CBN丨China's top securities regulator unveils a 12-point plan to restore market confident
Hi everyone. I’m Stephanie LI.
大家好，我是主持人李莹亮。Coming up on today’s program.
China unveils 12-point proposition aimed at restoring investors’ confidence in A-shares;
Shenzhen is aiming for 6% GDP growth in 2022.Here’s what you need to know about China in the past 24 hours
China’s securities regulator on Monday unveiled a 12-point proposition that is intended to prop up the healthy development of listed firms whose operations face new challenges in front of current complexities, aiming at stabilising the capital market and revitalising investors’ confidence.
As part of the measures advocated to steady businesses’ expectations, the China Securities Regulatory Commission (CSRC), along with the State-owned Assets Supervision and Administration Commission of the State Council (SASAC) and the All-China Federation of Industry and Commerce (ACFIC), pledged to support financing of privately run firms through listings, mergers and acquisitions, and improve the supportive mechanism for private firms to issue bonds.
The proposition vows to support listed real estate companies to actively transform to a new development model according to the law and regulations, strengthen their own risk management, and promote the virtuous cycle and healthy development of the industry.
Monday’s statement also proposed measures including waiving initial and annual listing fees and online voting service fees for 2022 for firms in regions hit hard by COVID-19.
The proposition also plans to encourage social security funds, pension funds, trusts, insurance and wealth management institutions to allocate more funds into equity assets and invest more in the capital market, notably in shares of premium listed firms.
In an effort to stabilise investors, the proposition also calls for listed firms to buyback stocks and for major shareholders and board directors, supervisors and senior executives to take a long bet on their stock holdings and increase them in case of hefty stock drops.
China is endeavoring to make financial services more accessible and convenient for the 300 million new urbanites through measures including data sharing, targeted support and financial innovation, the China Banking and Insurance Regulatory Commission(CBIRC) said on Monday, as they have rigid demand for jobs, starting up businesses, renting or buying homes, childcare, education and medical care.
加强新市民金融服务：4月11日，银保监会召开新市民金融服务媒体通气会表示，围绕创业、就业、住房、医疗等新市民金融服务重点领域，多地银保监局因地制宜，细化监管要求，助力新市民安居乐业。按照《关于加强新市民金融服务工作的通知》要求，新市民主要是指因本人创业就业、子女上学、投靠子女等原因来到城镇常住，未获得当地户籍或获得当地户籍不满三年的各类群体，目前约有三亿人。Greater Bay Area, Greater Future
Shenzhen has set a GDP growth target of 6 percent for 2022. The added value of large industries is projected to grow by 5 percent, with investment in fixed assets rising by 5 percent, total retail sales of consumer goods by 6 percent and foreign trade by 2 percent, Shenzhen’s municipal government said on Monday. The city's GDP exceeded 3 trillion yuan in 2021, placing it third among major Chinese cities.
深圳预期2022年GDP增幅6%：4月11日，深圳市七届人大二次会议开幕，深圳市政府工作报告指出，2022年深圳地区生产总值预期增长目标6%左右; 经济社会发展的主要预期性指标为：规模以上工业增加增长5%，固定资产投资额增长5%，社会消费品零售总额增长6%，外贸进出口总额增长2%。2021年，深圳的GDP首次迈进3万亿元大关，位居中国第三。Update on COVID-19
The Chinese mainland on Monday reported 1,251 locally transmitted confirmed cases, with 994 in Shanghai, 171 in Jinlin and 16 in Guangdong, the National Health Commission said Tuesday. Nearly 23,300 asymptomatic infections were also reported yesterday.
The CBIRC and Ministry of Transport on Tuesday vowed to initiate series of policies targeting finance and traffic channels to keep the operation of domestic logistics system running normally during the country's latest omicron outbreak. The commission said it will offer loans to transport service providers and small-sized companies. Payment terms for truck drivers will be extended and the loan service for major transport units or companies will be processed through green channels.
Food delivery platforms offer free hotel and bonuses for riders during Shanghai outbreak. Meituan is making arrangements to offer free temporary accommodations to over 4,500 delivery riders and frontline logistics staff during their service in the pandemic-hit metropolis. Ele.me is securing riders’ basic lives by providing free medical equipment and accommodation subsidies.
企业为骑手提供免费住宿：美团联合上海多家爱心酒店、室内体育场馆及办公园区，为外卖骑手免费提供超百个住宿场所，预计可容纳4500名骑手及一线保供人员。饿了么通过免费发放口罩、防护面屏、提供免费住宿或补贴等多种措施，保障骑手生活。Next on industry and company news
The National Press and Publication Administration (NPPA) announced on Monday the approval of licenses for 45 new game titles, the administration's first approvals after more than eight months since the licensing was halted. The news swiftly rallied investors around Chinese gaming shares traded on US exchanges in pre-market trading, with gaming giant NetEase and video platform Bilibili leading the pre-market gains.
Sales of new energy vehicles (NEVs) in China surged 138 percent to 445,000 units in March, according to the China Passenger Car Association (CPCA) on Monday, while the overall retail sales of passenger cars in China tumbled 10.5 percent to 1.57 million vehicles, as supply chain disruptions weighed on production. China’s carmakers manufactured 2.24 million vehicles in March, 9.1 percent less than the same period last year.
Investors of China National Offshore Oil Corp (CNOOC) can start purchasing its stock today at 10.8 yuan per share at the A-share market. The state-owned oil giant will issue 2.6 billion shares and fundraising will be expanded to 32.29 billion yuan if the over-allotment option is full, the company said Monday.
Shares of SF Holdings rose after China’s largest express courier said it expects to return to profit in the first quarter of 2022. Net profit is likely to come in at between 950 million and 1.1 billion yuan in the first three months, versus a net loss of 989 million in the same period last year, the Shenzhen-based company predicted on Tuesday.
Luckin Coffee, which was fined $180 million by US regulators in December 2020 for faking sales, has successfully emerged from bankruptcy proceedings and is no longer classified as a debtor, the Chinese coffee chain operator said Monday.
瑞幸正式完成债务重组：4月11日，瑞幸咖啡在官网发布公告称，公司完成金融债务重组，未来在任何司法管辖区不再受到破产或破产程序的约束。Switching gears to the financial sector
China’s credit expanded faster than expected in March as Beijing turned to monetary easing to boost the economy. Banks extended 3.13 trillion yuan of new yuan-denominated loans in March, up 154 percent from February’s 1.23 trillion yuan, according to the People's Bank of China on Monday. Aggregate financing, a broad measure of credit to the real economy, reached 4.65 trillion yuan in March.
The 10-year US Treasury yields topped its Chinese equivalent on Monday for the first time in a dozen years, causing the China-US yield spread to end in negative territory. The US benchmark 10-year yield reached 2.77 percent on Monday, topping the 10-year Chinese yield which rose to 2.75 percent, official data showed.
中美10年期国债利差倒挂：4月11日，早盘美国10年期国债收益率一度上行5.5bp至2.764%，高于中国10年期国债收益率，后者持平上日中债估值报2.7525%。截至18时，美国10年期国债收益率回落到2.75%上下。Wrapping up with a quick look at the stock market
Chinese stocks rebounded sharply on Tuesday as authorities revealed plan to boost much-needed confidence in A-share, and tech stocks gained on Beijing’s approval of new video game licenses. The benchmark Shanghai Composite gained 1.46 percent and the Shenzhen Component rose 2.05 percent. Tourism, transport and consumer staples are among the top gainers. The Hang Seng Index closed 0.52 percent higher as the TECH Index gained 1.4 percent.
Biz Word of the Day
Bond yield is the return an investor realizes on a bond. The bond yield can be defined in different ways. Setting the bond yield equal to its coupon rate is the simplest definition. The current yield is a function of the bond's price and its coupon or interest payment, which will be more accurate than the coupon yield if the price of the bond is different than its face value.
Executive Editor: Sonia YU
Editor: LI Yanxia
Host: Stephanie LI
Writer: Stephanie LI, ZHANG Ran, CHEN Zihui
Sound Editor: ZHANG Ran, CHEN Zihui
Graphic Designer: ZHENG Wenjing, LIAO Yuanni
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21世纪经济报道海外部 南财音视频部 联合制作