#CNflow 2016.02.15-19

Published Monday 15th 2016, 13:30 HKT

Updated Thursday 18th, 15:00 HKT

As China comes back from a weeks Chinese New Year holiday, here’s some of the local headlines to kick off the Year of the Monkey, 猴年吉祥!

EQUITIES

Threat of margin calls looms for more listed Chinese firms who pledged shares as collateral in 2015. Data from Wind shows that in 2015, there were a total of 6,480 such loans, involving 1,367 listed firms, pledging a total of 174.9bn shares, with a total market value of RMB3.2tn. RMB300bn worth of stock at risk of forced sales 多家公司股权质押濒临平仓线

FIXED INCOME

PBOC issues new rules standardising trading on its interbank bond trading platform, in order to promote more corporate self fundraising. Qualified individual investors can purchase all bond types 《全国银行间债券市场柜台业务管理办法》 – 央行规范银行间债市柜台业务

Party Paper: More and more Chinese firms likely rely on bond issuance instead of bank loans 党媒:直接融资比重仍待提高

PROPERTY

Chengdu takes advantage of new PBOC rule, cuts mortgage down payments to 20% on first house purchases 成都主城区首套房首付可两成

Two-thirds of Chinese economists believe first tier city real estate prices will rise in 2016 H1. Survey taken by NBS China Economic Monitoring & Analysis Center 调查称一线城市房价或将上涨

30% of real estate developers likely bankrupt in Chongqing’s Shuangqiao Development District 重庆一开发区3成开发商或破产

Migrant workers are being called upon to buy up property oversupply in lower tier cities 五线城市农民工成购房主力

INDUSTRY

Rail freight rates reduced to help cut costs in over supply industries. Estimated to save coal industry RMB10bn. NDRC data shows in 2015, coal volumes transported by rail fell YoY 12.6% to 2bn tons 铁路降运费助煤企成本减百亿

19 listed coal firms profits posted fell RMB40bn in 2015 19家煤企去年净利减少400亿

FINANCE

UnionPay transaction volumes up 31% YoY during Spring Festival, to RMB312.1bn. Interesting to note in addition to the usual Asian tourist destinations, this year saw a jump in US and Canada transactions 春节期间银联卡交易额增长31%

MACRO

PBOC governor Zhou Xiaochuan’s interview with Caixin magazine, in English and Chinese. Take any public PBOC comments with handful of salt, particularly if PBOC takes unusual step to translate a media article into English 专访周小川

Chinese tourists spent RMB1.2tn overseas in 2015 去年国人境外消费1.2万亿

LOCAL

Shenzhen ranks first in country as most expensive place for a man to get married, in total, having to shell out RMB2.08mn. Followed by Beijing and Shanghai, both over 2 million 城市娶妻成本:深圳208万居首

SHADOW BANKING

Another shadow bank collapses, unable to return Rmb1.9bn in customers’ capital. Shaanxi based Xinqi Asset marketed ‘asset securitisation’ wealth management products promising annual returns between  13%-24%. In reality, client funds were diverted into real estate projects, mainly office buildings, in lower tier cities, where chronic oversupply has depressed local property prices. 5,000 investors are believed to have been affected. Some investors are now protesting outside the company’s Shanghai branch office. 鑫琦资产被曝陷19亿兑付危机 上海分公司遭围堵

Translation tagged in Zerohedge post: http://www.zerohedge.com/news/2016-02-18/bofa-asks-chinese-shadow-bank-failure-will-trigger-chain-reaction

Thumb monkeys, internet meme over Chinese New Year
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