#CNflow 2016.01.11-15

Last updated: 15th 16:15 HKT

GOVERNMENT

Ministry of Finance issues new rules restricting state asset investment: Specifically, state assets may not be used to purchase shares, futures, corporate bonds, overseas investments or guarantees. 财政部:禁用国有资产投资股票

CREDIT

This year’s local government debt for bond swap quotas have already been approved: Reports indicate over Rmb3.2tn of local government debt for bond swap quotas have already been approved by central government, earlier than last year’s decision. Debts maturing next year are also eligible for this year’s bond quota. 超3.2万亿置换债额度提前下放

PROPERTY

Large property developers sales increased in 2015: 22 real estate developers had total sales over Rmb1.1tn, an average increase of 23.2% year on year. 4 developers had sales increases over 50%, driven by buoyant tier 1 markets. 22家房企去年销售1.1万亿元

SHADOW BANKING

Over Rmb220bn of real estate trust products to mature this year: 6% less than last year, total of 1,004 products, avg. yield 9.7%, which is up on 2015’s figure by 0.21%. 超2200亿地产信托今年待兑付

Number of troubled P2P platforms trebled last year: Total of 896 platforms had financial difficulties in 2015, up from 275 in 2014. 2015年P2P问题平台增至896家

LOCAL

Shenzhen’s GDP poised to surpass Hong Kong in 2016: In 2015, Shenzhen’s GDP reached Rmb1.75tn. Shenzhen already leads other Chinese tier 1 cities in terms of GDP per capita and area. 深圳GDP有望2016年超过香港 #CNtrend (see also ‘Shenzhen District Overtakes Hong Kong in GDP Per Capita‘)

 

Xi Jinping graces cover of The Economist…again

 

 

Chinese supplier to Apple and Samsung shuts down factory: Jiemian announced it will close its Hunan factory, sell off the land and buildings to pay off debts. 苹果三星等手机代工巨头陷连续亏损 停工还债 #CNtrend

Banks raise requirements for P2P platforms on reputation risks: Banks now require registered capital over Rmb50m, shareholders must include large SOE or listed company, and pledged deposits of up to Rmb20m. P2P资金存管临考:银行设高门槛监管商讨细则

Stockbrokers bumper year in 2015: Listed stockbroker profits totalled Rmb143bn, +149.24%. 18家上市券商去年净利润同比增长149.24%

Stockbroker commissions slump at start of new year: Average daily commission income down 42% YoY. 新年券商日均佣金收入减少42% #CNtrend

Insurance industry profits reach record high last year: Total nationwide income reached Rmb2.43tn, +20.02% YoY. 保险业去年净利创历史新高

Record M&A deals in China last year: According to data from CVSource, there were 9700 announced deals, up 24.30% YoY. Deals disclosing investment amounts totalled 7,944, with a total deal value of USD709.443bn. 2015中国并购交易规模创新高 #CNtrend

Chinese banks limit customer USD FX business: Some banks limit transactions to USD2,000 per customer. 换汇潮持续高涨 银行限制额度

Chinese banks discount mortgages in the new year: HSBC discounts by 12%, lowest rate on offer of 4.31%. 成都银行房贷利率最高打88折

Wanda slashes real estate sales target this year: Sales target reduced by 40% to Rmb100bn for 2016. 万达今年地产销售目标下调40% #CNtrend

China 2015 FAI reached Rmb2.5tn: NDRC approved 280 projects with a total investment value of Rmb2.5159tn. 2015年固定资产总投资2.5万亿

Guangzhou’s GDP predicted to have surpassed Singapore in 2015 预计去年广州GDP超过新加坡

Some rural banks cutting credit lines: Follows CBRC announcement last week to curb risks in bills financing. 部分农商行成消减信贷通道 #CNtrend

Official case brought against eZuBao for illegal fundraising: Accused of illegally raising Rmb70bn from 900k investors. e租宝被公安初步认定非法吸存

NPLs still rising in Chinese banks: Chinese bank bad loans increased to Rmb1.95tn in 2015, from Rmb1.43tn a year earlier. By September last year, 10 provinces banks had bad debt levels over 2%, with Inner Mongolia over 4% and Shanxi over 5%. 中国银行业新不良贷款增逾1倍

People’s Daily: CSRC needs to wake up: Government paper issues another Weibo message blasting the ‘inept’ regulator. 人民日报:股市监管者应清醒

Well-known Chinese professor loses 4 homes due to stockmarket losses: Guangdong based Ms. Liu Yue racked up another Rmb2m in debt borrowing from small loans companies and relatives, plus another Rmb600k in credit cards from 8 banks. 女博士炒股亏4套房 透支8张卡

Official: Over 80% of couples would like 2 children: 90 million couples eligible, but half are over 40 years of age. 官方:超八成人想生两个孩子

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China stealthily curbs new financial services
Chinese media news over the weekend draws attention to local government’s efforts to curb financial risks by suspending new registrations for net finance and private equity. Akin to ‘throwing the baby out with the bath water’, the actions appear slightly desperate measures to manage risk in this booming sector, and counter central government aims to develop China’s financial industry. Which is perhaps why these are being implemented as only local government measures, albeit covering all of China’s financial centres. #CNtrend

FINANCE – Shanghai suspends internet finance platform registration: Will also affect those providing financial information and outsourcing services. This follows other local governments that have tightened net finance supervision. Shenzhen announced a similar measure beginning this year, and in September, Ningbo banned net finance wealth product adverts. 上海暂停互联网金融平台注册 (see last week’s #CNflow on lease companies)

FUNDS – Rumours Beijing has suspended private equity fund registrations: Registrations including the following words are prohibited, investment, assets, capital, holding company, fund, wealth management, lease finance. Similar measures have been taken in Chengdu and Tianjin, amongst other places. One industry insider believes these measures are temporary, awaiting the release of new regulations. 传北京全面收紧私募注册登记 (see last week’s #CNflow on fund AUM)

MACRO – 13th Five-year plan plans to invest Rmb3.5tn in the rail network: The new investment will extend 30,000km of new track, to the China’s current rail network of 121,000km, the world’s second longest. 十三五铁路投资将达3.5万亿

TRUSTS – Medium sized trust company with Rmb1.6bn in troubled real estate projects: Caijing reports Xinhua Trust has a series of real estate projects which threaten principal and interest of Rmb1.6bn. The troubled assets are sizeable in comparison with the trusts net profit for 2014 of Rmb106m, a 80% fall from Rmb540m in 2013. At the same time the trust’s bad asset ratio leapt from 12.22% in 2013 to 43.16% by the end of 2014. 新华信托16亿地产项目”踩雷” http://stock.caijing.com.cn/20160111/4050937.shtml

TECH – Apple third highest taxpayer in Shanghai amongst the service industry: US mobile phone maker ranks higher than domestic banks, securities firms and steel conglomerates. Only Bank of Comms and SH Pudong Dev Bank ranked higher in 2015. Overall Shanghai tax revenues were up 22% year on year, breaking Rmb1trillion for the first time. 上海税收榜:苹果比宝钢多1倍 上海税收首破万亿 同比增22%

GOVT – Shanghai announces 20 year development targets: Land used for construction will no longer be increased, capped at 3200 sq.km. Permanent resident population will be limited to around 25 million. 上海公布未来20年发展目标

 

LHS – SH population growth RHS – SH population (to 25 mn)

 

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