Hi everyone. I’m Stephanie LI.
Coming up on today’s program.
China issues plan for building Guangdong-Macao in-depth cooperation zone;
Beijing stock exchange rules will be specified;
China's large internet companies post faster income growth in past 7 months.
Greater Bay Area, Greater Future
The Communist Party of China Central Committee and the State Council have issued a general plan for building a Guangdong-Macao in-depth cooperation zone in Hengqin on Sunday.
Hengqin, located in southern Zhuhai City in Guangdong Province, is just across the Macao SAR. The zone covers an area of about 106 square km.
The plan defines “4-new” strategic positions of the zone as a new platform to boost Macao's appropriate economic diversification, a new space that provides convenience to Macao residents' life and employment, a new model to enrich the practice of "one country, two systems," as well as a new high ground for building the Guangdong-Hong Kong-Macao Greater Bay Area.
According to the plan, the cooperation zone will develop sci-tech research and development and high-end manufacturing industries. Traditional Chinese medicine and other Macao's signature businesses, as well as industries including culture and tourism, conventions and exhibitions, and modern finance will be promoted.
The plan also stressed building an integrated new system with Macao featuring high-level opening-up. Under the system, declaration procedures for outbound and inbound goods between Macao and the cooperation zone will be further simplified. Inbound and outbound travel will also become highly convenient.
Innovative measures will be introduced in terms of cross-border financial management. A highly convenient mechanism for market access will be established, and efforts will also be made to facilitate the safe and orderly flow of internet data across the border.
Next on industry and company news
The new stock exchange to be set up in Beijing will generally continue the trading rules of the "new third board" selected layer, as an effort to embody characteristics of SMEs stock trading and ensure the continuity and consistency of market transactions. The Beijing stock exchange will not impose a limit on the price change on the first trading day, but trading will be suspended for ten minutes when stock prices rise by over 30 percent or drop by over 60 percent. Daily trading movements will be restricted within 30 percent after the first day of trading.
China's large internet companies saw their revenue and profits expand at a faster pace in the first seven months of this year, data from the Ministry of Industry and Information Technology (MIIT) showed. Revenue of these companies surged 26.3 percent year on year to reach 886.9 billion yuan during the period, while profits went up 28 percent to 84.29 billion yuan.
Beijing on Sunday unveiled measures including the opening of thousands of new stores in the next five years to build itself into an international consumption center city. The city will carry out specific projects including new consumption landmarks, new brands, digital consumption and the development of cultural, tourism, sports, education and medical consumption. Over 3,000 first, innovation and flagship stores of brands from both at home and abroad are expected to open by 2025 in Beijing.
China Evergrande Group’s contracted property sales dropped 26 percent from a year earlier to 38.08 billion yuan in August as the real estate market slowed, a filing showed on Friday, dealing a fresh blow to the cash-strapped developer.
Zhou Zixue, who has been in charge of China’s largest wafer foundry SMIC for six years, has resigned from chairman due to personal health reasons last Friday. Chief Financial Officer Gao Yonggang will replace him on an interim basis.
Brazil's government announced on Saturday the suspension of beef exports to China after confirming two cases of atypical mad cow disease in two separate domestic meat plants.
Switching gears to the financial sector
Overall financial risks in China have decreased and are generally controllable as regulatory measures take hold, according to an annual report released last Friday by the People's Bank of China. The report assessed the stability of China's financial system since 2020, and pointed out that the continued rapid expansion of the country's macro leverage ratio was curbed effectively, various high-risk institutions dealt with in an orderly manner, and risks related to shadow banking reduced.
Wrapping up with a quick look at the stock market
Chinese stocks closed higher on Monday with the benchmark Shanghai Composite Index closed 1.12 percent higher at 3621 points. The Shenzhen Component Index closed 2.59 percent up at 14546 points. The Hang Seng Index closed 1.01 percent higher at 26163 points.
And finally, as the flame has been put out at the closing ceremony last night, the 16th Paralympic Summer Games in Tokyo has finally come to a close. Chinese team completed wtih 96 golds, 60 silvers, 51 bronzes, and a total of 207 medals, the 5th consecutive time to top the final tally of golds and total medals at the Paralympics.
Biz Word of the Day
A Shadow Banking System is the group of financial intermediaries facilitating the creation of credit across the global financial system but whose members are not subject to regulatory oversight.
Executive Editor: Sonia YU
Editor: LI Yanxia
Writer & Host: Stephanie LI
Producer: XIANG Xiufang
Sound Editor: ZHANG Ran, Andy YUAN
Graphic Designer: ZHANG Ying
Co-produced by 21st Century Business Herald Dept. of Overseas News & SFC Audio/Video Dept.
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21世纪经济报道海外部 南财音视频部 联合制作