10/13/2021 Financial News In China:The CCP Is Inspecting 25 Financial Institutions Including Financial Regulators; The Issuance of Special Government Bonds Speeding up

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1.The Eighth Round of Inspection Teams Stationed in 25 Financial Institutions Including the China Securities Regulatory Commission

CCTV News The latest news on October 13, approved by the Party Central Committee, the eighth round of inspections of the 19th Central Committee will conduct regular inspections of party organizations in 25 financial institutions including the People’s Bank of China, China Banking and Insurance Regulatory Commission, and China Securities Regulatory Commission.

A few days ago, the sixth inspection team of the central government stationed in the China Securities Regulatory Commission, the seventh inspection team of the central government stationed in Dongfang Company and Cinda Company, and the eighth inspection team of the central government stationed in China Development Bank and Agricultural Development Bank.

2.Speeding up the Issuance of Special Bonds

Since August, the issuance of new local government special bonds has accelerated significantly, and the monthly issuance scale has continued to set new highs during the year. Data show that the scale of new local government special bond issuances was 488.4 billion yuan in August and 523.1 billion yuan in September. As of the end of September, the cumulative issuance of new local government bonds during the year reached 2,366.1 billion yuan, and the issuance progress bar has been pulled to 64.82%. A few days ago, some media reported that the remaining new special bond quotas in various places must be issued before the end of November, and the special bond quotas will no longer be reserved for December. This means that the cumulative issuance of special bonds in October and November will reach 1,283.9 billion yuan, accounting for 35% of the annual quota.

3.China’s Q3 Exports Increased by 22.7% Year-on-year, and Imports Increased by 22.6% Year-on-year

On October 13, the State Council Information Office held a press conference on the import and export situation in the first three quarters. According to customs statistics, in the first three quarters of this year, the total value of my country’s foreign trade imports and exports was 28.33 trillion yuan, a year-on-year increase of 22.7%. Among them, exports were 15.55 trillion yuan, a year-on-year increase of 22.7%; imports were 12.78 trillion yuan, a year-on-year increase of 22.6%.In the first three quarters of this year, due to the impact of rising international commodity prices, my country’s import prices rose by 11.3% year-on-year. Among them, the average import price of iron ore, crude oil, copper and other commodities increased by more than 30%.

4.At the end of September, Foreign Institutions Held 3.84 Trillion Yuan in Bonds in the Interbank Market

The Shanghai Headquarters of the Central Bank issued a briefing stating that as of the end of September 2021, the interbank market bonds held by foreign institutions were 3.84 trillion yuan, accounting for approximately 3.5% of the total interbank bond market custody. In September, 12 new overseas institutional entities entered the inter-bank bond market. In September, the spot bond trading volume of foreign institutions in the inter-bank bond market was approximately 930 billion yuan, with an average daily trading volume of approximately 42 billion yuan.

5.Shenzhen Issues 5 Billion Yuan Offshore RMB Local Bonds in Hong Kong

On October 12, Shenzhen City issued 5 billion yuan of local government bonds in Hong Kong’s bookkeeping file. This was the first offshore RMB government bond issuance by a local government in the Mainland. The bond issuance period is 2, 3, and 5 years, and the raised funds are used for the construction of ordinary public high schools, urban rail transit and water treatment projects. The press conference was held in two venues in Shenzhen and Hong Kong Special Administrative Region. The bond issuance has received widespread attention and enthusiastic subscriptions from international investors and Chinese investors from countries along the “Belt and Road” routes, offshore RMB financial centers and other international investors.

6.The State Administration for Market Regulation Issued a Number of Important National Standards

The State Administration for Market Supervision has recently released a number of important national standards in the fields of energy, smart cars, and home building materials. Among them, a number of standards such as mandatory national standards for energy consumption quotas and mandatory national standards for energy efficiency involve the achievement of carbon peak and carbon neutral goals. Some new standards will be formally implemented 12 months after their issuance.

Liu Qiong, deputy director of the Department of Environment and Resources of the National Development and Reform Commission, stated at the special conference that he will strive to complete 100 energy-saving and carbon-reduction standards revisions covering energy efficiency, energy consumption quotas, energy bases and management during the “14th Five-Year Plan” period. Work to raise the level of energy-saving and carbon-reduction standards.

7.Beijing-Tianjin-Hebei and Surrounding Areas Will Implement Staggered Production in the Steel Industry

According to the news of the Ministry of Industry and Information Technology on October 13, the General Office of the Ministry of Industry and Information Technology and the General Office of the Ministry of Ecology and Environment issued a notice on launching the staggered production of the steel industry in the heating season of 2021-2022 in Beijing-Tianjin-Hebei and surrounding areas.

The notice pointed out that the work objectives are: the first stage: from November 15, 2021 to December 31, 2021, to ensure the completion of the target task of reducing crude steel production in the region; the second stage: from January 1, 2022 to 2022 On March 15th, with the goal of reducing the increase in air pollutant emissions during the heating season, in principle, the ratio of staggered production of iron and steel enterprises in the relevant regions should not be less than 30% of the crude steel output in the same period of the previous year. The implementation targets of staggered production are steel smelting enterprises.

8.Decline in IPO Approval Rate

Under strict supervision of new stocks, the IPO approval rate has quietly declined. From a single month point of view, the number of IPO companies that failed the review in September reached six, setting a new high for the year. At the same time, a total of 143 IPO companies voluntarily withdrew their orders during the year.

The review environment for IPO companies changed in September. A total of 62 companies went to the meeting for review throughout the month, including 23 on the Science and Technology Innovation Board, 27 on the Growth Enterprise Market, 8 on the Shanghai Stock Exchange Main Board, and 4 on the Shenzhen Stock Exchange Main Board, among which 6 were denied companies. , Suspend voting for 2 companies, and the overall audit pass rate in September dropped to 87.1%, which was significantly smaller than the 94.74% pass rate in August.

【G Translators- Financial Team】
Author: 和理非

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