CBN丨China's cross-border capital flows stable: forex official

Hi everyone. I’m Stephanie LI.

大家好，我是主持人李莹亮。

Coming up on today’s program.

重点提要 

• China’s forex official said the yuan's assets still have strong international appeal;

• OECD projects global economic growth to slow to 3.1% in 2022 and 2.2% in 2023.

Here’s what you need to know about China in the past 24 hours 

中国经济要闻

China's cross-border capital flows are stable and there is great potential for global capital to be allocated, given the international appeal of yuan financial assets, an official at the State Administration of Foreign Exchange (SAFE) said on Tuesday.

Since the beginning of 2022, China's foreign-related economic activities have remained active and the foreign exchange market has become significantly more resilient, providing a relatively sound foundation for strong and effective management of cross-border capital flows, said Lu Lei, deputy administrator at SAFE, at the 2022 Financial Street Forum.

According to Lu, in the first three quarters of this year, China had a current account surplus of $310.4 billion, the highest in history and up 56 percent year-on-year.

"There is still a significant net inflow of direct investment and cross-border capital flows are steady. At present, foreign capital accounts for less than 5 percent of China's capital market and bond market. There is great potential for global capital to be allocated," said Lu, adding that the yuan's financial assets still have strong international appeal and relatively independent income performance despite fluctuations in the global financial market.

Nicolas Aguzin, CEO of Hong Kong Exchange and Clearing Limited (HKEX), also said at the forum that with deepening reforms and innovation in connectivity, the size of the Chinese mainland's financial market is expected to increase to more than $100 trillion in the next decade or so. He added that there was significant interest in Chinese assets during his recent visits to Saudi Arabia, the United Arab Emirates and Singapore.

Christopher Hui Ching-yu, secretary for financial services and the treasury of HKSAR, also disclosed that Hong Kong will take measures to support the yuan's internationalization to consolidate Hong Kong's role as an offshore renminbi hub, such as amending laws to expand the exemption range of profits tax to encourage mainland local governments to issue debt in Hong Kong.

11月22日，国家外汇管理局副局长陆磊在2022金融街论坛年会上表示，我国外汇市场韧性明显增强，为有力有效跨境资本流动管理提供了良好的基础条件。

据陆磊介绍，今年以来，我国涉外经济活动保持活跃，前三个季度国际收支保持基本平衡，经常账户顺差达到3104亿美元，为历史同期最高值，同比增长56%；直接投资呈现净流入，跨境资金流动平稳有序。

具体到我国跨境资本流动管理，陆磊表示，外汇管理部门着力完善与新发展格局相适应的外汇管理体制机制，健全了外汇市场“宏观审慎+微观监管”两位一体管理框架，维护外汇市场稳健运行和国家经济金融安全。其中，宏观着眼于预调微调，重在预期管理；微观着眼于依法合规，重在尽职免责、越合规越便利。两者的结合，在多轮次高强度冲击下保持了外汇市场稳健运行。

陆磊表示，当前，尽管全球金融市场出现了波动，但我国国际收支结构稳健，人民币金融资产仍保持较强的国际吸引力，在全球范围具有相对独立的收益表现。目前全球资本进一步增配我国金融资产仍然有较大潜力。

同时，港交所行政总裁欧冠升在2022金融街论坛上表示，近期港交所前往沙特阿拉伯、阿拉伯联合酋长国和新加坡，分享港股市场的投资机遇。在整个行程中，他热切感受到人们对中国资产仍抱有极大兴趣。

“随着改革的深入、互联互通的创新和资本流动的加快，内地金融市场的规模有望在未来十年左右增加到100万亿美元以上。而港交所的离岸融资中心和离岸风险管理中心的地位将得到提高，国际吸引力也会得以提升。”他表示。

目前，香港是全球最大的财富管理中心之一，截至2021年底资产管理规模达4.6万亿美元。作为全球离岸人民币中心，香港拥有最大的离岸人民币资金池、最大的离岸人民币外汇市场，为推动人民币国际化将做出更大贡献。

香港特区政府财经事务及库务局局长许正宇在论坛讨论中表示，香港将从产品、基础设施建设以及流动性三个方面持续推进人民币国际化。许正宇表示，香港在金融层面是内外循环的交集点和汇集点，所以必须要持续推进人民币国际化。未来香港将从产品、基础设施建设以及流动性三个方面着手持续推进人民币国际化。

• World growth is set to slide from 3.1 percent this year to 2.2 percent next year, before rebounding slightly to 2.7 percent in 2024, the Organization for Economic Cooperation and Development (OECD) said Tuesday in its latest Economic Outlook. “The United States and Europe are slowing sharply," said the report. The OECD projected the U.S. economy would grow 1.8 percent in 2022, 0.5 percent in 2023, and 1 percent in 2024. Meanwhile, growth in the eurozone would slow from 3.3 percent this year to only 0.5 percent in 2023, before climbing back to 1.4 percent in 2024. The OECD also said that Asia's major emerging-market economies will account for nearly three-quarters of global GDP growth by 2023. 

  OECD预测全球经济2023年增长2.2%：经济合作与发展组织（经合组织）22日发布经济展望报告，预计全球经济2022年增速为3.1%，2023年放缓至2.2%，2024年增长2.7%。报告说，由于乌克兰危机引发的能源冲击继续刺激通胀，增加全球风险，预计未来一年全球经济增长将进一步放缓。报告预测，亚洲主要新兴市场经济体将在2023年占全球国内生产总值（GDP）增长的近四分之三。美国和欧洲经济增长正在急剧放缓。美国经济今年将增长1.8%，明年增速将放缓至0.5%；欧元区经济今年将增长3.3%，明年增速将放缓至0.5%；英国经济今年将增长4.4%，明年将负增长0.4%。

Next on industry and company news

产业及公司新闻

• Container throughput at China's ports and waterway cargo transport continued stable growth from January to October 2022, up 4 percent and 4.7 percent, respectively, data from the Ministry of Transport showed Wednesday. China remained the world’s highest level of maritime connectivity, accounting for 8 and 7 respectively of the top 10 ports in the world in terms of cargo throughput and container throughput, according to the ministry. 

  我国连续多年成全球海运连接度最高国家：交通运输部23日数据显示，今年1—10月，全国水路货运量、货物周转量同比分别增长4.7%和4.4%。港口货物吞吐量、集装箱吞吐量同比分别增长0.5%和4%。中国在全球港口货物吞吐量和集装箱吞吐量排名前十的港口中分别占8席和7席，连续多年成为全球海运连接度最高的国家。 

• JD.Com will cut the salaries of senior managers by 10 to 20 percent from Jan. 1 to improve benefits for ordinary staff and ease the pressure on the firm, according to its founder on Tuesday. The Chinese e-commerce giant will set up a 10 billion yuan housing fund to provide interest-free home loans to rank-and-file employees, Richard Liu said in an e-mail to staff, while Liu will also personally chip in 100 million yuan to a relief fund for employees’ children. It also plans to include outsourced staff of Deppon Express that JD bought in March as regular employees, and pay their social insurance premiums.

  京东高管降薪提升基层员工待遇：11月22日，京东集团创始人、董事会主席刘强东在给全体员工的邮件中宣布，要对员工和高管待遇进行“一升一降”，自2023年1月1日起，京东集团高级管理人员的现金薪酬降低10%到20%不等，但与此同时公司将提升基层员工的购房无息贷款等待遇。刘强东在邮件中提到，将为德邦现有员工自2023年1月1日起逐步缴齐五险一金。同时，公司将为基层员工设立“住房保障基金”，未来十年将投入数百亿元为基层员工提供购房无息贷款。此外，刘强东本人再捐款1亿元人民币，京东集团及各业务集团也会拿出一定比例的现金，大幅扩充“员工子女救助基金”的规模。

• Chinese electric vehicle maker BYD announced today that it would raise official guide prices for models in the Dynasty and Ocean series, as well as those in the Denza brand, by 2,000 to 6,000 yuan due to higher raw material costs and expiration of China's purchase subsidies for new energy vehicles. The price increases will take effect from Jan 1, 2023.

  比亚迪新能源车涨价：11月23日上午，根据比亚迪最新发布的消息，比亚迪汽车将对王朝、海洋及腾势相关新能源车型的官方指导价进行调整，上调幅度为2000元至6000元不等，具体车型的调价通知将另行发布。2023年1月1日之前付定金签约的客户不受此次调价影响。说明提到，根据国家对新能源汽车发展的系列政策及规划，新能源汽车购置补贴政策将于2022年12月31日终止，同时下半年以来电池主要原材料价格大幅上涨。

• Honor, a leading provider of smart devices in China, on Tuesday launched its MagicOS 7.0 operating system, which might be compatible with HarmonyOS and iOS in the future. MagicOS 7.0 consists of four core technologies -- MagicRing, Magic Live, Turbo X and MagicGuard, realizing the interconnection of different chip platforms and operating systems.

  荣耀发布MagicOS 7.0：22日荣耀MagicOS发布暨开发者大会上，荣耀最新一代全场景操作系统MagicOS 7.0正式发布。荣耀 MagicOS 全面升级软件系统架构，打造跨设备无缝协同、跨应用无缝流转的融合生态体验，亮点包括 MagicRing 信任环、Magic Live 智慧引擎、Turbo X 系统引擎、MagicGuard 荣耀安全四大平台级根技术及系统核心服务。

Earnings reports express

财报速递

• Shares in Baidu advanced today after the Chinese internet giant reported yesterday a 14 percent surge in operating profit, which refers to profit from its core businesses, in the third quarter from a year ago, marking the first quarterly growth since the second quarter last year. The turnaround was fueled by a gradual recovery in online marketing and the steady growth of its AI-powered businesses. Baidu logged a 16 percent jump in net profit to 5.9 billion yuan in the period, and revenue advanced 2 percent to 32.5 billion yuan. 

  百度三季度营收325.4亿元：11月22日，百度发布了三季度财报数据。得益于持续的降本增效举措，百度经营效率提升，盈利能力逐季修复。第三季度，百度实现营收325.4亿元，同比增长2%；归属百度的净利润（non-GAAP）达到58.9亿元，同比增长16%，超市场预期。其中，三季度核心经营利润同比增长14%，为2021年二季度以来首次正增长。百度智能云营收同比增长24%，增速高于行业平均水平，智能驾驶业务板块再次取得突破。

Switching gears to financial news

金融市场消息

• Agricultural Bank of China(ABC) signed bank-enterprise strategic cooperation agreements with five property firms on Wednesday, including China Resources Land, China Overseas Land, Vanke Group, Longfor Group and Gemdale Group, in order to develop long-term cooperation on businesses such as loans, mortgages, M&A, and bond underwriting, according to the state-owned lender. Bank of China also announced to provide a 100-billion-yuan credit line to developer Vanke today.

  农行与五家房企签署银企战略合作协议：11月23日下午，中国农业银行与中海发展、华润置地、万科集团、龙湖集团、金地集团五家房企举行银企战略合作协议签约仪式，银企各方将利用各自行业优势，整合资源，围绕商品房、保障房、城市更新等重点领域，在房地产开发贷款、个人住房按揭贷款、并购贷款、债券承销与投资等业务方面，进一步加深合作，建立长期稳定的合作关系。同时，中国银行与万科集团签署《战略合作协议》，进一步深化银企合作。根据协议，中国银行将为万科集团提供不超过1000亿元人民币或等值外币的意向性授信额度。

• China’s tech-savvy STAR Market in Shanghai hosted 486 companies that raised a combined 730 billion yuan through initial public offerings in its first three years. The fundraising accounted for more than 40 percent of IPOs in China’s domestic A-share market during the period, said Cai Jianchun, general manager of the Shanghai Stock Exchange, on Tuesday. Companies traded on the STAR Market have a combined market value of more than 6 trillion yuan.

  科创板IPO融资额超7300亿：11月22日，上交所总经理蔡建春出席2022年金融街论坛时表示，设立科创板并试点注册制，是资本市场落实国家创新驱动发展战略的重要举措。截至目前，科创板已上市486家科创企业，IPO融资额超7300亿元，占同期境内A股市场首发融资总额的40%以上，总市值超6万亿元。

• Berkshire Hathaway, the investment company owned by Warren Buffett, has sold 3.23 million Hong Kong-listed shares of BYD for HK$630.33 million, a filing to the Hong Kong Stock Exchange showed on Tuesday. The sale, which has been the fifth cut this year, lowered Berkshire Hathaway's holdings in BYD's H-shares to 15.99 percent on Nov. 17 from 16.28 percent.  

  巴菲特今年五次减持比亚迪：11月23日消息，据港交所披露的信息显示，巴菲特旗下公司伯克希尔11月17日卖出了322.5万股比亚迪H股，持股比例从16.28%降至15.99%。本次减持均价为195.4212港元/股，套现约6.3亿港元。据悉，这已是港交所今年第五次披露巴菲特减持比亚迪H股，自从8月份开始巴菲特已累计减持比亚迪H股5000万股，套现约102.68亿港元。

Wrapping up with a quick look at the stock market

股市收盘情况

• Chinese stocks traded in a tight range and ended mixed on Wednesday. The benchmark Shanghai Composite rose 0.26 percent, partly helped by the latest round of property financing support policies, while the Shenzhen Component slid 0.27 percent. Hong Kong stocks rebounded after a 5-day losing streak, with the Hang Seng index rising 0.57 percent, and the TECH index gained 1.13 percent.

  A股窄幅震荡港股走高：周三A股震荡三大指数涨跌不一，截至收盘，沪指涨0.26%，深成指跌0.27%，两市交易额8304.8亿元。港股结束五连跌，恒生指数涨0.57%，恒生科技指数涨1.13%。

Biz Word of the Day

财经词汇划重点

• A credit line, also known as a "line of credit" (LOC), is a type of standing loan that allows individuals, businesses, or other organizations to borrow cash when they need it, repay what they have borrowed, and continue borrowing without applying for a new loan.

  授信额度是指商业银行为客户核定的短期授信业务的存量管理指标，一般可分为单笔贷款授信额度、借款企业额度和集团借款企业额度。只要授信余额不超过对应的业务品种指标，无论累计发放金额和发放次数为多少，商业银行业务部门均可快速向客户提供短期授信，即企业可便捷地循环使用银行的短期授信资金。

Executive Editor: Sonia YU

Editor: LI Yanxia

Host: Stephanie LI

Writer: Stephanie LI 

Sound Editor: Stephanie LI

Graphic Designer: ZHENG Wenjing, LIAO Yuanni

Produced by 21st Century Business Herald Dept. of Overseas News.

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编委:  于晓娜

策划、编辑：李艳霞 

播音：李莹亮

撰稿：李莹亮

音频制作：李莹亮

设计：郑文静、廖苑妮

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