CX Daily: China And The U.S. Pledge To Cut Methane Emissions This Decade
In Depth: Can China pull itself out of the economic doldrums?
China’s GDP growth is expected to slow even further in the fourth quarter as outbreaks of Covid-19 across the country, power shortages, surging raw material prices and property jitters continue to weigh on activity, adding pressure on policymakers to do more to support the economy.
Analysts say the government will need to ease fiscal and monetary policies to prop up demand while ensuring that the measures don’t derail efforts to curb carbon emissions and resolve long-standing problems such as the overheated housing market and high corporate and local government debt.
As the world’s second-largest economy plows through the final quarter of the year, here are five key things to watch for.
China and the U.S. pledge to cut methane emissions this decade
China and the U.S. pledged to work together to enhance climate action over the next decade in a joint declaration announced at the COP26 climate summit in Glasgow, noting that cooperation will include consensus on reducing methane emissions in the 2020s.
The two countries said that both sides “consider increased action to control and reduce such emissions to be a matter of necessity in the 2020s” as emissions of methane play “a significant role” in global warming, second only to carbon dioxide among major greenhouse gases.
FINANCE & ECONOMY
An index of the yuan against 24 other currencies has held in near-record territory for two straight weeks.
Yuan hits five-year high as exports surge
Surging exports and a wider yield spread have driven China’s yuan to its highest level in five years. Analysts say they expect the currency to continue appreciating over the long run.
The CFETS RMB Index, which tracks the yuan against 24 other currencies, gained nearly 6% this year to 100.83, near the record high of 100.84 reached Jan. 22, 2016. The index has held above 100 for two consecutive weeks.
The strong yuan reflects robust exports. China’s trade growth has remained well above pre-pandemic levels all year. Exports through October surpassed those for all of 2020. Shipments rose 27.1% in dollar terms last month from a year earlier to $300.2 billion. That was the 13th straight month of double-digit growth.
Stock exchange /
Beijing Stock Exchange to debut Monday with at least 81 listings
China’s new Beijing Stock Exchange (BSE) is set to start trading Monday with at least 81 listings, according to company filings released Wednesday.
All of the companies have been trading on the National Equities Exchange and Quotations, an over-the-counter market.
The BSE will be the third national equity bourse on the Chinese mainland, after the Shanghai and Shenzhen stock exchanges.
China’s October mortgage lending jumps as restrictions ease
Mortgage loans accounted for more than 40% of China’s new bank lending in October as banks moved to ease up on real estate lending restrictions amid concerns about the debt crisis at China Evergrande Group.
Banks extended 826.2 billion yuan ($129.3 billion) of new loans in October, down sharply from 1.66 trillion in September, data released Wednesday by the People’s Bank of China showed.
Of the new loans, 348.1 billion yuan were mortgages, an increase of 101.3 billion yuan from September, the central bank said.
Wang Tao: How sharp will China’s property downturn be in 2022?
Zhongjing Xinhua to sell Huishang Bank stake for $2.5 billion
Zhongjing Xinhua Property Management Co., a longtime shareholder of Huishang Bank, agreed to sell its holdings in the bank to Shenzhen Amer International Group for 16 billion yuan ($2.5 billion), the property manager said.
Zhongjing Xinhua and its affiliates are divesting all 1.977 billion of their shares of Huishang Bank, representing 14.23% of the bank’s total equity. The deal is pending approvals from Huishang Bank’s board and regulatory agencies.
Quick hits /
Opinion: China’s rapid-fire regulatory moves have unnerved investors. That could be bad for the real economy
Opinion: How China can meet the CPTPP’s data requirements (Part 2)
BUSINESS & TECH
China has approved seven domestically developed Covid-19 vaccines for public inoculation
China moves closer to clearing mRNA vaccines as Covid booster shots
Chinese regulators took a step toward clearing the use of mRNA vaccines as booster shots to protect against Covid-19.
An mRNA vaccine jointly developed by Chinese biotech company Walvax Biotechnology Co. and Suzhou Abogen Biosciences won administrative approval to conduct a Phase 3b clinical trial of the shot, Walvax told Caixin. Approval was granted to assess the efficacy and safety of using the mRNA vaccine as booster shots for adults inoculated with inactivated-virus vaccines, according to public records on the Ministry of Science and Technology website.
MRNA vaccines have shown higher efficacy as booster shots than inactivated-virus shots, Zeng Guang, former chief epidemiologist of the Chinese Center for Disease Control and Prevention, said earlier this week.
Real estate agency KE’s shares jump after reporting $276 million loss
New York-traded shares of Chinese residential real estate agency KE Holdings Inc. are up nearly a quarter since the company said Monday that it plunged more than 1.7 billion yuan into the red on the back of a one-third decline in existing home sales.
The rally, which suggests markets may have expected worse results from the Tencent-backed enterprise, comes as the liquidity crisis at developer Evergrande continues to spook the property market, regulators and investors, and amid tight regulations on mortgage issuance and house prices.
South China cities ease vehicle purchase limits to shift sales into high gear
Guangzhou and Shenzhen, two megacities in South China’s Guangdong province, will gradually relax restrictions imposed on purchasing hybrid gas guzzlers as part of efforts to stimulate auto sales — one of the country’s key economic growth drivers.
Guangzhou plans to issue 80,000 license plates for hybrid electric vehicles (HEVs) between next month and December 2022, compared with 50,775 in the first 11 months of this year and 25,913 in 2020, according to a document issued on Tuesday by the Guangdong government.
Quick hits /
Evergrande’s loss-making NEV arm to raise $64 million in share sale
Chinese shoppers force Alibaba to share Singles’ Day spotlight
Li Ka-shing adds hydrogen bet to bolster $31 billion fortune
Inside Hong Kong’s new M+ Museum
Recommended newsletter for you /
China Green Bulletin Premium - Subscribe to join the Caixin green community and stay up to date with the most exclusive insights on ESG, energy and carbon. Sign up here.
Thanks for reading. If you haven’t already, click here to subscribe.
- MOST POPULAR