China - PBOC, CIC, SAFE, NSSF, Central Huijin, NDRC etc.

[winston]

PBOC Bolsters Policy Guidance with 5 Focuses, Helps Cement Econ Foundation: Pan Gongsheng

The People's Bank of China and the State Administration of Foreign Exchange, convened a news conference this morning to brief on the relevant financial policies cementing the economy.

PBOC deputy governor Pan Gongsheng has seen no change to China's fundamentals of a long-term economic uptrend YTD.

However, he spoke of the new challenges and difficulties arising from a convoluted economic development landscape.

Accordingly, the central bank shall step up policy guidance with a focus on five aspects namely:-
1. Market entity
2. Effective investment
3. Cost reduction
4. Key areas and
5. Opening-up.

It has to reach out to the beleaguered groups and pivotal fields timely and precisely, thus helping to secure the economic foundation, he added.

Related News - State Council Mulls Faster Local Govt Special Bond Issue, Use with Bigger Support Scope

Source: AAStocks Financial News

[winston]

Five state firms in China to be revamped

China has approved turning five state-owned enterprises including China Resources, China Merchants Group and China National Building Material Group , into state-owned capital investing and operating companies, the 21st Century Business Herald newspaper reported.

These SOEs will be run on the lines of commercial enterprises and will be given priority for capital, the report said.

The other two SOEs are State Development and Investment Corporation and Baowu.

The government has been rolling out a pilot scheme to reform SOEs since 2014 and the five are among 19 firms in the first batch that have been given the green light for conversion.

Other SOEs in the pilot scheme include Cofco, China Poly Group, Cosco Shipping and China General Nuclear Power.

Source: The Standard

https://www.thestandard.com.hk/section- ... e-revamped

[winston]

CN End-Jul M2 Supply Hikes 12% YoY, Topping Forecast

PBOC announced that, at the end of July, China's M2 balance grew 12% yearly to RMB257.81 trillion, compared to the market forecast of a 11.4% hike.

Related News - HSBC Global Research: CN Real Estate Risk Escalating Consistently

Source: AAStocks Financial News

[winston]

Beijing stepping up support for policy lenders

Source: The Standard

Beijing increasingly relies on the semi-official lenders to support the economy while monetary easing is constrained by rising global interest rates.

The funding boost from PSL "could play a big role in coming months to support credit to targeted areas, such as infrastructure, manufacturing and also low-income housing.

The PBOC said it has extended its bilateral currency swaps with the European Central Bank, worth 350 billion yuan or 45 billion euros.

https://www.thestandard.com.hk/section- ... cy-lenders

[winston]

PBOC reaffirms policy support

China's central bank will step up credit support for the economy while keeping the yuan steady.

The economy rebounded at a faster-than-anticipated clip in the third quarter, but a more robust revival in the longer term will be challenged by continuing Covid-related curbs, a prolonged property slump and global recession risks.

As for stalled housing projects, Yi said the PBOC will make 200 billion yuan (HK$216.9 billion) in special loans to ensure work is completed.

Source: Reuters

https://www.thestandard.com.hk/section- ... cy-support

[winston]

US$400bil pension fund warns about debt risks

One of China’s biggest state-run investors is adding to the chorus of warnings over debt risks at the nation’s cash-strapped developers and local government financing vehicles.

The National Council for Social Security Fund, which oversees about US$417bil (RM1.9 trillion), has advised asset managers that handle its money, to sell some bonds including those from riskier local government financing vehicles (LGFVs) and private developers after a review.

Source: Bloomberg

https://www.thestar.com.my/business/bus ... debt-risks

[winston]

State fund buys ETFs as mainland markets bleed

China's state fund Central Huijin Investment bought exchange-traded funds yesterday and said it will boost its holdings in the future, continuing its support for the mainland's stock markets which suffered another rout yesterday.

Huijin started a round of support two weeks ago by increasing its stake in the Big Four state banks, which was taken as the regular measures by Beijing in order to prevent the stocks from further falling.

Yesterday, China's CSI 300 Index fell 1 percent to its lowest closing level since February 2019 while the Shanghai Composite Index, which broke the psychologically important 3,000-point level last week, slid 1.5 percent to a near one-year low.

The Star 50 Index, China's gauge of tech equities, is down as much as 1.9 percent, set for a sixth month of decline.

The Hang Seng Tech Index in Hong Kong, which also tracks listed Chinese companies, has dropped 11.3 percent this year.

The recent fall in global markets, a spike in jitters and a shaky US dollar "looks like global risks emerging," Zhang Chi, strategist of Sinolink Securities, said.

Systemic global risks could kill the rebound of A-shares in the bud, so "we don't see a market bottom this year," Zhang added.

Source: AP

https://www.thestandard.com.hk/section- ... kets-bleed

[winston]

China sovereign fund buys ETFs in new bid to boost stocks

China’s sovereign wealth fund bought exchange-traded funds on Monday, expanding its purchases beyond bank shares.

Central Huijin Investment Ltd., a unit of the US$1.4 trillion ($1.92 trillion) wealth fund China Investment Corp bought an undisclosed amount of ETFs and vowed to keep increasing its holdings.

Huijin may have purchased 10 billion yuan ($1.89 billion) in ETFs. The purchases may be focused on ETFs tracking technology-stock indices, which comes in line with regulators’ support of innovation.

The move came shortly after the sovereign fund bought about US$65 million of shares in the nation’s biggest banks this month,

China is considering forming a state-backed stabilization fund to shore up confidence in its US$9.5 trillion stock market.

Central Huijin’s two previous publicly announced moves to purchase ETFs, which occurred in June 2013 and July 2015, were both followed by gains of more than 20% in Shanghai stock indices within three months.

During the 2015 rout, Beijing tapped China Securities Finance Corp. as its main stabilization vehicle by allowing it to access as much as 3 trillion yuan of borrowed funds from sources including the central bank and commercial lenders. The money was used to buy stocks directly and provide liquidity to brokerages. Even so, the turbulence didn’t end until a year later.

Source: Bloomberg

https://www.theedgesingapore.com/news/c ... ost-stocks

[winston]

CN NDRC Vows to Expand Domestic Demand, Confident on Achieving Annual Socioeconomic Development Targets

Zheng Shanjie, chairman of the National Development and Reform Commission (NDRC) of China, remarked that the NDRC will endeavor to expand the domestic demand, in particular consumption demand, and bolster effective investments, in order to stabilize the fundamentals of foreign investment and foreign trade.

Zheng remained confident that China's economy will regain upward momentum in a steady manner over the fourth quarter, and that the full-year targets on socioeconomic development could be achieved.

Related News - CN Oct Caixin Service PMI Lifts Slightly to 50.4; New Orders Index Slides to YTD Trough

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

[winston]

China Investment Corporation to Promote Construction of Huijin Company's '3 Main Platforms'

From last Friday (12th) to last Saturday (13th), China Investment Corporation held the 2024 operations and management work meeting, summarizing the operation and management work in 2023, analyzing the current situation and challenges ahead and deploying the key tasks in 2024, according to China Investment Corporation's announcement.

The meeting emphasized that China Investment Corporation will fully commit in building a world-class sovereign wealth fund and a central-level state-owned financial capital trustee, and subdividing first-class financial enterprises in their respective areas.

Related News - CICC: No Obvious Improvement in CN Credit Demand; 1-, 5-yr LPR Cuts May be 20-30bps This Yr

One of the key tasks in 2024 is to promote the construction of the "three main platforms" of Huijin Company based on the new starting point to enrich, improve and upgrade equity management tools, make in-depth plans for the investment and operation of state-owned financial capital, and give play to the platform for risk disposal and market stabilization, so as to further strengthen, optimize and expand the state-owned financial capital.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN