China Digest

Economics and policy from China’s newspapers

Tuesday August 15, 2017

China joins North Korean import ban

The Commerce Ministry released a statement on Monday saying that all North Korea coal, iron, iron ore, lead, lead ore and seafood imports will be banned effectively on Tuesday, but goods that have already arrived at the ports will continue to be clear until September 5. China, which is North Korea’s largest trading partner, said the new package of bans are part of extensive UN sanctions aimed at North Korean leader Kim Jong-Un’s regime.

Beijing agency clarifies joint property rights

Temporary management methods on homes with joint property rights shared between the government and buyers has been published in Beijing for public review, the China News reported. The Beijing Municipal Commission of Housing and Urban-Rural Development said that homes with joint property rights can be treated as ordinary homes, with rights to help buyers obtain Beijing-registered permanent residence and get their children into local schools.

Commercial banks tally US$145.5 billion net profit

Commercial banks in China reached 970.3 billion yuan (US$145.5 billion) in net profit over the first half of this year, a 7.92% year-on-year increase, the Shanghai Securities Journal reported. The balance on non-performing loans hit 1.64 trillion yuan at the end of the second quarter, increasing 56.3 billion yuan, while its ratio reached 1.74%, in line with the first quarter figure.

CSRC unveils ratings on securities traders

Eleven securities traders earned the second highest “AA” rating, including GF Securities, China International Trust and Investment Corporation and China International Capital Corporation, the Economic Information Daily reported, citing the China Securities Regulatory Commission (CSRC). No trader qualified for the highest “AAA” rating, while Founder Securities and Southwest Securities trailed the list, receiving the third to the lowest “C” rating.

Zhengzhou to offer more rental homes

Zhengzhou, the capital city of central China’s Henan Province, is planning to provide 500 new home rental units by October, and around 2,000 units by the end of the year, the Paper reported. The city, which piloted the program and is aiming for a 20% market share by 2020, also plans to put forward regulations to help tenants receive local-registered permanent residence by the end of this year, the report added.

JD.com sees US$60 million Q2 operating loss

NASDAQ listed JD.com announced on Monday it suffered a 403 million yuan (US$60 million) operating loss in the second quarter of this year, Caixin reported. While sales reached new heights following the traditional Singles’ Day in June, operating costs and expenses also went up bringing pressure on its bottomline, the company said.

Pork prices likely to continue falling: WH Group

WH Group, the world’s largest pork producer, said on Monday it expects pork prices to continue falling in the latter half of this year, Caixin reported. Average pork prices in China have fallen 16.1% year on year, according to the report. The company also announced its mid-year results, showing a 2% year-on-year increase in overall revenue to US$10.66 billion.

Another acquisition for Sunac Holdings

Sunac Holdings has acquired 50% of the Heshan City Guanghong Real Estate company, according to a report by the Paper on Monday. The purchase of Guanghong, a realtor, was done through the Chuanghai real estate company, a subsidiary of Sunac. The conglomerate has been on an aggressive acquisition spree, with a record US$9.3 billion purchase of Wanda Group’s hotels and theme parks in July of this year.

Hong Kong trading hall to close in October

The trading hall at Hong Kong Exchanges and Clearing will be scrapped in October as share trading becomes almost entirely electronic, the Paper reported. The hall hosted more than 900 brokers in its heyday, while now around 30 traders show up daily on the floor. Similar markets such as Tokyo and Singapore don’t operate traditional halls anymore.