May 4th 2016 Today focus

1.In April, China Caixin manufacturing PMI was 49.4, lower than the critical value for 14 consecutive months, and the former value was 49.7. Caixin commented that all the sub-items of the manufacturing PMI declined. Among them, the output index returned to the critical value again, and experienced fluctuations. In general, the current basis of China’s economic recovery is not solid, and the economy is still at the repeated adjusting stage, so the government should continue to pay attention to the downside risks of the economy.

2.Minsheng Securities Guan Qingyou pointed-out that rising investment in manufacturing is often accompanied by a substantial adjustment of interest rates. With the steady investment of the infrastructure, real estate and manufacturing, the focus of the monetary policy will be transferred from preventing the risk of the stock debt into controlling the risk of the incremental debt, and this process may control the leverage by reducing the control on the side of the funds. It is expected that the interest rate fluctuation of the market will be increased.

3.The Academy of Social Sciences Yu Yongding believes that the proposal of the flexible and appropriate monetary policy reflects the dilemma of the monetary authorities. China’s overall economy is still in a state of deflation, and the economy is facing tremendous downward pressure. It will be too early to talk about the macro-economic policy turning from loose to neutral under the condition of inflation and weak growth.

4.The National Development and Reform Commission said that in order to enhance and optimize the metropolitan areas in the eastern regions as well as accelerate the development of the metropolitan areas in the mid-western regions, the planning compilation of the metropolitan areas in the cross-provincial administrative regions has been continuously carried out with relevant departments. Among them, the development plan of the metropolitan areas in the Yangtze River Delta has been formulated and submitted to the State Council for approval. At the same time, the planning of the metropolitan areas in the Northern Bay and Zhongyuan will be incorporated into the annual work schedule.

5.Securities Daily news, the loan rates of the first set of housing in Beijing becomes loose again. For the first set of housing, 85% of the interest rates dominate the mainstream position currently, and the number of banks implemented 83% of the interest rates have increased to 6, so the mortgage burden of house buyers can be reduced again. Hongkong Shanghai Banking Corporation (HSBC) with the lowest mortgage rates can implement 82% of the benchmark interest rates, but it requires the loan limit to be above 2 million yuan.

6.The State Council approved the overall urban planning in Hefei. The approval proposed that the urban planning in Hefei needs to pay attention to coordinatively develop the urban-rural areas; reasonable control of the city size; improve the urban infrastructure systems; build a resource-saving and environment-friendly city; and to create a good living environment and attach importance to the protection of historical and cultural features and landscape characteristics.

7.Beijing Business Today news, the current reform of public hospitals makes medical treatment difficult and expensive and chronic diseases of the compensation system for the medical cost through drug-selling profits hard to recover, while private hospitals bring false propaganda, excessive treatment and other violations. All of these have reflected part of the hospital markets going the wrong way. Therefore, the death of Wei Zexi will also force the “acceleration” of the market-oriented reform of the medical industry, which has been promoted for 30 years.

8.Ministry of Civil Affairs of the People’s Republic of China said that China has initially formed the home-based, community-based, institution-supplemented, and the multi-level pension service system combining the medical service with the nursing service. The reform of the pension service on the supply side will be vigorously promoted, and the pension services market will be fully liberalized.

9.China News Network messages, with the recent introduction of the reformative suggestions on the household registration system in Shanghai, there have been 29 provinces that have currently introduced the reform program of the household registration system. After carding the plans in every locality, it turns out that the cancellation of the nature classification between the agricultural accounts and non-agricultural accounts has been generally proposed in many places; many areas have lowered the threshold for the registered, and loosened the registration conditions.

10.Securities Times news, the “specification on using the organic electrolyte for super capacitors” drafted by Jiangsu Guotai Super Power Company has recently passed the national industry standard authorization meeting. This standard is the first National industry standard for super-capacitor materials.

11.China National Offshore Oil Corporation announced on 3rd, the 160000 cubic meters of Large Natural Gas (LNG) full containment tank construction project, which is the first completely independent technical design, constructed and Managed by China, has officially started construction in Putian, Fujian. It marks that China’s large LNG full containment tank technology has achieved the complete autonomy.

12.IMF believes that Asia-Pacific economies are expecting next year’s economic growth to slow slightly to 5.3%, but will still be a leader worldwide. The current global liquidity is abundant, but in high debt, the region corporate bonds and credit growth are still very strong. Therefore, the arrival of the inflation point for the credit and financial cycle may cause great risk to the economic growth.

13.The Federal Reserve of Australia (PRA) surprisingly announced a rate decline by 25 basis points, and the target of the cash rates has been reduced to 1.75%. The RBA said that the expectation of the economic growth improved and the expectation of inflation declined compared to the previous forecast under the impact of the easing policy. The action of China’s recent policy supports the short-term prospects; the downward risks to the global economic outlook are further increased.