China market today

1.The deputy governor of THE PEOPLE’S BANK OF CHINA Chen Yulu stated at the 2016 Fifth Financial Street Forum, on one hand, China’s financial industry has formed a diversified financial institution system, on the other hand, factors that influence financial stability is increasing continuously, the credit risks of financial institutions are exposed quickly. In addition, he also said that THE PEOPLE’S BANK OF CHINA will steadily build target rate and the interest rate corridor mechanism.

2.Vice chairman of the National People’s Congress Financial and Economic Committee of the People’s Republic of China, Wu Xiaoling, said that the elimination of backward production capacity and the encouragement of innovative development are strategic measures of economic structure adjustment in China, decentralized Commercial Reform and clearing the “zombie companies” are policy measures to promote enterprise metabolism, and for these measures to achieve the expected results, laws of the market must be followed and the measures must be running on the track of the legal system.

3.CHINA TIMES news, according to the MSCI screening principle of the constituent stocks, A-share financial stocks will be the main constituent stocks. In addition, financial stocks also account for 60% in the existing MSCI China A50 Index. According to HUATAI SECURITIES predictions, financial stocks are expected to account for 40% in the future MSCI Emerging Markets Index, by then the A-share financial stocks will usher in a substantial capital inflow.

4.Vice-Chairman of CHINA SECURITIES REGULATORY COMMISSION (CSRC), Fang Xinghai, stated that, for the futures market, because of its very important role in determining the spot price and the expected future price, it plays a very important role in decentralizing the financial system risk and enterprise risk management, therefore it will need a vigorous development. At the same time, CSRC will continue to focus on the fundamental purpose of serving the real economy, to further improve the multi-level equity markets.

5.The Economic Observer news, the public rental housing construction in China has come to an intersection, the once unified national large-scale construction is exiting the stage of history, in order to meet the housing needs of residents, while adapting to the new pattern of China’s real estate market, the competent department of housing security began to focus on cultivating the rental market.

6.The State Administration of Grain agreed for CHINA GRAIN RESERVES CORPORATION to initiate the execution plan of 2016 the minimum purchase price of wheat in Anhui Province starting from May 31st and in Hubei Province starting from June 1st. In situations like the domestic grain periodic supply and demand easing and low market prices, initiating the execution plan of the minimum purchase price of wheat in the main producing areas can promote stability of grain prices and protect farmers’ interests.

7.CHINA BANKING REGULATORY COMMISSION Vice-Chairman Guo Ligen stated at the 2016 Fifth Financial Street Forum that, at the end of the first quarter, non-performing loan ratio of commercial banks was 1.75%, which is still at a relatively low level from an international point of view, and the overall banking risk is still within the controllable range. In addition, it is necessary to further expand channels and methods for private capitals to enter banking industries and therefore to cultivate financial institutions closer to grassroots.

8.Cankaoxiaoxi.com news, the scale of overseas investment by Chinese investors soared. According to institutional data, in 2016, Chinese companies so far have conducted 47 units of completed or ongoing purchases of US commercial real estate, the total amount of the transaction was $ 9.3 billion. Analysts said Chinese investors want to maintain value of their wealth through overseas investments .

9.Caixin Online news, China Railway Corporation recently issued a locomotive and rolling stock tender notice. The plan is to purchase 195 high-power AC drive six-axis 7,200kW electric locomotives and 2,150 SQ6 railway wagons, with a total amount of about 4 billion yuan. This is the first time for China Railway Corporation to purchase railway wagons specialized for automobile transportation in large-scale.

10.China Insurance Regulatory Commission Vice-Chairman Zhou Yanli stated on 29th, China had a insurance premium income of 2.4 trillion yuan in 2015, and has already become the world’s third-largest insurance market. The next ten to twenty years will still be an important strategic opportunity period for Chinese insurance industry to achieve leap-forward development, and it can be an opportunity to have a brilliant future.

11.Xinhua News Agency learned from Chinese Academy of Sciences, China’s first quantum science experimental satellite will be launched at some chosen time in July this year. It will be the first time to establish quantum communication between satellites and ground in the world and to build a space-ground integrated quantum encrypted communication and scientific experiment system.

12.GF SECURITIES Strategic Research Report stated, if the “structural adjustment” was eventually verified in the “real thing”, before lifting the market risk appetite once again, one should be aware of the tail risks brought by the reform pains. Investors are advised not to rush to do the left side of the opening, but continue to hold together at lower positions of “the new white horse” or “the intersection of structural adjustment and steady growth .”

13.Xinhua News Agency messages, due to the sluggish sales, inventory rising and the funding side tightness these three limiting factors added on each other, the range of the domestic steel price decline had further expanded. Iron ore market continues to go in the glide-path, and within one month, imported ore prices have fallen 30%. Analysis of relevant institutions believes that possibility of periodic oversold bounce for steel price in June cannot be ruled out.