EM CREDIT SUPPLY: China Huaneng Group (HUANEN): New USD deal

The China Securities Regulatory Commission will focus on strengthening the resilience and risk resistance of the capital market, improving the inclusiveness and adaptability of the market system, and deepening market opening to a higher level, Securities Daily reported. Analysts cited by the newspaper said the regulator will need to step up IPO supervision while enhancing the regular delisting mechanism, improve corporate governance, optimise mergers and acquisitions, restructuring, and equity incentive systems, and promote a stronger sense of responsibility among listed companies.

China and U.S. delegations have reached basic consensus on arrangements to address their respective trade concerns following two days of talks in Kuala Lumpur, the People’s Daily reported. Both sides will now work out specific details and proceed with their domestic approval processes. Guided by the important consensus reached by the two heads of state in phone conversations earlier this year, officials held candid, in-depth and constructive discussions on several issues. These included U.S. Section 301 measures covering China’s maritime, logistics and shipbuilding sectors, the extension of suspended reciprocal tariffs, fentanyl-related tariffs and law enforcement cooperation, agricultural trade, and export controls, according to the report.

The People’s Bank of China is likely to cut the reserve requirement ratio in Q4 and resume treasury bond trading timely to support growth, prices, and the real-estate market, National Business Daily reported, citing Wang Qing, analyst at Golden Credit Rating. The PBOC is also expected to use outright reverse repos and medium-term lending facilities to continue injecting medium-term liquidity, limiting the potential for market interest rates to rise, Wang said. On Monday, the Bank announced a CNY900 billion one-year MLF operation, leaving October net medium-term liquidity injection at a high level of CNY600 billion, as it seeks to ensure ample liquidity and stabilise bond market sentiment, the report added.