CBN丨China reaffirms opening-up, stresses cooperation and recovery at CDF 2023

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 holds the high-profile CDF offline, highlighting economic recovery and cooperation;

• Industrial profits fell 22.9% in first 2 months due to multiple external factors.

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

中国经济要闻

The China Development Forum (CDF) 2023 started in Beijing on Saturday, drawing together delegates from multinationals, international organizations and renowned scholars to focus on key economic issues.

The CDF 2023, themed "Economic Recovery: Opportunities and Cooperation" is an annual event hosted by the Development Research Center of the State Council. It is the first major conference to be held in the country after the conclusion of the annual two sessions and also marks the first time this event has been held offline after a three-year hiatus.

Chinese Vice Premier Ding Xuexiang stressed that China will advance opening-up and share market opportunities with the world in a keynote speech on Sunday, emphasizing the importance of establishing a new development pattern, explaining that China aims to foster a more open "dual circulation" economic model involving both domestic and foreign markets rather than a closed domestic loop.

China's economy is seeing a strong rebound which "matters for the country itself and matters for the world," said Kristalina Georgieva, managing director of the International Monetary Fund (IMF) on Sunday during a panel discussion at the forum. She said that China is set to account for around one third of global growth in 2023 - giving a welcome lift to the world economy.

More than 100 representatives of overseas multinationals, leaders of international organizations and well-known scholars are attending the CDF, with a strong presence of US firms despite a rising tech rivalry between the world's two largest economies.

Prominent US business leaders such as Apple CEO Tim Cook, billionaire investor Ray Dalio, Cristiano Amon, CEO of US chip giant Qualcomm, Albert Bourla, CEO of Pfizer and Jon Moeller, CEO of consumer goods giant Procter & Gamble, were all in attendance.

Cook spoke of the way Apple's relationship with China has changed from focusing on supply to "more and more interactions with Chinese customers" later. "Apple and China grew together, a symbolic kind of relationship both enjoyed," he said.

Noting at a subforum that the digital economy is quickly transforming the world, Amon emphasized that "no single company can do it alone”. "Qualcomm has a long history in China that spans nearly three decades. We are proud of the deep relationships we have built over the past 30 years… and the new partnerships we are building today," he said.

Despite rising calls from US officials to decouple from China, Huang Qifan, former mayor of Chongqing, emphasized that such an undertaking could never succeed.

"China has a uniquely massive single market, unified in terms of law, tax, business rules and other factors key to economic development," Huang said. This scale advantage can reduce manufacturing costs by 30 to 40 percent," he added.

Instead of worrying about economic and geopolitical uncertainties, Huang said that China should develop future industries, like automated new energy vehicles and humanoid robots for housekeeping services, and turn them into world-class and durable products, to be globally competitive.

中国发展高层论坛2023年年会3月25日至27日在北京召开，本届论坛由国务院发展研究中心主办，主题是“经济复苏：机遇与合作”。

年会上，重磅中外政要、知名专家学者、世界500强和行业龙头企业负责人、国际机构掌门人等海内外嘉宾齐聚北京，共话中国经济发展前景。与会嘉宾表示，中国经济正处于强劲复苏阶段，对2023年中国经济前景非常乐观。

国务院副总理丁薛祥表示，对外开放是中国的基本国策，是当代中国的鲜明标识。中国不断扩大对外开放，不仅发展了自己，也造福了世界。我们构建新发展格局，决不是封闭的国内循环，而是更加开放的国内国际双循环。我们将着力推动国内国际双循环相互促进，积极扩大高质量产品和服务进口，同各国各方共享市场机遇。持续扩大市场准入，全面优化营商环境，落实好外资企业国民待遇，更大力度吸引和利用外资。更加主动对接高标准国际经贸规则，稳步扩大规则、规制、管理、标准等制度型开放，加快打造对外开放新高地，建设更高水平开放型经济新体制。拓展和优化区域开放空间布局，鼓励各地立足比较优势扩大开放，促进东中西互动协同开放，助力推动区域协调发展。扎实推进高质量共建“一带一路”，努力实现高标准、可持续、惠民生目标，为全球发展繁荣注入新动力。

政府工作报告将今年中国经济预期增长目标定为5%左右。中央财经委员会办公室分管日常工作的副主任韩文秀说，从目前发展势头看，实现这一目标是有把握的。

“随着中国疫情防控进入新阶段，经济社会恢复常态化运行，经济发展按下了’快进键’，呈现加快恢复特征。”韩文秀说，中国经济回升正如当前春暖花开、生机盎然，全年将呈现增长加快、物价稳定、就业充分、国际收支基本平衡的良好态势。

“中国经济的强劲反弹意味着其将在2023年贡献全球经济增长的约三分之一，这将为世界经济带来可喜的拉动作用。”国际货币基金组织总裁格奥尔基耶娃说，除了直接促进全球经济增长外，中国GDP增速每提高1个百分点，就会使其他亚洲经济体的平均GDP增速提高0.3个百分点，这种提振令人欣喜。

在重庆市原市长黄奇帆看来，中国超大规模单一市场带来的“规模经济”成本的摊薄效应、超大规模市场的“引力场”效应和抵御外部风险能力的“大海效应”，是应对各种“脱钩断链”挑战的重要基础。

“从产地销、销地产这两个角度看，一些人鼓吹’脱钩断链’是不会成功的。”黄奇帆说，要进一步扩大开放、加快补链扩链强链，培育并形成一批既能组织上中下游产业链水平分工、又能实现垂直整合的制造业龙头企业和中国自己的生态主导型“链主”企业，谋划和布局一批符合未来产业变革方向的整机产品，依托大市场潜在优势，把握产业链布局主动权。

今年年会是自2020年新冠疫情后中国发展高层论坛首次恢复线下举办，吸引了众多国际政商大咖奔赴中国。在论坛各分会场，场场爆满、一座难求；在论坛举办地钓鱼台国宾馆，随处可以感受到新老朋友见面重逢的喜悦和各方对共享中国机遇的期待。

• Profits of Chinese major industrial firms stood at 887.2 billion yuan, which fell 22.9 percent year-on-year, in the first two months of 2023, data from the National Bureau of Statistics (NBS) showed on Monday. Revenue was also down 1.3 percent year-on-year. Despite industrial production seeing a rebound, market demand hadn't fully recovered, the NBS said in a statement, adding that the decline in revenue was greater than the drop in costs, weighing on gross corporate profits. Meanwhile, PPI dropped 1.1 percent year-on-year in the period due to the high base of the same period last year, putting pressure on firms' profits. As the industrial production continues to recover, electricity demand has increased, and driving the profit of the electricity industry up 53.1 percent, continuing the trend of rapid growth. In the next stage, as the order of production and life returns to normal, the profits of industrial enterprises will gradually recover, the NBS added.

  1-2月规上工业企业利润下降22.9%：3月27日，国家统计局发布最新消息，1-2月，全国规模以上工业企业实现利润总额8872.1亿元，同比下降22.9%；营业收入19.30万亿元，同比下降1.3%。在41个工业大类行业中，10个行业利润总额同比增长，1个行业减亏，28个行业下降，2个行业由盈转亏。电力行业利润继续快速增长，采矿业保持较高盈利水平，消费品制造业利润降幅收窄，新动能行业利润较快增长。国家统计局工业司统计师孙晓表示，1-2月多因素影响工业企业利润下降，原材料和装备制造业利润降幅较大：从收入看，尽管工业生产有所回升，但市场需求尚未完全恢复；从成本看，营收降幅大于成本降幅，导致企业毛利下降；从价格看，PPI受同期基数较高影响，对企业盈利形成较大压力。下阶段，随着生产生活秩序恢复正常，市场需求逐步恢复，产销衔接水平提高，基数效应影响减弱，工业企业利润将逐步回升。

Moving on to regional highlights

区域观察

• Guangdong province and Saudi Arabia's Saudi Aramco signed a memorandum of cooperation on Sunday in Beijing, proposing a cooperative framework for exploring investment opportunities in multiple areas. Both sides will further advance ties in energy cooperation, research and innovation, industrial projects, financial cooperation and talent exchanges, according to a statement released by the Guangdong provincial government.

  广东省政府与沙特阿美签署合作备忘录：3月26日，广东省人民政府与沙特国家石油公司（沙特阿美）合作备忘录签署仪式在北京举行。备忘录提出了在多个领域探索投资机会的合作框架，包括能源合作、研究与创新、产业项目、金融合作、人才交流等方面。 

• Saudi Aramco has confirmed its investment in a major petrochemical project in Liaoning province, as announced by Amin Nasser, the President and CEO of the company on Sunday. The project, valued at over 83.7 billion yuan, will be a joint effort between Huajin Chemical Industries, Saudi Aramco, and Panjin Xincheng, and is located in Panjin city, Liaoning province.

  沙特阿美将在辽宁建百亿美元级炼化项目：3月26日下午，辽宁省政府与中国北方工业集团、沙特阿美石油公司在北京举行项目会谈，并共同出席精细化工及原料工程项目股东协议签字仪式。世界最大的石油生产公司沙特阿美将在辽宁省盘锦市设立合资公司华锦阿美石化有限公司，并开工建设大型炼油化工联合装置。华锦阿美石化有限公司是沙特阿美、北方工业集团与盘锦鑫诚实业集团共同出资设立的合资公司，总投资837亿元人民币，三方持股比例分别为30%、51%和19%。合资公司包括一座日加工能力为30万桶的炼油厂和一座年产165万吨乙烯和200万吨对二甲苯的化工厂。

• Shanghai Hongqiao International Airport has resumed outbound flights after a three-year suspension because of the pandemic. China Eastern Airlines yesterday operated the first outbound flight from Hongqiao International Airport to Hong Kong. Eleven airlines, including Air China, China Eastern, Japan Airlines, and Korean Air, will run 314 flights per week from Hongqiao International Airport to international cities, the two special administrative regions, and Taiwan during this year’s International Air Transport Association summer schedule, 22 more than in the same period in 2019.

  上海虹桥机场恢复国际港澳台航班：3月26日起至10月28日，全国民航执行2023年夏秋航季航班计划。3月26日，上海虹桥国际机场暂停三年的国际及港澳台地区进出港航班业务“重启”。上海虹桥机场飞行区副总经理唐浥尘介绍，新航季上海虹桥机场计划每周执行国际、港澳台航班314架次，相较于2019年同期增加22架次，分别由11家航空公司承运，包括国航、东航、日本航空、全日空航空、大韩航空、韩亚航空、国泰航空、香港航空、澳门航空、中华航空、长荣航空等，进驻上海虹桥机场1号航站楼运营。

Greater Bay Area, Greater future

新使命，大未来

• Micro Connect, a fintech startup led by former Hong Kong Stock Exchange chief Charles Li, on Saturday started trial operation of a Macao-based, blockchain-enabled financial assets exchange which helps China’s micro and small businesses to raise funds from global investors. Micro Connect (Macao) Financial Assets Exchange Co. Ltd. deals with trading of Daily Revenue Contract Certificates (DRCCs), a new asset class that entitles holders to receive daily revenue shares from the businesses they invest in, according to Micro Connect co-founder Zhang Gaobo.

  滴灌通澳门交易所试营业：3月25日，前香港交易所总裁李小加创办的滴灌通澳门交易所如期开始试营业，交易的产品称为Daily Revenue Obligation（简称DRO）。滴灌通联合创办人张高波称，DRO是交易所发行的一种凭证，凭证背后是每日收入分成合约（Daily Revenue Contract）。持有一份DRO，意味着拥有一份投资者与小微企业签署的合约，合约约定的是双方在一定时间内的投资和每日收入分成的关系，也就是投资人用现在的一笔投资换取小微门店未来约定时间内一定比例的收入。

Earnings reports express

财报速递

• Chinese food delivery giant Meituan posted a bigger-than-expected 21.4 percent rise in quarterly revenue on Friday as it fended off competition from powerful rivals such as Alibaba-backed Ele.me. Meituan said its total revenue rose to 60.13 billion yuan, due to strong demand for takeaway in the quarter ended December and net loss for the period narrowed to 1.08 billion yuan, from a loss of 5.34 billion yuan a year earlier. In Q4, for the entire local commerce category, Meituan’s operating profit went up by 41 percent year-over-year to 7.2 billion yuan, up from 13.8 percent in the same period of 2021. However, advertising income fell 4.8 percent to 7.7 billion yuan in the fourth quarter, while it marketing cost reached 10.77 billion yuan. Overall, in 2022, revenues increased by 22.8 percent to 220 billion yuan, while the adjusted net profit were 2.8 billion yuan, turning from loss into profit on a year-over-year basis. And its operating profit also rose 56.8 percent to 29.5 billion yuan.

  美团年报“喜忧参半”：24日，美团周末交出一份喜忧参半的年报：2022年全年，美团收入为2200亿元，同比增长22.8%；经营亏损为58.2亿元，同比收窄74.8%，经调整利润为28亿元，2021年同期亏损155.7亿元。2022年，美团核心本地商业分部的经营收入同比增长17.6%至1608亿元，经营利润由2021年的188亿元增长56.8%至2022年的295亿元。即使去年受到疫情影响较大，美团与外卖业务相关的即时配送订单量仍然增长了14%达到177亿元。此外，新业务（美团优选、快驴、网约车、共享单车、充电宝、餐厅管理系统等）的经营亏损也大幅收窄，由2021年的359亿元收窄至2022年的284亿元。在激烈市场竞争下，2022年第四季度，美团的广告营销收入（主要来自到店、酒旅）表现并不乐观，收入仅为77.4亿元，同比下降4.8%。而美团的营销费用高达107.7亿元，明显高于市场预期的89亿元。

• China Petrochemical Corp, Asia's largest refiner by volume and also known as Sinopec, said on Sunday that its revenue in 2022 reached 3.32 trillion yuan, a 21.1 percent year-on-year increase. Profit attributable to shareholders was 66.15 billion yuan. Domestic oil and gas production hit a record high last year, with domestic crude oil production totaling 35.32 million metric tons. Natural gas production reached 35.37 billion cubic meters, up by 4.1 percent, it said. Refining segment processed 242 million tons of crude oil while total sales volume of refined oil products for the year was 207 million tons. Annual ethylene output rose to 13.44 million tons, it said.  

  中石化去年净利663亿元：3月26日晚，中国石化发布2022年年度报告显示，2022年，中国石化实现营业收入3.32万亿元，同比增长21.06%；实现归属于母公司股东的净利润663.02亿元，同比下降6.89%。2022年，中国石化油气勘探开发业务盈利创近十年最好水平，境内油气储量替代率165%，全年油气当量产量6878.96万吨，同比增长1.9%，境内原油产量3532.26万吨，天然气产量353.65亿立方米，同比增长4.1%，境内油气当量产量创历史新高。炼化业务方面，2022年公司加工原油2.42亿吨，生产成品油1.40亿吨，其中柴油产量同比增长5.4%，累计建成9个氢燃料电池供氢中心；化工方面，2022年公司乙烯产量1344万吨、化工产品经营总量为8165万吨，实现了全产全销。

Switching gears to financial news

金融市场消息

• China's non-financial outbound direct investment (ODI) surged 35.7 percent year on year to 136.04 billion yuan in the first two months of the year, according to the Ministry of Commerce on Monday. In the first two months of 2023, ODI channeled into leasing and business services rose 22.3 percent from a year ago to USD4.72 billion, while that into wholesale and retail came in at USD4.09 billion, logging a yearly increase of 17.2 percent. Sectors such as manufacturing and construction also registered growth in outbound investment. During the same period, the non-financial ODI in countries along the Belt and Road jumped 27.8 percent year on year to USD4.04 billion, accounting for 20.2 percent of the total ODI. 

  1-2月我国对外非金融类直接投资超1300亿：商务部27日发布的数据显示，今年1-2月，我国对外投资快速增长，对外非金融类直接投资1360.4亿元人民币，同比增长35.7%。其中，流向租赁和商务服务业47.2亿美元，同比增长22.3%；流向批发和零售业40.9亿美元，同比增长17.2%；流向制造业、建筑业等领域的投资也呈增长态势。我国企业对“一带一路”沿线国家非金融类直接投资40.4亿美元，同比增长27.8%。

• China expanded a pilot program for publicly traded real estate investment trusts (REITs) for the second time to include more types of commercial properties in a push to increase infrastructure investment. The REIT pilot program, launched in 2015 and expanded in 2021, will be broadened again to include consumer-related infrastructure projects, such as department stores, shopping malls and farmers’ markets, according to a notice issued Friday by the China Securities Regulatory Commission.

  公募REITs试点再扩容：中国不动产投资信托基金（REITs）迎来试点以来的第二次资产类型扩容。中国证监会和国家发展改革委3月24日发出通知，将增强消费能力、改善消费条件、创新消费场景的消费基础设施纳入REITs的试点范围，并对不同类型的REITs作出差异化的收益率要求。通知自印发之日起生效。通知称，优先支持百货商场、购物中心、农贸市场等城乡商业网点项目，保障基本民生的社区商业项目发行基础设施REITs。 

Wrapping up with a quick look at the stock market

股市收盘情况

• Chinese stocks fell on Monday, led by Chinese state-owned enterprises and tech shares, as the slump in China’s industrial profit dented sentiment. The benchmark Shanghai Composite closed down 0.4 percent, while the Shenzhen Component edged up 0.1 percent. The combined turnover of the two indices stood at 1.13 trillion yuan, exceeding 1 trillion yuan for the third trading day. Hong Kong’s Hang Seng index dropped 1.8 percent and the TECH index shed 2.8 percent.

  A股分化港股低迷：周一A股三大指数走势分化。沪指盘中弱势震荡，一度跌超1%；创业板指低开高走，涨超1%。截至收盘，上证指数跌0.44%，深证成指涨0.12%，创业板指涨1.17%，报收2398.02点。两市成交额连续第3个交易日突破万亿元，达到11400亿，北向资金全天净卖出6.94亿元。港股再度低迷，恒指收跌1.75%，恒生科技指数收跌2.82%险守4100点。

Biz Word of the Day

财经词汇划重点

• A real estate investment trust (REIT) is a company that owns, operates, or finances income-generating real estate. Modeled after mutual funds, REITs pool the capital of numerous investors. This makes it possible for individual investors to earn dividends from real estate investments—without having to buy, manage, or finance any properties themselves. REITs own many types of commercial real estate, including office and apartment buildings, warehouses, hospitals, shopping centers, hotels and commercial forests. Some REITs engage in financing real estate.

  不动产投资信托基金（REIT），也称“房地产投资信托基金” ，它是通过发行证券的方式募集投资者的资金，并由专门管理机构进行不动产的投资与管理，并将资产的基础收益和资产升值收益按照协议比例分配给投资者的一种契约型或公司型的基金。从定义来说，REITs是基于资产经营的收益和资产升值的收益，通俗来讲是将资产收益的享有权通过信托基金的方式转让给投资者，因此最核心的部分就是资产。REITs涵盖的资产对象包括购物中心、写字楼、酒店、长租公寓（以上均为上市房企的主要持有资产构成要素），以及交通运输、工业物业、环境和公共设施等基础资产。

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.

Presented by SFC

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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