5/13/2021 Financial News: April New Bank Loans Fall To 1.47 Trillion, Policy Makers Signals To Introduce Real Estate Tax

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1.Communist China April New Bank Loans Fall to 1.47 Trillion RMB

 (Reuters) – Communist China Central Bank announced on Wednesday that Chinese banks extended 1.47 trillion yuan in new RMB loans in April, lower than the Reuters poll median prediction 1.6 trillion RMB, down from 2.73 trillion yuan in March, decreased by 1.25 trillion yuan in April.

Broad M2 money supply grew 8.1% from a year earlier, below estimates of 9.3% forecast in the Reuters poll. Outstanding RMB loans balance was 181.88 trillion yuan, a year-on-year increase of 12.3%, slightly lower than the 12.5% ​​median value in the Reuters survey. The total social outstanding loans was 296.16 trillion yuan, a YoY increase of 11.7% at the end of April.

2.Communist China Policy Makers Signals to Introduce Real Estate Tax

(21CBH) A trial of real estate tax reform was discussed at a seminar held in Beijing by officials from Communist China’s Ministry of Finance, Budget Commission of the Standing Committee of the National People’s Congress, Housing Ministry and Taxation Administration, according to a statement on the finance ministry’s website. The participants listened to opinions on the trial from local officials and some scholars.

It is reported to be the third time for the regulatory authorities to directly discuss real estate tax issue since the beginning of this year. Judging from the policy statements in recent years, real estate tax has long been expanded from the pure real estate regulatory policy to local tax system and income distribution policy framework. Analysts believe that some details of this meeting also reflect that the real estate tax has progressed from the system design stage to the pilot promotion stage.

3.U.S. Tariffs Drive Drop in Chinese Imports

(WSJ) U.S. tariffs have led to a sharp decline in Chinese imports and significant changes in the types of goods Americans buy from China, new data show, with purchases of telecommunications gear, furniture, apparel and other goods shifting to other countries.

Nearly two-thirds of all imports from China—or roughly $370 billion in annual goods—were covered by tariffs imposed by the U.S. in 2018 and 2019. Tariffs now cover just half of Chinese exports to the U.S., or about $250 billion in goods annually, as U.S. companies buy more from other countries, according to a Wall Street Journal analysis of information from Trade Data Monitor. Vietnam has been an especially big beneficiary. It now ranks No. 6 globally for imports to the U.S., up from 12th as recently as 2018.

4.Major Stock indexes opened low, cyclical stocks continued to slump

(Ifeng) All the three major stock indexes opened low. The Shanghai Composite Index fell by 0.35%, the Shenzhen Component Index fell 0.32%, and the ChiNext Index fell 0.28%. Sectors such as cryptocurrency, medical beauty, wine making, tourism, and construction machinery were among the top losers, while cyclical stocks such as non-ferrous metals and coal continued to slump.

For Hong Kong stocks, the Hang Seng Index opened 0.21% higher, and the Hang Seng Technology Index rose 1.38%. Technology stocks rebounded, Kuaishou rose nearly 4%, Alibaba, Xiaomi rose more than 3%. Consumer stocks continued to grow, with Haidilao rising nearly 3%. The Central Bank open market will carry out a 7-day reverse repurchase operation of 10 billion RMB today, with a winning interest rate of 2.20%. The central parity of RMB against the US dollar was reduced by 4 basis points to 6.4258, compared to the central parity of 6.4254 on the previous trading day.

5.Communist China County Bans Birthday Parties in ‘Frugality Drive’

(Breitbart) The government of Funing county in Yunnan province issued a notice last week announcing that birthday parties, housewarmings, university admission, and graduation celebrations “would all be banned from this month,” the South China Morning Post (SCMP) reported on May 12. The decree also set forth new restrictions on weddings and funerals, “including a ban on cash gifts above 200 yuan (US$31) and ordering that funerals be held within three days of death,” according to the report.

Funing county’s celebration ban comes after Communist China’s central government proposed a frugality initiative in 2016 that targeted traditional Chinese weddings and funerals. In some rural Chinese communities, both weddings and funerals may involve hundreds of people, include several events spread out over several days — such as elaborate processions — and encourage guests to present cash gifts to the hosts. The Chinese Communist Party (CCP) said its frugality campaign aimed to create a more “civilized” and “clean” environment for traditional social celebrations while serving the central government’s efforts to alleviate poverty in rural China.

6.US Inflation Sees Biggest Jump Since 2008

Consumer prices jumped 4.2% in the 12 months through to April, up from 2.6% in March and marking the biggest increase since September 2008. Inflation, which measures the rate at which the prices for goods and services increase, was pushed up by higher prices for cars and food in April.

Prices of second-hand cars increased by 10% in comparison with March – the biggest monthly increase since records began. The Labor Department said that accounted for more than one-third of the overall jump. At the closing bell, the Dow stood at 33,587 after falling 2.0%. The S&P 500 fell 2.14% to 4,063, while the tech-focused Nasdaq index fell 2.7% to 13,031. Inflation is breaching the Federal Reserve’s target of 2% and this has raised fears it might need to raise interest rates to cool things down.

By 【Financial Team – Apple】
News Collection: 文罡、Apple

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