09/15/2021 Financial News: China’s Economic Growth Momentum Continued to Slow in August; Air China Passenger Turnover in August Decreased by 53.1%

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1.China’s Economic Growth Momentum Continued to Slow in August

According to data released by the National Bureau of Statistics on Wednesday, from January to August, national fixed asset investment increased by 8.9% year-on-year, which was 1.4 % lower than that of July. In August, the total retail sales of consumer goods rose by 2.5% year-on-year, and the growth rate narrowed significantly by 6% from July. The value added of the industrial enterprises above designated size rose by 5.3% year-on-year, and the growth rate narrowed by 1.1% from July. None of the above data meet the estimates.

Prior to the release of the data, the median forecast of 7 institutions collected by Jiemian News showed that from January to August, fixed asset investment increased by 9.1% year-on-year; in August, total retail sales of consumer goods increased by 6.6% year-on-year, and industrial added value increased by 5.7% year-on-year.

2.Air China Passenger Turnover in August Decreased by 53.1% Year-on-year

On September 15, Air China announced that the Group’s consolidated passenger turnover, in terms of revenue passenger kilometers in August had decreased year-on-year and month-on-month. Passenger capacity input ,in terms of available seat kilometers, decreased by 40.6% year-on-year, and passenger turnover decreased by 53.1% year-on-year. The average passenger load factor was 57.6%, a year-on-year decrease of 15.4%.

3.The Central Bank Launches 600 Billion MLF Operations with Winning Bid Rate Unchanged

The People’s Bank of China announced on September 15 that in order to maintain reasonable and sufficient liquidity in the banking system, the People’s Bank of China launched a 600 billion mid-term lending facility (MLF) operation (including the renewal of the MLF maturity on September 15). And 10 billion yuan reverse repurchase operations. The MLF winning bid rate is 2.95%, maintaining the previous value unchanged. Today, there are 10 billion yuan reverse repurchase and 600 billion yuan MLF expires. Since this week, short-end interest rates have been online for two consecutive days. The Shanghai Interbank Offered Rate (Shibor) rose 13.1 basis points overnight to 2.296%. The 7-day Shibor rose 7.7 basis points to 2.28%. In terms of the performance of the repo interest rate, the weighted average interest rate of DR007 rose to 2.2884%, which was higher than the policy interest rate. The Shanghai Stock Exchange’s 1-day Treasury bond reverse repurchase rate (GC001) rose to 2.357%.

4.The Ministry of Commerce Recognized the First Batch of 13 National Processing Trade Industrial Parks

The Ministry of Commerce recently announced the first batch of 13 national processing trade industrial parks to guide the gradient transfer of processing trade. Among the 13 industrial parks, there are 5 in the central region, located in Taiyuan City, Shanxi Province, Bozhou City, Anhui Province, Jiyuan City, Henan Province, Jingzhou City, Hubei Province, and Changsha City, Hunan Province; 6 in the western region, each located in Guangxi Zhuang Nationality Autonomous Region Nanning City, Chongqing City, Meishan City in Sichuan Province, Guiyang City in Guizhou Province, Xi’an City in Shaanxi Province, Bortala Mongolian Autonomous Prefecture in Xinjiang Uygur Autonomous Region; there are two in Northeast China, located in Harbin City in Heilongjiang Province and Dalian City in Liaoning Province.

5.Second-hand Housing Prices in Half of the Cities Fell in August

On September 15, the National Bureau of Statistics released the changes in the sales prices of commercial housing in 70 large and medium-sized cities in August 2021. According to the housing price data of 70 large and medium-sized cities across the country, the number of newly-built commercial housing increased in August in 46 cities, 5 less than in July; the number of second-hand housing prices increased in 27 cities, a further 14 less than in July. According to Sheng Guoqing, chief statistician of the City Department of the National Bureau of Statistics, in August 2021, localities will fully implement the long-term real estate mechanism and continue to strengthen the regulation of the real estate market. The sales prices of commercial residential buildings in 70 large and medium-sized cities continue to decline overall.The cooling trend has been clear, and second-hand housing prices in half of the cities have fallen.

6.Lingang New Area Integrated Circuit Industry Alliance Signed with Sinan Semiconductor Super Accelerator

On September 15, the second China (Shanghai) Free Trade Zone Lingang New Area Semiconductor Industry Development Summit Forum was held in Shanghai Lingang. At this forum, Lingang New Area Integrated Circuit Industry Alliance and Sinan Semiconductor Super Accelerator held a signing ceremony.Sinan Incubator is a technology business incubator and accelerator brand built by Lingang Science and Technology Investment Company. It is the main force of Lingang Group’s scientific and technological innovation service carrier. Sinan Semiconductor Accelerator is an accelerator focusing on the semiconductor industry and will gather upstream and downstream enterprises in the semiconductor industry chain. Form close cooperation with industry leaders, professional investment institutions, and scientific and technological innovation service organizations to help settled semiconductor companies to flourish.

7.Central Bank: The Total Assets of Financial Institutions at Q2 Was 371.26 Trillion Yuan

On the 15th, the central bank released data showing that by the end of the second quarter of 2021, the total assets of Communist China’s financial institutions were 371.26 trillion yuan, a year-on-year increase of 9.1%. Among them, the total assets of banking institutions were 336 trillion yuan, a year-on-year increase of 8.6%; The total assets of the securities industry institutions were 11.27 trillion yuan, a year-on-year increase of 24.6%; the total assets of the insurance industry were 23.99 trillion yuan, a year-on-year increase of 9.2%.

The liabilities of financial institutions were RMB 337.63 trillion, a year-on-year increase of 8.9%. Among them, the liabilities of banking institutions were RMB 307.96 trillion, a year-on-year increase of 8.5%; the liabilities of securities institutions were RMB 8.51 trillion, a year-on-year increase of 27.8%; insurance institutions The debt was 21.16 trillion yuan, a year-on-year increase of 9%.

8.Authorities Stress on A Good Job on Purchase of Autumn Grain

According to a news from the National Grain and Material Reserve Bureau on September 15, in order to conscientiously implement the spirit of the Central Economic Work Conference, the Central Rural Work Conference and the No. 1 Central Document, and do a good job in the purchase of autumn grains in 2021, the National Development and Reform Commission, the National Food and Nine departments including the Bureau of Material Reserves issued a notice on earnestly doing a good job in the purchase of autumn grains in 2021.

【G Translators- Financial Team】
Author: 和理非

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JEC
JEC
7 hours ago

China Economy will also be severely effected by floods. The ‘poorly engineered” NorthSouth Water system, the one that eliminated necessary rivers, cut across river beds, and added more water to reservour systems (water paid for by cubic meter by local governments) has created real danger. The floods of the past two months were in part caused by two things, 1. water relocation and lack of capacity, 2. local communities refused to release PAID for water to keep dams/reservour in safe levels. Number 2 is the reason we are seeing “NIGHT TIME” dams/canals broken..the locals dont want to tell anyone they… Read more »