China’s Cabinet aims to cut borrowing cost for small private companies by 1 ppt in the fourth quarter and the banking regulator aims to raise the proportion of loans to the private sector in total new corporate loans to no less than 50 per cent in three year. Banks' shares were hit hard.
China’s securities regulator revised its rules on private share placements that would allow listed companies to issue additional shares more frequently, and for broader use, as part of efforts to help ease liquidity crunches facing listed companies.
"Barbaric" Expansion of Financial Holding Companies
The PBOC warns over high leverage and complex financing methods of financial holding companies such as conglomerates HNA and Fosun, saying their “barbaric” expansion poses systemic risks and will test new rules on five companies of the type including Alibaba's fintech unit Ant Financial.
Science and Tech Innovation Board and Registration-IPO System Coming
China is planning to launch a Science and Technology Innovation Board at the Shanghai Stock Exchange for a pilot progrm of registeation-based system for initial public offerings, said Chinese President Xi Jinping.
Real estate markets in China’s top-tier cities are feeling deeper chill these days. Home supplies surged in the first 10 months as developers are desperate for cash, while demands are getting weaker due to continued restrictions on purchases, tightening lending and strengthened expectation for home price declines.
Tight restrictions on bond issuance and bank lending and slowing home sales have left Chinese real estate developers no choice but to pay unusually high interest to get funds, in particular small-sized private developers. Some recently issued new shares to raise fund, their last resort.
Chinese securities regulator plans to cut the amount of time A-share listed stocks are allowed to stay suspended, addressing a longstanding concern that investors can be left stranded for months, unable to sell.
Chinese securities regulator said the three leading securities brokerages, which were fined for collaborating with the "foreign force" to short A shares during the market crash in 2015, were not guilty.
American Express became the first US credit card company to get the green light to start building its own payments network in China as Beijing seeks to show progress in opening its markets.
Chinese home appliance makers and mobile phone producers are rushing to build factories in India to take advantage of its cheap labor and huge market growth potential.
The PBOC sold its first yuan-denominated bills in Hong Kong on Wednesday, raising 20 billion yuan with coupons higher than market expectations, which is viewed as a move to help influence liquidity and discourage speculation as the yuan faces depreciation pressure.
China’s crude oil imports rose to all-time high on a daily basis in October, supported by record demand from private refiners and healthy margins. Its soybean imports jumped while iron ore imports dipped to a new low in four months.