9/24/2021 Financial News In China: $71 Billion Added In Cash In Past Week To Calm Evergrande Nerves; Communist China Increases Australian Wheat Imports Despite Trade Stand-Off

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1.Communist China Increases Australian Wheat Imports Despite Trade Stand-Off

Communist China is snapping up Australian wheat despite a bitter trade stand-off between the two countries, as crop quality downgrades elsewhere lead to a global shortfall in output. The buying spree comes as Australia, a key global food supplier, is expecting a second consecutive bumper harvest, while Northern Hemisphere producers have been hit by adverse weather and drought. Communist China has imposed anti-dumping duties on Australian wine and barley and slashed purchases of Australian coal and beef during the long-running dispute, but is seeking out wheat as prices hover near eight-year highs.

2.NDRC: Power Supply and Price Hike Problems Should Be Solved Timely

Jiang Yi, deputy director of the Department of Physical Reform of Communist China’s National Development and Reform Commission, said on Friday that the challenges and difficulties facing the development of private enterprises are still significant and efforts should be made to continue to grasp the implementation of various reform and development tasks; for raw material price increases and recent power supply, etc., will be studied in a timely manner to solve.

Recently, with the “double control of energy consumption” policy implementation, China’s power restrictions and production restrictions have significantly expanded the impact on different fields. More listed companies issued announcements to disclose the impact, in addition to steel, cement, chemical and other high energy-consuming industries, and even photovoltaic and other industries began to be affected.

3.Finance Ministry Issues 8 Bln Yuan Treasury Bonds In HK

According to the Ministry of Finance website on September 23, the Ministry of Finance of Communist China issued RMB 8 billion treasury bonds in 2021 for institutional investors in the Hong Kong Special Administrative Region. The 2-year RMB 5 billion is with a subscription multiple of 3.08 times and an issue rate of 2.41%; the 5-year RMB 2 billion is with a subscription multiple of 3.3 times and an issue rate of 2.50%; and the 10-year RMB 1 billion (additional issue, with a coupon rate of 4.15%), is with a subscription multiple of 2.56 times and an issue price of $112.87, equivalent to a yield of 2.6986%.

According to the issuance arrangement, the second round of RMB 6 billion treasury bonds in 2021 will be issued on October 20, and the specific issuance arrangement will be announced separately on the Central Moneymarkets Unit (CMU) of the Hong Kong Monetary Authority.

4.Southbound Bond Link” Opens

A new channel for Chinese investors to purchase debt overseas launched Friday, with HSBC Holdings Plc and Standard Chartered Plc among the major banks completing early trades. The Central Bank of Communist China previously announced that the bond “Southbound Link” will go live on September 24, which means that the one-way Mainland/Hong Kong bond market interconnection, which has been running for more than four years, has been officially expanded to a “dual-lane”, facilitating domestic institutions to expand the scope of bond investment while further strengthening Hong Kong’s role as a bridge between Mainland and overseas markets. The program has an annual quota of 500 billion yuan and a daily quota of 20 billion yuan, both of which can be adjusted based on cross-border fund flows.

5.$71 Billion Added in Cash in Past Week to Calm Evergrande Nerves

Communist China’s central bank continued to pump liquidity into the financial system on Friday as policy makers sought to avoid contagion stemming from China Evergrande Group spreading to domestic markets. Communist China central bank has injected a net 460 billion yuan ($71 billion) of short-term cash into the banking system in the past five working days, including 70 billion yuan on Friday. That’s helping ensure sufficient liquidity throughout the Evergrande crisis, as well as meet extra demand for funds before China’s week-long holiday at the start of October. The cost of borrowing overnight fell to 1.68%, the lowest level since late July, down from 2.28% last week.

6.Capital Group Co Cut Stake In Wynn Macau, Down To 6.87%

Capital Group Companies Inc, a Wynn Macau Ltd shareholder, has reduced its stake in the Macau casino operator, grossing HKD102.5 million (nearly US$13.2 million) from the exercise, according to information disclosed to the Hong Kong Stock Exchange. The disposal on September 20, involved an aggregate of 17,294,000 shares in Wynn Macau Ltd, with the average per-unit price of the Hong Kong-listed firm’s stock at HKD5.9260, the disclosure record indicated. As a result, Capital Group’s long position in Wynn Macau Ltd reduced from 7.20 percent, to 6.87 percent. The Monday exercise marked Capital Group’s third disposal of Wynn Macau Ltd shares since January 21 this year.

7.China Southern Power Talks Over $4 Billion Abu Dhabi National Energy Stake Stall

China Southern Power Grid Co.’s talks to buy a roughly $4 billion stake in Abu Dhabi National Energy Co., the oil-rich emirate’s biggest utility, have stalled, according to people familiar with the matter. The two parties were in advanced discussions earlier in the summer about a 10% holding in the utility, known as Taqa, before negotiations hit a snag over valuation, the people said. It’s unclear if or when talks could be revived, they said. The discussions have also been seen as a sign of Beijing’s appetite for Middle Eastern assets and its growing influence in the region amid resistance from the Western world toward Chinese investments.

8. Greater Bay Area Reduces Personal Tax Rates For Second-Hand House Sales

The Taxation Bureau of Huizhou City, Guangdong Province issued a notice on the public consultation, intends to adjust the rate of personal income tax and land value-added tax for individuals transferring second-hand houses from November 1, 2021. According to the Notice, the rate of personal income tax for the transfer of second-hand residential properties by individuals (excluding individual industrial and commercial households) is adjusted to 1%, and the rate of personal income tax for the transfer of second-hand non-residential properties is adjusted to 1.5%. At the same time, the rate of land value-added tax for the transfer of second-hand residential properties by individuals is adjusted to 5%.

At present, the approved rate of personal income tax for transfer of second-hand residential properties in Huizhou is 2%, which will be adjusted to 1%.

【G Translators- Financial Team】
Author: Apple

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