1. Timely and moderate RRR reduction

 

The People's Bank of China announced on Nov. 25 that it would cut the reserve requirement ratio (RRR) for eligible financial institutions by 0.25 percentage points effective from Dec. 5, 2022, except for financial institutions that have already implemented a 5 percent RRR. It reflects the forward-looking nature of monetary policy, which is conducive to stabilizing market expectations, enhancing confidence of market players, improving and expanding demand, and creating positive conditions for implementing a package of policy measures to stabilize the economy and maintaining economic operation within a reasonable range.

 

2. Increasing the proportion of direct financing 

 

In recent years, China has advanced in-depth reform of its capital market by launching the sci-tech innovation board, reforming the growth enterprise market, establishing the Beijing Stock Exchange, making steady progress in registration system reform, optimizing bond market, and continuing to open up. To promote the proportion of direct financing to a new level, it is necessary to be driven by reform and continue to make efforts to improve the system.

 

3. Promoting the reform and innovation of private pension system

 

China announced the implementation of its private pension plan in 36 pilot cities and regions on Nov. 25. This means that the financial industry has embraced unprecedented opportunities in the field of commercial pension business. Relevant financial institutions must bear in mind the social needs, take pension business as the focus of supply-side structural reform, enrich the supply of products and services, and bolster the sustained and sound development of China's multi-tiered and multi-pillar pension insurance system. 

 

1. China's securities watchdog rolled out five measures on Nov. 28 to facilitate equity financing for real estate firms to bolster the property market. The measures include resuming mergers and acquisitions and supporting financing of real estate related listed companies, resuming refinancing of listed real estate companies and real estate related listed companies, adjusting and improving the listing policies of real estate companies in overseas markets, further giving play to the role of REITs in revitalizing the stock assets of real estate companies, and actively leveraging private equity investment fund.

 

2. The State Council has agreed to establish integrated pilot zones for cross-border e-commerce in 33 cities and areas, including Langfang. Cross-border e-commerce comprehensive pilot zones will be set up in those 33 cities and areas.

 

 

1. Data from Ministry of Transport showed that from January to October this year, China’s waterway freight volume and turnover increased by 4.8 percent and 5.5 percent year on year respectively. Cargo throughput and container throughput at China’s ports increased by 0.5 percent and 4 percent year on year respectively.

 

2. According to the State Administration Foreign Exchange, in October 2022, the export and import of China’s international trade in goods and services totaled RMB 3847.0 billion, up 5 percent over the same time last year. Of this, there was a surplus of RMB 408.8 billion in the trade of goods, and a deficit of RMB 56.7 billion in the trade of services.

 

3. Data from the National Bureau of Statistics showed that from January to October this year, the combined revenues of major industrial firms increased by 7.6 percent year on year, continuing to maintain a fast growth.

 

4. Statistics from China Center for Information Industry Development showed that China’s innovation index for specialized and sophisticated enterprises that produce new and unique products was 110.9, an increase of 12 percent over the same period last year.

 

5. According to the National Bureau of Statistics, in October this year, the value added of China’s high-tech manufacturing grew 10.6 percent year on year, with 1.3 percentage points higher in the growth rate over September, driving major industrial enterprises up 1.6 percentage points, 0.1 percentage point higher than September.

 

6. Shanghai saw its foreign trade value grow by 5.3 percent year on year to RMB 3.46 trillion in the first 10 months of this year, Shanghai Customs said. Its trade volume during the period accounted for about 10 percent of China's total.

 

7. According to China Federation of Logistics and Purchasing, from January to October this year, China’s logistics totaled RMB 275.4 trillion, an increase of 3.6 percent year on year.

 

8. According to China Association of Automobile Manufacturers, from January to October this year, the total import and export value of automobiles reached USD 205.06 billion, up 12.3 percent year on year. 

 

(Information Source: Economic Daily)