China Digest

Economics and policy from China’s newspapers

Tuesday June 6, 2017

US$3.9 billion in cash missing from Huishan Dairy’s books

Huishan Dairy said it had 26.7 billion yuan (US$3.9 billion) in debt and 2.433 billion yuan is missing since March 31, Beijing News reported. Huishan said in March that it was in a debt crisis and executive director Ge Kun disappeared in the same month.

25 power suppliers, producers fined in Shanxi

The government fined 25 power suppliers and producers in Shanxi a 130 million yuan fine for colluding on prices when they signed an agreement at an industry convention in January last year in a major case, China News reported. Nine electricity firms and 15 independent power producers struck the deal, involving 8 billion yuan. Authorities issued notices to firms in April.

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Central bank resumes 28-day reverse repurchase

The People’s Bank of China resumed the 28-day reverse repurchase sales and suspended the 14-day one on Monday, Securities Daily said on Tuesday. Analysts believe the move will raise the cost of earning liquidity from the central bank, with commercial banks and securities firms probably raising the price of lending.

US$5.87 billion in Sichuan bonds to trade on Shanghai exchange

Sichuan will be the fourth provincial government to start trading its bonds valued at 40 billion yuan on the Shanghai Stock Exchange from June 8, the Shanghai Securities Daily reported on Tuesday. It joins Hebei, Shandong and the Inner Mongolia Autonomous Region.

25% rise in Bitcoin prices since withdrawals resumed

Bitcoin prices had risen 25% since the government allowed withdrawals to resume on huobi, OKCoin and BTCChina from May 31, Yicai reported. The price on the three platforms was close to 18,000 yuan as of June 5. Experts believe the increase has narrowed the gap between domestic and international prices on platforms such as Bitfinex and Bitflyer.

Foreign firms face tough cybersecurity law

A cybersecurity law that took effect on June 1 poses challenges for foreign businesses in the country, especially those who use their own infrastructure and information technology to collect and store data overseas, said Han Lai, a manager of Kroll Discovery, a global provider of regulatory investigations, in a Caixin report on Monday. The new law stipulates that personal information and import business data collected and produced should be stored in China for national security.

Online disclosure platform for web finance sites goes live

A government-controlled information disclosure platform for internet finance sites went online on June 5 and 10 web firms had registered, said the Paper. The registered companies would disclose 32 mandatory items of information, including finance status, legal representatives, trade size, loan balance, and financing.