Archive for ‘real economy’

14/03/2019

China to invest more in emerging industries

BEIJING, March 13 (Xinhua) — China’s emerging industries will become a major driving force for investment growth this year, the Economic Information Daily reported Wednesday.

China will increase policy support for and infrastructure investment in emerging industries in 2019, including commercial applications of 5G, artificial intelligence, industrial internet and internet of things, according to the National Development and Reform Commission (NDRC).

The country will cultivate emerging industrial clusters with market influence and distinctive advantages that can vigorously drive regional economic transformation, the newspaper quoted Ren Zhiwu, deputy secretary-general of the NDRC, as saying.

The Ministry of Industry and Information Technology also plans to promote the deep integration of the internet, big data and artificial intelligence with the real economy, and encourage innovation in new technologies and new forms of industry, the newspaper said.

Local governments will also step up support for strategic emerging industries in financial aid, technological innovation and the business environment. Efforts should be made to improve strategic emerging industries’ capabilities to innovate, said the newspaper.

Source: Xinhua

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04/03/2019

Spotlight: China’s new sci-tech board “good attempt” to boosting innovation, reform: U.S. experts

NEW YORK, March 3 (Xinhua) — The new stock-trading venue in Shanghai Stock Exchange  is a “very good attempt” to optimizing the multi-tiered capital market system and enhancing the capital market’s capability to serve the real economy in China, American experts said.

The science and technology innovation board, which pilots registration-based initial public offering (IPO) system, is “a very good attempt,” and “it may be adopted by A-share markets in the future,” said Henry Huang, professor with Sy Syms School of Business, Yeshiva University.

“If high-tech companies grow and expand in the sci-tech innovation board, maybe they will get listed in the A-share markets later to attract more qualified investors, which makes the sci-tech innovation board an incubator of quality enterprises,” Huang said.

Kevin Chen, chief economist with U.S. wealth management firm Horizon Financial, agreed.

The new board will “largely improve” financing environment for high-tech companies, thereby accelerating the progress of sci-tech innovation in China as a whole, he said.

The adoption of registration-based IPO system will “make shell companies meaningless, while real values of listed companies will be shown in their share prices through more appropriate supervision mechanism,” Chen said.

In addition, the new major reform will facilitate Shanghai’s transformation into an international financial center as well as a science and technology innovation hub, said Allen Tjiong, president and CEO of BOC International (USA) Inc.

“These reforms are essential in making Shanghai a more competitive and attractive capital market for technology companies to raise capital,” said Tjiong.

China’s top securities regulator on Friday released regulations on the science and technology innovation board, which pilots registration-based IPO system. The regulations took effect on March 1 on a trial basis, according to the China Securities Regulatory Commission (CSRC).

The new stock-trading venue focuses on companies in high-tech and strategically emerging sectors such as new generation information technology, advanced equipment, new materials and energy, environmental protection, and biomedicine, according to the CSRC.

Under the pilot registration system, eligible companies can become listed by filing required documents. Currently, new shares of the A-share markets are subject to approval from the securities watchdog.

Source: Xinhua

26/02/2019

Chinese vice premier stresses environmental protection, support for real economy

CHINA-YUNNAN-HAN ZHENG-INSPECTION (CN)

Chinese Vice Premier Han Zheng (2nd R), also a member of the Standing Committee of the Political Bureau of the Communist Party of China Central Committee, inquires about production of Yunan Baiyao Group in southwest China’s Yunnan Province, Feb. 26, 2019. Han Zheng made an inspection tour to southwest Yunnan Province from Sunday to Tuesday, where he examined protection of Erhai Lake and visited local companies. (Xinhua/Wang Ye)

KUNMING, Feb. 26 (Xinhua) — Chinese Vice Premier Han Zheng has called for continued efforts on environmental protection and support for the real economy to ensure a good start for this year’s economic and social development.

Han, also a member of the Standing Committee of the Political Bureau of the Communist Party of China Central Committee, made the remarks during an inspection tour to southwest Yunnan Province from Sunday to Tuesday, where he examined protection of Erhai Lake and visited local companies.

Efforts should be made to ensure sustainable and healthy development of the economy and maintain overall social stability, Han said.

He recognized the outcomes the country has achieved in the protection and pollution treatment of the lake, and urged consistent efforts to win the lake’s pollution battle.

During a tour to a biotech company, Han urged it to use the unique natural resources of the province and independent innovation to explore the global market.

He also underlined efforts to push forward state-owned enterprise (SOE) reform, foster internationally competitive national brands, increase input in research and development, and enhance mixed ownership reform of SOEs.

Source: Xinhua

16/02/2019

Bank lending for ‘real economy’ key to boost China growth – central bank official

SHANGHAI (Reuters) – China should encourage its banks to support smaller, private firms in the real economy, rather than forced lending or policies such as quantitative easing, a state newspaper quoted a central bank official as saying on Saturday.

“The central bank doesn’t wish to use administrative methods to require banks (to lend),” Sun Guofeng, head of the monetary policy department at the People’s Bank of China (PBOC), told the Financial News, a bank publication.

“It wants to establish positive encouragement mechanisms though monetary policy tools to encourage banks to actively increase their support for the real economy, especially towards smaller and privately-owned firms,” Sun said.

The comments come a month after Sun wrote a commentary in which he argued that problems with timely capital replenishment, bank liquidity gaps and poor rate “transmission” are three major constraints on banks’ supply of credit.

 

In the interview with the Financial News, Sun said monetary policy transmission had “noticeably improved”, showing that steps to enhance transmission mechanisms had been effective.

He said the central bank would increase the strength of innovation in monetary policy tools.

Perpetual bond issuance “is only one breakthrough” in reducing capital constraints on banks, Sun said, adding that “other methods” could be used in the future.

 

He said that quantitative easing was neither necessary nor possible at the moment, noting that under China’s financial system the significance of the central bank buying Chinese treasury bonds on the secondary market is limited, and that the PBOC is barred from buying the instruments on the primary market.

China’s banks made the most new loans on record in January following a series of moves to boost lending as authorities try to prevent a sharp slowdown in the world’s second-largest economy.

Source: Reuters

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