.76 billion yuan, a decrease of 31.47% from a year earlier. The company’s annual report also said Guotai’s contribution to the national “rescue fund” in the August 2015 stock rout stood at 15.96 billion yuan, which led to a 1.27% loss in 2016.

Guangzhou city official promoted to Guangdong provincial post

Ren Xuefeng, Guangzhou city’s party secretary, has been promoted to the post of Guangdong province’s party deputy secretary, Caixin reported, citing a government circular. Ren is now the third highest official in the province after party boss Hu Chunhua and governor Ma Xingrui. Ren, who has a background in engineering, started his political career in Tianjin in 2008 as a vice-governor of the province, before he became Guangzhou’s party secretary in late 2014, the report said.

32% of imported condoms fail quality inspection

The General Administration of Quality Supervision, Inspection or Quarantine found that 32% of imported condoms in 2016 failed quality inspections, The Paper reported. They included Japanese brands such as Okamoto and Jissbon. Loss of effectiveness before the expiry date and improper product labelling were among six reasons cited for failing the quality tests, it said.

New board of directors elected at China Minsheng Bank

China Minsheng Bank has a new nine-member board of directors it announced on Monday evening, with the current acting president Hong Qi elected as chairman, Caixin said. It also said majority shareholder Anbang Insurance Group now has three members on the board.