2016-5-14 Today China Market

1.The People’s Bank of China data shows that in April, the increment of social financing scale is 751 billion yuan, the year-on-year growth is 307.2 billion yuan less; RMB loans increased by 555.6 billion yuan, the year-on-year growth is 152.3 billion yuan less. In late April, the broad money (M2) balance is 144.52 trillion yuan, a year-on-year increase of 12.8%, the growth is 0.6 percentage points less than the previous month.

2.HSBC Qu Hongbin believes that the credit data is weaker than expected. The early-stage heavy volume of credit returned, coupled with some urban policies of tightening mortgage lending are the main cause of the decline. Nevertheless, the first four months of total new loans and M2 growth rate are still remarkably higher than the corresponding period of last year. For a single month fluctuations, it should not be over interpreted. No credit conditions deteriorated significantly. The sustainability of credit in the future will largely rely on policy support.

3.The Ministry of Finance data shows that in April, the national general public budget revenue is 1.55 trillion yuan, a year-on-year increase of 14.4%; the national general public budget expenditure is 1.31 trillion yuan, a year-on-year increase of 4.5%. From January to April, the national general public budget revenue grew by 8.6% year-on-year; the national general public budget expenditure grew by 12.4% year-on-year.

4.In response to rumors of cross-sector private placements, China Securities Regulatory Commission stated to support refinancing and mergers and acquisitions of qualified listed companies, the current regulations and policies of refinancing and mergers and acquisitions do not have any change, any changes and adjustments in the future will be officially announced to the public.

5.National Development and Reform Commission said that private investment growth has declined this year, they will take a number of measures, including measures to step up the implementation of the introduced policy, and vigorously promote market access, so as to promote private investment stabilized. In addition, the third PPP will soon be available, the investment may well be over 600 billion yuan.

6.Economic Information Daily news, local debt issuance is significantly accelerated in the second quarter. As of now, 29 provinces and cities, including Sichuan, Qingdao, Ningbo and Hu’nan, have issued local debt. Most issuances concentrated after April. Issuances will be more frequent after May. Till now, the total amount has been over 2.2 trillion yuan, of which more than ninety percent is Replacement debt, which is more than 2 trillion yuan.

7.Shanghai Securities News messages, some city commercial banks have received regulatory notice that they are required to stop releasing new financial products with risk levels; and customers purchasing same financial products cannot be distinguished with different risk levels. For the financial capital on the assets end, no new requirements from regulators have been issued while financial capital for financial products of investment capital markets with risk levels remains unaffected.

8.China Banking Regulatory Commission issued “A Notice on the Specification of the Sale Agent Business of Commercial Banks”. Commercial banks can only consign financial products issued by financial institutions licensed by CBRC, CSRC and CIRC, except for government bonds, precious metals and other products stipulated by the CBRC. It is necessary for commercial banks to provide consignment products with risk rating.

9.Economic Information Daily news, in March 2016, the steel industry saw an end of 15 consecutive months of losses and ushered in its first profitable month. The steel industry is running with significant improvement as a whole. But at the same time, the cumulative loss in the first quarter still reached 15.126 billion yuan, a year-on-year loss increase of 44.26%. The difficult situation of the steel industry has not changed.

10.State Administration of Radio, Film and Television issued “A Notice to Further Improve and Specify the Management of Production Recording and Publicity for TV Plays.” It states that no name changing applications will be accepted during the TV play’s production recording and publicity stage. And in its repertoire overview between 1500 and 2000 words from the report of the TV play’s production recording and publicity, it is required to summarize the TV play’s ideological connotations and put social benefits as the top priority at all times.

11.China Securities Network news, the “Super High-Speed Railway” which is faster than aircraft was successfully tested in the United States. Shen Zhiyun, Professor of Southwest Jiaotong University and academician of the Chinese Academy of Sciences and Chinese Academy of Engineering, proposed the development of a vacuum (or low-pressure) tube system for ground transportation in 2004. China has been doing pioneer work for evacuated tube ultra high-speed magnetic levitation train, but it is still in the laboratory model test phase.

12.May 13th, Didi Taxi announced its progress in the latest round of financing as winning support from a number of institutions. Among them, Apple’s $ 1 billion investment in the current round is the single largest investment obtained so far by Didi. Data shows that Didi Travel now has more than 87% market share of Internet chauffeur-driven car-on-demand services, more than 99% market share of Internet taxi-on-demand service.

13.A survey from Wall Street Journal on May 12th reveals, about 31% of economists surveyed said the Fed would raise interest rates in June and 21% thought it would be in July, while another 31% expected it to wait until September. And most economists predicted that the Fed would raise interest rates in June in last month’s survey.