China continues to issue supportive policies in sectors such as finance, taxation, social security and other fields to help small and medium-sized enterprises (SMEs) overcome the difficulties. The country will continue reducing taxes and fees for SMEs, and will urge relevant departments to roll out detailed rules and implement relevant policies. Third-party assessment will be conducted to evaluate the implementation of these supportive policies.
China Development Bank (CDB) will provide 360 billion yuan (US50.5 billion) of financing support to the Greater Bay Area (GBA) in 2020. The financing plan includes 290 billion yuan of loans. A total of 110 billion yuan will be spent on technology innovation and emerging industries, according to CDB.
Chinese banks' wealth management businesses remained stable, with the non-guaranteed bank wealth management products amounting to 25.9 trillion yuan (US$3.65 trillion) as of end April, according to China Banking and Insurance Regulatory Commission (CBIRC). As of end last month, 19 banks have been approved by the CBIRC to set up their wealth management subsidiaries, with twelve of them already in operation, according to the regulator.
China's State Administration of Foreign Exchange (SAFE) has eased regulations on foreign exchange settlements amid efforts to support cross-border e-commerce. With relevant certificates or electronic transaction information, foreign exchange settlements are allowed for individual market entities of international e-commerce entities, without taking up their annual foreign exchange purchase quotas.
China's annual two sessions, the policy-making meetings held by the country's top legislature and political advisory bodies, will officially start tomorrow. Postponed by two months, the sessions, which used to last for half a month, is cut short to one week this year due to the Covid-19. The two sessions will focus on further opening up and reforms, as well as how the country can boost its economic growth after the Covid-19.
China's number of 5G base stations in use has exceeded 200,000, according to the Ministry of Industry and Information Technology (MIIT). The country now has 128 million registered 4G users. Major telecom operators China Mobile, China Unicom and China Telecom say they will set up over 550,000 5G base stations by the end of 2020.
China's State Council, the People's Bank of China, China Banking and Insurance Regulatory Commission, and China Securities Regulatory Commission have rolled out guidance on the financial support for the construction of the Greater Bay Area (GBA). The guidance calls for improvements in the cross-border trade finance infrastructure and simplifies cross-border investment.
The People's Bank of China will support the financial institutions to speed up their digitalization reform. The central bank will also strengthen the supervision on the implementation of technology in the financial industry.
Chinese telecommunication giant Huawei announces that it will partner with a number of car manufacturers to form a 5G-enabled automobile ecosystem. The list of partners includes traditional carmakers like FAW Group and new energy car manufacturer like BYD. The initiative aims to speed up the incorporation of 5G technology in the automobile industry and develop 5G-enabled cars for the market.
Chinese e-commerce giant JD.com is said to relist in Hong Kong on May 25, according to a source talking to WenWeiPo. The company is now listed on Nasdaq. The potential re-IPO will likely to be the largest IPO in Hong Kong for 2020.
China will remove quota limit on QFII and RQFII schemes, according to the People's Bank of China and the State Administration of Foreign Exchange. As of March 2020, Chinese regulators have approved US$113 billion of QFII quota and US$712 billion RQFII quota. Foreign investors are allowed to choose in which currency and when they remit money through QFII.
The non-performing loan (NPL) ratios stay flat for most of China's large State-owned commercial banks in Q1 this year. The NPL ratios of the four out of the six largest State-owned commercial banks stays the same in Q1 compared to end 2019. Bank of China's NPL is up by 2 basis points to 1.39%, and Bank of Communications up 12 basis points to 1.59%. This indicates that the asset quality of major Chinese bank has remained stable overall.