CBN丨Pan Gongsheng is named PBOC Party chief

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 

• PBOC deputy governor Pan Gongsheng was appointed as new Party chief, potentially putting him on track to be the next governor;

• NEV sales of China automakers continued strong momentum in June.

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

中国经济要闻

Pan Gongsheng, who has served as one of the People’s Bank of China’s deputy governors for over a decade, was named the new party secretary of the country’s central bank.

Sixty-year-old Pan, who is also the head of the State Administration of Foreign Exchange, is replacing Guo Shuqing, 67, as the new party secretary of the PBOC, the central bank said in an announcement on its website on Saturday. Guo will continue to serve as a PBOC’s deputy governor.

In the same statement, the PBOC also noted that Governor Yi Gang will no longer serve as deputy party secretary.

His appointment came as the market is closely watching China's next step to deal with the country's slowing economic recovery and a softer domestic currency. The central parity rate of the yuan against the US dollar weakened to 7.2258 on Friday. Market analysts believe Pan's professional background and rich banking experience will help boost market confidence in the yuan.

The PBOC is expected to continue to implement stable monetary policy after the appointment of Pan, who during a speech in June attributed the stability of China's financial system to sound monetary policy that has refrained from "significant easing and tightening".

“We have accumulated a lot of experience in coping with exterior factors and expanded policy tools applied in the macroeconomic regulation in the forex market,” Pan said during the 14th Lujiazui Forum on June 8. “We have the confidence, conditions, and capability to maintain the stable operation of the forex market.”

During his tenure as PBOC deputy governor, Pan was assigned multiple important tasks, such as perfecting the Chinese yuan exchange rate’s market-oriented mechanism, promoting the inclusion of the yuan into the International Monetary Fund’s Special Drawing Right basket of currencies, and facilitating the establishment of the interconnected mechanism of the Chinese mainland’s and Hong Kong’s interbank interest rate swap markets.

Before joining the PBOC, Pan worked at Industrial and Commercial Bank of China between 1993 and 2008 and at Agricultural Bank of China as vice president from 2008 to 2012, according to information on the PBOC’s website.

Separately, the PBOC vowed on Friday that it will "firmly fend off the risk of drastic ups and downs in exchange rates", followed by media reports on Sunday that major commercial banks had reduced the interest rates of dollar-denominated deposits, a move experts said will help alleviate the depreciation pressure on the renminbi.

今年60岁的潘功胜成为中国人民银行新一任党委书记。

2023年7月1日下午，中国人民银行召开领导干部会议。中央组织部有关负责同志宣布了中央决定：潘功胜同志任中国人民银行党委书记，免去郭树清同志的中国人民银行党委书记职务、易纲同志的中国人民银行党委副书记职务。

根据公开简历，潘功胜出生于1963年，从2012年进入央行工作至今已有11年之久，此前还曾在工商银行、农业银行任职，兼具金融机构和监管部门工作经验。值得一提的是，潘功胜在学术方面也有所建树，曾担任中国人民大学兼职教授、博士生导师。剑桥大学博士后学者及哈佛大学高级研究员。

2012年6月，潘功胜进入监管部门工作，出任中国人民银行党委委员、副行长；2015年12月，在担任中国人民银行党委委员、副行长的同时，兼任国家外汇管理局党组书记；2016年1月，任中国人民银行党委委员、副行长，国家外汇管理局党组书记、局长。

6月8日，潘功胜在第十四届陆家嘴论坛上发表主题演讲时表示，经过多年的改革发展，近年来我国外汇市场运行逐渐呈现出新的特征：市场运行呈现较强的韧性，市场主体更加成熟，交易行为更加理性，汇率避险工具更多运用，以及人民币跨境使用水平的大幅提升，也大幅压缩了汇率风险敞口。

潘功胜表示，中国货币政策坚持以我为主，坚持跨周期和内外平衡的导向，不跟随美联储“大放大收”，不搞竞争性的零利率或量化宽松政策。

此外，6月30日，中国人民银行货币政策委员会2023年第二季度例会在北京召开。在人民币对美元即期汇率上半年贬值近4.5%的背景下，会议提出，要综合施策、稳定预期，坚决防范汇率大起大落风险。

货币政策方面，最新例会在继续强调“精准有力实施稳健的货币政策，搞好跨周期调节”的同时，提出要“加大逆周期调节力度”。对于国内经济形势，央行最新例会认为经济运行整体回升向好，市场需求稳步恢复，生产供给持续增加，同时新提出“内生动力还不强，需求驱动仍不足”。

Moving on to regional highlights

区域观察

• South China's island province of Hainan has recorded a total offshore duty-free sales of over 130 billion yuan since adjusting relevant policies three years ago, said Haikou Customs Saturday. From July 1, 2020 to Friday, 17.67 million shoppers purchased 130.7 billion yuan of offshore duty-free products on the island, increasing by 92.6 percent and 279 percent, respectively, compared with the previous three years.

  海南离岛免税新政实施三年销售额超1300亿元：7月1日，海口海关数据显示，据统计，自2020年7月1日离岛免税新政实施，截至今年6月30日，海口海关共监管离岛免税购物金额1307亿元、购物旅客1767万人次、销售件数1.75亿件，比2017年7月至2020年6月分别增长279%、92.6%、272%。

• The third China-Africa Economic and Trade Expo successfully concluded in Changsha, Central China's Hunan Province on Sunday, with fruitful achievements and with the largest participation scale and highest number in projects. A total of 120 projects were signed at the expo, with a value of $10.3 billion, according to the organizer. Some 99 cooperation projects were announced, with a value of $8.7 billion, including 74 matchmaking projects with 11 African countries, the highest number ever. The expo attracted 1,700 foreign and over 10,000 domestic participants, making the largest attendance ever.  

  第三届中非洲博览会签约项目累计120个：7月2日，第三届中国—非洲经贸博览会新闻通报会上消息，本届中非经贸博览会各方签约项目累计120个、金额103亿美元，展馆现场累计意向成交额4亿美元。6月29日至7月2日，第三届中非经贸博览会在湖南省长沙市举办。其间，发布99个对接合作项目、金额87亿美元，其中11个非洲国家发布74个对接项目，数量为历届之最。34项合作成果集中发布，涵盖标准规范、研究报告、声明倡议等八大类，首次发布中非贸易指数，再次发布中非经贸关系报告。参会规模为历史之最。实现与中国建交的53个非洲国家参会全覆盖，联合国工发组织、非盟等12个国际组织，30个国内省区市，1700余家中非企业、商协会和金融机构参会，参会规模上万人，其中，外宾达1700人。

• The first phase of the largest domestic single-unit lithium carbonate project, a key raw material of lithium-ion batteries, was put into operation on Sunday in Northwest China's Xinjiang. The project is divided into two phases, with a total investment of 4.6 billion yuan, according to Xinjiang's top economic planner on Sunday. After completion of the second phase, it will reach an annual output of more than 120,000 tons of lithium carbonate, and can achieve sales revenue of more than 30 billion yuan annually, while creating more than 1,500 jobs in the region.

  新疆首个12万吨电池级碳酸锂项目（一期）投产：7月2日，总投资46亿元的巴音郭楞蒙古自治州若羌县新疆志存新能源材料有限公司年产12万吨电池级碳酸锂项目（一期年产6万吨）完工投产。该项目是目前行业单体产量最大的电池级碳酸锂工厂，也是新疆首个投产的电池级碳酸锂项目。12万吨电池级碳酸锂项目分两期建设，一期投资23亿元，预计年产值将达到180亿元，年税收9亿元，带动就业1500余人。二期计划2024年9月建成投产，两期项目全部达产后，年产值预计在300亿元以上。

Greater Bay Area, Greater future

新使命，大未来

• As Hong Kong marks the 26th anniversary of its return to the motherland on Saturday, the GDP of the city has surpassed HK$2.8 trillion, doubling from that of 1997, according to Hong Kong Finance Secretary Paul Chan on Sunday. The average annual GDP growth rate of the HKSAR during the past 26 years stood at 2.8 percent, higher than the average growth rate of 1.9 percent among global developed economies. The per capita GDP of Hong Kong residents reached $49,000, Chan said. 

  香港GDP较1997年增逾一倍：7月3日，香港特区政府财政司司长陈茂波在网志表示，7月1日是香港回归26周年，香港回归祖国超过四分一世纪，经历了不少高低起伏，克服了不少重大挑战。陈茂波表示，香港经济持续发展，本地生产总值已超过28000亿港元，较1997年增逾1倍，年均增长率约2.8%，较其他先进经济体同期的平均1.9%增长率为高；本港的人均生产总值达到49000美元的高水平。

Next on industry and company news

产业及公司新闻

• Fixed-asset investment in China's transport sector surged 12.7 percent year on year to stand at 1.4 trillion yuan in the first five months of 2023, data from the Ministry of Transport showed on Sunday. Specifically, road construction investment rose 13.2 percent year on year to 1.1 trillion yuan. Investment amounting to 73.4 billion yuan was channeled into waterway development, soaring 30.3 percent year on year.

  前5月完成交通固定投资1.4万亿：今年前五个月，我国交通固定资产投资保持较快增长，今年1—5月，我国完成交通固定资产投资1.4万亿元，同比增长12.7%。其中，完成公路投资1.1万亿元，同比增长13.2%；完成水运投资734亿元，同比增长30.3%。

• Chinese automakers fared well in June, with electric car giant BYD selling nearly 253,000 vehicles and Li Auto revving past the 30,000-a-month mark for the first time ever. BYD sold 253,046 new energy vehicles in June, including 10,536 sold overseas, with first-half sales up 96 percent year-on-year to 1.25 million units. GAC’s Aion sold 45,013 NEVs, up 87 percent from last June. Li Auto delivered 32,575 new vehicles in June, reaching a monthly delivery volume of over 30,000 units for the first time and representing a year-on-year growth of 150 percent. And Nio delivered 10,707 units in June, up 74 percent over the previous month but 17 percent lower year-on-year. 

  6月新能源车销量出炉：近日，国内多家造车新势力企业公布上月交付量，多家企业交付量增势明显。其中，广汽埃安再度突破4万辆，理想首次超过3万台。此外，零跑汽车、哪吒汽车、蔚来、极氪4个品牌交付量均超过万辆。比亚迪6月新能源汽车销量253046辆；全年累计销量同比增长95.78%。埃安6月销量45013辆，同比增幅达到86.7%，销量连续4个月破4万，这也使得其在今年1-6月的累计销量达到了209336辆，同比增长109%。此外，理想汽车在6月的交付量再次与其他新势力车企拉开差距。据理想汽车发布的数据，6月共交付32575辆新车，同比增长150.1%。这是理想汽车月度交付量首次突破3万辆，上半年累计交付量达到139117辆，较去年同期提升130.3%。 

• Trip.Com Group said the online Chinese travel agency will invest 1 billion yuan to pay childcare subsidies to staff worldwide, likely benefiting more than 20,000 children of its employees. Starting from July 1, both male and female employees who have worked at the company for three years or more will be eligible to receive an annual cash bonus of 10,000 yuan per year for each newborn until the child reaches the age of five, the company said Friday. 

  携程投入10亿元鼓励员工生育：携程集团日前宣布，携程计划未来投入10亿元生育补贴，用于激励员工生育。全球范围内入职满3年的携程员工，无论性别，每新生育一个孩子，将获得每年1万元的现金补贴，发放至孩子满5周岁后终止。

Switching gears to financial news

金融市场消息

• Debt-ridden property developer China Aoyuan Group has reached an agreement with creditors holding about 33 percent of its outstanding offshore debt on the key commercial terms of a debt restructuring plan, the company announced on Sunday. Under the terms of the restructuring plan, Aoyuan’s unit Add Hero Holdings will issue three series of new debt instruments worth a total of USD1.8 billion, with annual interest rates of 7.5 percent to 8.8 percent. The first series will start amortizing from September 2026, and the last will mature in September 2031. Aoyuan will also issue USD500 million notes with an interest rate of 5.5 percent, expected to mature in September 2031, and USD143 million new zero-coupon mandatory convertible bonds, which will be converted into ordinary shares in September 2028, representing 29.9 percent of the total issued share capital of the company after the restructuring. However, the proposal is yet to be approved by a majority of creditors.

  奥园境外债重组方案出炉：中国奥园于7月2日晚间发布的债务重组相关公告显示，已与境外若干优先票据持有人（占未偿还本金总额的约33.01%）组成的债权人小组，就境外债务全面重组方案的主要条款达成协议。方案中包括部分债转股和永续债，奥园方面表示，将发行新的融资工具对原债券进行置换。根据重组方案，奥园方面将通过全资直接附属公司Add Hero Holdings Limited发行三支共计18亿美元的新债，到期日始自2026年9月至2031年9月，利率7.5%-8.8%。此外，奥园自身也将发行5亿美元新债，将到期日设置在2031年9月，利率为每年5.5%；另拟新发行10亿股普通股。在强制可转换债券方面，奥园还拟发行1.43亿美元无息强制可转换债券，其将于2028年9月强制转换为其普通股份，占转换后已发行股本总额的29.9%；另拟发行的16亿美元永续债中，其现金分配率自2031年9月起每年1%起，而奥园可选择递延支付永续债的所有分配。按照计划，奥园需要获得75%的同意率，目前该公司与这一目标之间仍有相当一段距离。

Wrapping up with a quick look at the stock market

股市收盘情况

• Chinese stocks enjoyed a strong start to the week on Monday, with the benchmark Shanghai Composite gaining 1.3 percent, while the Shenzhen Component rose 0.6 percent. Hong Kong’s Hang Seng index also jumped 2.1 percent, and the TECH index added 3.7 percent.

  A股港股7月开门红：周一7月首个交易日，A股三大指数集体上涨，沪指收涨1.31%报3243点，深证成指收涨0.59%，创业板指收涨0.6%。两市超3100股上涨，全天成交额突破万亿，北上资金净买入26.85亿元。港股指数高开高走，香港恒生指数收涨2.06%；恒生科技指数收涨3.66%。

Biz Word of the Day

财经词汇划重点

• A bond conversion is the process of changing a bond into shares. The number of shares that a bond can be converted into depends on the conversion ratio, while the conversion price determines the cost per share. The most common type of bond to be converted are convertible bonds. These are normal corporate bonds that have a predetermined number of shares that they can be converted into.

  所谓债转股，是指国家组建金融资产管理公司，收购银行的不良资产，把原来银行与企业间的债权、债务关系，转变为金融资产管理公司与企业间的股权、产权关系。债权转为股权后，原来的还本付息就转变为按股分红。

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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