Communist Party lays emphasis on finance sector, supply side reforms
The Communist Party of China concluded a two-day work-study session on economic reforms with a focus on finance sector, the Shanghai Securities Journal reported on Thursday evening. The party laid emphasis on financial security, and said it will continue to push supply side reforms this year, the report said. Reforms of capital markets and state-owned enterprises will also intensify. Other areas of reform indicated include the financial sector, where there will be an emphasis on regulatory oversight. The CPC stressed that economic and financial reforms will be to the fore ahead of the 19th Party Congress later this year.
Anbang units see heavy negative cash flow in 1Q 2017
Anbang Insurance Group’s units Anbang Life and Anbang Property & Casualty Insurance had negative cash flows of 5.7 billion yuan (US$827million) and 19.1 billion yuan respectively for the first three months in 2017, Caixin reported. The China Insurance Regulatory Commission’s tightening grip on the sector since 2H 2016 may have pressurised the insurer, the report added, citing an industry expert.
Beijing to use price controls, low-cost commercial housing to cool market
Beijing city sold eight parcels of land for a low-cost commercial housing scheme this month, Caixin reported on Thursday evening. Under the scheme, housing will cost typically 30% less than surrounding properties, the report said. The capital city intends to use this scheme, alongside price curbs, in an attempt to reign in the property market this year, Caixin said.
Market key to yuan internationalisation, PBOC says
Caixin reports that the People’s Bank of China deputy director, Fan Yifei, has stressed that the market will dictate the internationalization of the yuan. This is the second time in a month that central bank management have delivered this message. Internationalization is about the opening up of Chinese financial markets and is a long term goal, Fan told an audience in Australia.
Cities in Shanxi province introduce property subsidies
Linfen, Luliang, and Jinzhong, all cities in Shanxi province, are to attempt to reduce housing inventory by subsidizing targeted groups – including farmers, migrant workers and village doctors and teachers – in purchasing property, the Economic Information Daily reports, with payments ranging from 150 yuan (US$21) to 400 yuan per square meter.
Former Zhejiang province party chief named NPC committee vice chair
Xia Baolong, the former party secretary of Zhejiang province, has been made a vice-chairman of the National People’s Congress Environment Protection and Resources Conservation Committee, Caixin reports. Xia worked alongside president Xi Jinping at provincial government level, the report adds.
CBRC sanctions AMCs in seven provinces, to reduce local debt
The China Banking Regulatory Commission announced the setting up of local asset-machine companies (AMCs) in seven provinces on Tuesday, Shanghai Securities Journal learnt on Thursday afternoon. The provinces mentioned are Yunnan, Hainan, Hubei, Fujian, Shandong, Guangxi and Tianjin. Local-level AMCs are in charge of restructuring and dealing with bad debt, mainly from local government. The CBRC announced back in October last year that all local governments would be allowed to set up one local AMC.
China Minsheng says value of investments in fraud case previously overstated
China Minsheng has put the value of investments tied up in a fraud case it is investigating at close to 1.65 billion yuan (US$240 million), less than the figure of 3 billion yuan previously reported by media, the Shanghai Securities Journal reported on Thursday evening. A banking executive is alleged to have sold fraudulent wealth management products. Close to 150 clients were affected, the bank confirmed on Thursday, adding that it will continue to cooperate with authorities and work to improve its internal controls.
China becomes world’s sixth largest gas producing country
China’s annual natural gas production increased to 137.1 billion cubic meters in 2016, more than doubling from 67 million cubic meter cubes in 2007, Xinhua state news reports. The country’s underground storage was the ninth largest in the world, more doubling to 12.98 trillion cubic meters in 2016, from 6.1 trillion cubic meters in 2007.
Chinese foreign investment grows in belt and road countries
China has made US$2.95 billion in new non-financial direct investment in 43 countries under the belt and road initiative, accounting for 14.4% of total foreign investment for the first quarter of 2017, the Economic Information Daily reports. This is in contrast to the 50% drop in Chinese overseas investment overall during the same time, the report adds.
China Construction Bank Q1 net profit increases 3%; NPL ratio at 1.52%
China Construction Bank posted its first quarter results on Thursday evening, registering a net profit of 70 billion yuan (US$10.15 billion), Yicai reported, up 3% from a year earlier. The bank’s Non-Performing loan (NPL) ratio, an indicator of potential defaulting loans, was 1.52% at the end of March, in line with the end of last year. The volume of NPLs stood at 184.5 billion yuan, an increase of 5.82 billion yuan over the first three months of this year, the report said.