MNI China Daily Summary: Tuesday, Oct 28
POLICY: China must strengthen its domestic economic cycle to ensure stability and resilience amid rising global uncertainty, President Xi Jinping said in the Explainer on the Proposal of the CPC Central Committee on Formulating the Fifteenth Five-Year Plan, released by state media Xinhua.
POLICY: China has signed an upgraded Free Trade Agreement (FTA) with ASEAN nations, according to the Ministry of Commerce.
POLICY: China will ensure economic expansion and promote the efficiency of growth over the next five years, while developing equity, bond markets and derivative markets, including futures and asset securitisation, according to the Proposal of the Party's Central Committee to the 15th Five-Year Plan.
POLICY: China will step up inclusive policies that directly benefit consumers and increase government spending on safeguarding people’s livelihoods, so to vigorously boost consumption, according to the Proposal of the Party's Central Committee on the formulation of the 15th Five-Year Plan published by Xinhua News Agency.
LIQUIDITY: The PBOC conducted CNY475.3 billion via 7-day reverse repos, with the rate unchanged at 1.40%. The operation led to a net injection of CNY315.8 billion after offsetting maturities of CNY159.5 billion today, according to Wind Information
RATES: The seven-day weighted average interbank repo rate for depository institutions (DR007) decreased to 1.5580% from 1.5818%, Wind Information showed. The overnight repo average rose to 1.4687% from 1.4529%.
YUAN: The currency strengthened to 7.1006 against the dollar from the previous 7.1109. The PBOC set the dollar-yuan central parity rate lower at 7.0856, compared with 7.0881 set on Monday. The fixing was estimated at 7.1031 by Bloomberg survey today.
BONDS: The yield on 10-year China Government Bonds was last at 1.8110%, down from the close of 1.7975% previously, according to chinamoney.com.cn.
STOCKS: The Shanghai Composite Index fell 0.22% to 3,988.22, while the CSI300 index declined 0.51% to 4,691.97. The Hang Seng Index dropped 0.33% at 26,346.14.
FROM THE PRESS: The State Administration of Foreign Exchange will introduce nine measures soon to facilitate cross-border trade, including expanding the scope of the pilot high-level opening of cross-border trade and the types of netting settlement services, Securities Daily reported citing Zhu Hexin, head of SAFE. Authorities will also coordinate the promotion of yuan internationalisation and high-quality opening of capital accounts, and deepen foreign-exchange management reforms in key areas such as direct investment, cross-border financing, and securities investment, said Zhu, noting that near-term policy introductions will also include implementing the integrated domestic and foreign currency fund pools for multinational corporations and the fund management for overseas listings of domestic enterprises.
The China Securities Regulatory Commission issued 23 measures to strengthen the protection of small and medium-sized investors on Monday, aiming to create a fair-trading institutional environment, Shanghai Securities News reported. Measures include strengthening monitoring of abnormal stock trading of listed companies at risk of delisting to prevent irrational speculation and urging those that have voluntarily delisted to provide protective measures such as cash options. Authorities will also promote the People's Court to increase the application of special representative litigation in securities disputes, the newspaper said.
Industrial enterprise profits increased by 21.6% y/y in September, accelerating by 1.2 percentage points from August, amid policy support and market-demand recovery, Securities Daily reported citing data by the National Bureau of Statistics. Companies’ operating income profit margins were 5.49%, a year-on-year rise of 0.85 percentage points, increasing for two consecutive months, the newspaper said. Among the 41 major industrial sectors, profits increased in 30 industries, accounting for 73.2% of the total, the newspaper added.
