CBN丨China, US commerce authorities to establish new working group

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 and US agree to set up new communication channels to address trade issues;

• Hong Kong opened first licensed virtual-asset exchange for retail investors.

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

中国经济要闻

Chinese Commerce Minister Wang Wentao and US Commerce Secretary Gina Raimondo held “rational, candid and constructive” talks on Monday, the second day of the US commerce chief’s four-day high-stake trip to China, and the two sides announced to set up new communication channels to address various issues.  

Wang and his US counterpart agreed to form a working group, which will comprise deputy ministerial and bureau-level government officials from both countries alongside business representatives, to seek solutions to specific commercial issues, according to Chinese commerce ministry. 

The working group will hold deputy ministerial level meetings twice a year. Wang and Raimondo have agreed to maintain regular communication and to meet at least once annually.

Both sides have initiated an export control information exchange mechanism, serving as a means to interpret their respective export control systems and enhance communication. They will exchange information related to export control in accordance with their respective laws, the statement showed.

In the late-night statement, Chinese commerce minister emphasized his serious concerns regarding various issues, including the US Section 301 tariff measures on China, semiconductor policies, two-way investment restrictions, discriminatory subsidies and sanctions on Chinese companies during the meeting on Monday.

In addition to stressing that broadening the concept of national security is detrimental to normal economic and trade interactions, Wang highlighted that implementing unilateral and protectionist measures goes against market rules and the principles of fair competition, ultimately harming the security and stability of global industrial and supply chains.

Despite multiple assurances from the US that they don't intend to decouple from China, Wang expressed the hope that concrete actions would align with these statements.

8月28日，商务部部长王文涛在京与来访的美国商务部长雷蒙多深入交谈近4个半小时，双方围绕落实中美元首巴厘岛会晤重要共识，就中美经贸关系和共同关心的经贸问题进行了理性、坦诚、建设性的沟通。

王文涛表示，经贸关系是中美关系的压舱石。两国的贸易对各自经济和世界经济都很重要。中方愿与美方共同努力，秉持相互尊重、和平共处、合作共赢的原则，为两国工商界合作创造良好政策环境，促进双边贸易和投资。

王文涛重点就美国对华301关税、半导体政策、双向投资限制、歧视性补贴、制裁中国企业等表达严正关切。王文涛表示，泛化国家安全不利于正常经贸往来，实施单边、保护主义措施不符合市场规则和公平竞争原则，只会损害全球产业链供应链安全稳定。美方多次表示不寻求与中方脱钩，希望美方将表态落在实处。

王文涛部长和雷蒙多部长认识到中美在经贸领域开展开放和富有成效对话的重要性，宣布在中美两国商务部之间建立新的沟通渠道。

双方成立了一个工作组，由中美副部长级和司局级的政府官员组成，并有企业代表参加，以寻求解决具体商业问题的办法。工作组将每年举行两次副部级会议。两位部长同意经常性沟通，每年至少会见一次。此外，双方还启动了出口管制信息交流机制，作为解释各自出口管制制度和改善沟通的机制。双方将按照各自法律，就出口管制信息进行交流。

双方讨论并同意两国专家将就强化行政许可过程中的商业秘密和保密商务信息保护问题进行技术磋商。

• Chinese lawmakers on Monday submitted a draft law aimed at making preschools more accessible and affordable. To secure the sound development of the sector, the draft law stresses the principal role of the government in popularizing preschool education and building a preschool public-service system that covers urban and rural areas, as well as to guide non-governmental entities to provide accessible preschool education resources. On child care and education, the draft specifies that kindergartens should give top priority to the protection of children's safety. Children applying for preschool should not be subject to any form of examination or testing except for necessary physical examinations, it said, while teaching of any primary school materials during kindergarten is banned.

• 我国拟制定学前教育法：学前教育法草案8月28日提请十四届全国人大常委会第五次会议初次审议。草案明确，发展学前教育坚持政府主导，以政府举办为主，大力发展普惠性学前教育资源，引导和规范社会力量参与；幼儿园应当根据学前儿童身心发展规律和年龄特点，科学实施保育和教育活动，不得教授小学阶段的课程内容、采用小学化的教育方式；幼儿园应当把保护学前儿童安全放在首位，落实安全责任制相关规定；国家为家庭经济困难的适龄儿童等接受普惠性学前教育提供资助。

Moving on to regional highlights

区域观察

• The UK is planning to send its largest business group in four years to attend the 2023 China International Fair for Trade in Services (CIFTIS) as the Guest Country of Hornor, the UK Embassy in China said Tuesday. The business group will be led by a Minister of State from UK's Department for Business and Trade. Over 60 enterprises from the UK are estimated to have business talks with Chinese partners during the trade fair, providing a platform for dialogue, while seeking new cooperation opportunities, according to the embassy. The UK will present its brands covering sectors including innovation, sports, education, technology, energy, medical health and financial services during the fair.

• 英国派四年来最大代表团参加服贸会：8月28日，英国驻华贸易使节杜涛在北京表示，英国作为2023年中国国际服务贸易交易会主宾国，将举办70余场活动，其中包括大量交互式体验。据介绍，今年服贸会英国代表团由英国商业贸易部一位国务大臣率领，是四年来访华规模最大的英国商业代表团。服贸会期间，英方将展示创意、体育、教育、科技、能源、医疗保健和金融服务等领域的英国品牌。60多家英国企业和组织将与中国合作伙伴进行政策对话，达成商业成果。

Greater Bay Area, Greater future

新使命，大未来

• Hong Kong’s first licensed virtual-asset exchange targeting retail investors officially launched on Monday, as the city vigorously promotes the development of virtual assets and harnesses the advantages of combining financial technology with traditional finance. The Hashkey Exchange opened up to retail investors in Hong Kong to buy bitcoin and ether with US dollar deposits, the company said on Monday. The launch comes nearly a month after HashKey and OSL, the only two local exchanges previously licensed by the city’s Securities Futures Commission (SFC) to offer virtual asset trading services to professional investors, said that their existing licenses had been upgraded to allow them to take retail investors.

• 香港持牌虚拟资产交易所正式开通散户服务：作为香港两家持牌虚拟资产交易所之一，HashKey Exchange于2023年8月28日正式开放服务予零售投资者。按照监管要求，该交易所不向中国内地居民提供服务。本月初，香港两家虚拟资产交易所Hashkey Exchange和BC科技集团旗下的OSL Digital Securities先后宣布，已获香港证监会批准提升现有牌照，即日起可正式向零售投资人提供比特币和以太坊等主流加密货币的交易服务。

• The Shenzhen Municipal People’s Government will issue a new batch of up to 5 billion yuan in green and social-responsibility bonds in Hong Kong, marking the third year in a row that the Shenzhen government has issued offshore renminbi-denominated bonds. The bond issuance consists of three tranches, with two-year, three-year and five-year tenors, and they are the first offshore social-responsibility bonds issued by the mainland government. Proceeds of this bond issuance will be mainly directed at various municipal projects in Shenzhen, including education, infrastructure, healthcare, and old-community renovation projects.

• 深圳三度赴港发地方债：8月28日，深圳第三次赴香港发行离岸人民币地方政府债券，发行规模50亿元。据悉，该地方政府债券将在香港联合交易所挂牌上市，发行期限为2/3/5年期。3年期为绿色债券，募集资金将投向轨道交通、水治理等项目，5年期为社会责任债券，募集资金将投向医疗卫生、教育、老旧小区改造等项目。具体来看，2年期债券发行规模24亿元，定价利率2.42%，3年期发行规模15亿元，定价利率为2.65%，5年期发行规模11亿元，定价利率2.83%。

• Since the beginning of this year, Shenzhen Baoan International Airport has opened and enhanced 10 international cargo routes, including seven dedicated cross-border e-commerce air routes, realizing delivery to major destinations worldwide within a maximum of three days. The latest move is the nation’s first air cross-border express center, which was jointly established on Sunday by the airport and YunExpress, one of the world’s leading logistics providers. Meanwhile, they also increased the frequency of freight routes from Shenzhen to Paris, France, to six departures per week, boosting the weekly outbound cargo capacity to over 600 tons.

• 深圳打造全国首个航空跨境快件中心：今年以来，深圳宝安国际机场已新开、加密10条国际货运航线，其中包括深圳至巴黎、列日、伦敦、圣保罗、达沃、特拉维夫、利雅得等7条跨境电商空运专线，可基本实现深圳始发货物最快3天内送达全球其他主要城市的目标。8月27日，深圳宝安国际机场联合跨境电商物流头部企业云途物流携手打造云途全国首个航空跨境快件中心在深圳宝安国际机场落成启用，同时双方联合将“深圳-巴黎”货运专线加密至每周6班，每周出港运力提升至600吨以上，主要承运深圳各类特色跨境电商货物。

Next on industry and company news

产业及公司新闻

• Huawei quietly launched its latest flagship – Huawei Mate 60 Pro today, which is the world’s first mass smartphone that supports satellite calls. The smartphone bundles high-end features and a circular camera module on the rear side. The new flagship is also embedded with Huawei’s homegrown AI model Pangu. The operating system is HarmonyOS 4.0, making the Mate 60 Pro the first phone with this UI out of the box. According to Huawei’s website, the Huawei Mate 60 Pro 12GB+512GB version is currently available at  6,999 yuan.  

• 华为Mate 60 Pro提前上线：8月29日午间，华为最新旗舰机型Mate 60 Pro在华为官方电商平台低调上线，售价6999元起，比市场传闻发布时间提前了半个月。在官网发布的一封《致用户信》中，华为表示，Mate系列手机自2013年发布以来，累计发货达到了1亿台。此次产品中，华为Mate 60 Pro成为全球首款支持卫星通话的大众智能手机，即使在没有地面网络信号的情况下，也可以拨打、接听卫星电话。AI隔空操控、智感支付、注视不熄屏等智慧功能，在Mate 60 Pro上全面回归。同时，接入盘古人工智能大模型，为消费者提供更智慧的交互体验。  

• China National Offshore Oil Corp signed a strategic cooperation framework agreement with Brazilian oil and gas company Petrobras on Monday in Beijing, eyeing to further deepen cooperation in oil and gas exploration and development, as well as in the refining and chemical industry, it said. The two sides will also further step up cooperation in engineering construction as well as oilfield services and crude oil trade, said the company. CNOOC currently has a 7.34 percent interest in the integrated development of the Buzios field in Brazil, the world's largest deepwater pre-salt-producing oilfield.

• 中海油与巴西深化油气勘探开发合作：8月28日，中国海洋石油集团有限公司与巴西国家石油公司正式签署战略合作框架协议，双方将在油气勘探开发、炼油化工、工程建设和油田服务、绿色低碳、原油贸易等领域加强深化合作。目前，中国海油在巴西拥有全球最大深水油田布兹奥斯（Búzios）油田一体化开发项目7.34%权益。

Earnings reports express

财报速递

• China's electric vehicle maker giant BYD said its first-half net profit surged 205 percent yearly to 10.95 billion yuan, mainly boosted by the doubled EV sales. The revenue jumped 72.7 percent year-on-year to 260 billion yuan for the first six months of the year. The automobile-related businesses contributed 208.8 billion yuan, up by 91 percent from one year ago, while the income from handset components, assembly service and other products grew 24.4 percent to 51.1 billion yuan, affected by the global weak demand. Despite the price cuts on EVs in the first half, BYD's gross profit margin rose to 18.33 percent from 13.51 percent one year ago. 

• 比亚迪上半年大赚近110亿：8月28日晚间，比亚迪在港交所披露2023年半年报。数据显示，今年上半年，比亚迪实现总营收2601.2亿元，同比增长73%；报告期内，比亚迪的归母净利润为109.5亿元，同比增长205%。受汽车业务增长影响，今年上半年，比亚迪汽车板块的收入为2088.2亿元，同比增长91%。除了汽车板块之外，包括手机部件、组装等消费电子板块也取得突破。数据显示，今年上半年，比亚迪电子板块收入为510.9亿元，同比增长24%。上半年比亚迪毛利率已经提升至18.33%，而在去年上半年，这一指标为13.51%。比亚迪方面预计，下半年，中国新能源汽车产业将延续良好的增长势头，渗透率有望继续突破。

• Sinopharm's interim net profit rose by 11 percent year-on-year to 4 billion yuan while revenue rose 15.1 percent to nearly 301 billion yuan. Its pharmaceutical distribution contributed the most in revenue at 226 billion yuan, up by 14.7 percent due to the increase in the distribution scale of retail pharmacies. The group's medical device revenue rose 17.2 percent to 62.9 billion yuan, while retail pharmacy revenue jumped by 15.9 percent to 17.7 billion yuan as a result of market expansion.

• 国药控股中期净利增长11%：国药控股8月28日公布2023年中期业绩，收入约人民币3009.5亿元，同比增长15.10%；母公司持有者应占溢利41.04亿元，同比增长11.12%。其中，医药分销收入为2254.33亿元，同比增加14.71%，其增长主要是由于零售药店分销规模增大。医疗器械收入为约629.54亿元，同比增加17.27%；医药零售收入为约176.965亿元，同比增加15.86%。

• SenseTime slightly narrowed its net loss by 1.1 percent to 3.12 billion yuan in the first six months of this year from a year earlier. The Chinese artificial intelligence company's revenue grew by 1.3 percent to 1.43 billion yuan in the period, of which, sales from the smart business segment jumped by 50.2 percent to 853.6 million yuan. Sales from generative AI-related business soared 670 percent from a year before, the firm noted. The group's gross profit margin in the six months, meanwhile, sank by 20.7 percentage points to 45.3 percent, mainly due to higher hardware and AI data center-related costs. SenseTime has reportedly been cutting up to 15 percent of the headcount in the smart city business since last month, which the firm said was a strategic adjustment.

• 商汤科技上半年亏损缩窄至31亿元：8月28日，商汤科技公布截至2023年6月30日的上半年业绩报告，财报显示，商汤科技上半年收入为14.33亿元，同比增长1.3%；净亏损额为31.43亿，较去年同期收窄2%。毛利率为45.3%，同比下降30.6%。其中，智慧商业板块表现突出，实现收入8.54亿元，同比增长50.2%，生成式AI相关收入录得了670.4%的同比增长。此外，有消息称，商汤科技正在进行裁员，其中智慧城市与商业事业群（SCG）员工裁员约10%至15%。对于网传裁员消息，商汤科技回复称公司根据市场环境变化和自身发展状况进行相应的战略调整。

• The interim net profits of state-owned China Overseas Land and Investment and Poly Property, fell 20 percent and 50 percent respectively yearly as residential property sales in China's first-tier cities continued to shrink. China Overseas said its first-half net profit fell by 19.4 percent to 13.5 billion yuan. Revenue in the first six months declined 14 percent to 89.2 billion yuan. Meanwhile, Poly Property said its net interim profit slumped by 49.6 percent compared to the same period last year to 639 million yuan. Revenue fell 16 percent to 15.6 billion yuan.

• 中海、保利中期净利润暴跌：2023年上半年国内房地产市场依旧低迷，继续影响房企的业绩表现。8月28日下午，中国海外发展公告披露，2023年上半年录得收入891.6亿元，同比下降14.1%；股东应占溢利134.9亿元，核心股东应占溢利138.2亿元，同比分别下降19.43%、20.35%。同日，保利置业发布2023年上半年业绩公告。上半年，该公司收入156.39亿元，同比减少16.4%，股东应佔溢利为6.39亿元，同比减少49.6%。

• As of Monday, 285 Chinese A-share listed biopharmaceutical companies had released interim reports, which showed that over 60 percent of them had achieved net profit growth. The interim statements showed that 186 of the 285 firms achieved year-on-year growth in net profit. In terms of revenue, 12 companies reported revenue of more than 10 billion yuan and another 102 had revenue exceeding 1 billion yuan. Biopharmaceutical companies are also generous in their R&D investment. Last year, 56 representative biopharmaceutical companies listed on the A-share market had 27,000 R&D personnel, accounting for 22.6 percent of all employees. Their average annual salary stood at 363,000 yuan.

• 超六成生物医药公司上半年利润实现增长：截至8月28日，A股生物医药行业上市公司中，已有285家公司披露了2023年半年报。营收方面，有12家公司营收破百亿元，另有102家公司营收超10亿元。利润方面，共有186家公司实现净利润同比增长。据悉，近7成生物医药公司上半年研发支出同比增长。在A股上市公司的56家生物医药企业中，2022年研发人员共计2.7万人，占员工总数的22.6%，平均薪酬为36.3万元/年。

Switching gears to financial news

金融市场消息

• China's local governments issued a net 196.3 billion yuan in special bonds in July, the finance ministry said on Tuesday, less than half the amount issued in June. Newly-added bonds issuance last month amounted to 235.3 billion yuan, according to data from the ministry. The governments issued a net 2.497 trillion yuan in special bonds in the first seven months of the year.

• 7月新发地方债2353亿元：8月29日，财政部发布2023年7月地方政府发行和债务余额情况。2023年7月，全国发行新增债券2353亿元，其中一般债券390亿元、专项债券1963亿元。1－7月，全国发行新增债券29706亿元，其中一般债券4735亿元、专项债券24971亿元。

• China extends individual income tax break for annual one-off bonuses through the end of 2027 in order to further reduce the burden on taxpayers, according to a statement from the Ministry of Finance on Monday. In a move that sends an encouraging signal to foreign businesses in China, the country will also continue to waive taxes on foreign workers’ benefits, including subsidies for housing, language training and children’s education, the ministry said. Other preferential tax policies include waiving the income tax under 400  yuan that are short-paid for those who earn less than 120,000 yuan a year. 

• 个人所得税优惠政策获延续：财政部、国家税务总局8月28日公布延续一批个人所得税优惠政策，相关政策执行至2027年底。对符合规定的居民个人全年一次性奖金，可不并入当年综合所得，单独计算纳税；对年度综合所得收入不超过12万元且需要汇算清缴补税的，或者年度汇算清缴补税金额不超过400元的居民个人，可免予办理个人所得税综合所得汇算清缴；对符合条件的外籍个人，允许其选择享受个人所得税专项附加扣除，或选择享受住房补贴、子女教育费等津补贴免税优惠政策；对一个纳税年度内在船航行时间累计满183天的远洋船员，其取得的工资薪金收入减按50%计入应纳税所得额，依法缴纳个人所得税。

Wrapping up with a quick look at the stock market

股市收盘情况

• Chinese stocks closed higher on Tuesday with the benchmark Shanghai Composite adding 1.2 percent, and the Shenzhen Component gained 2 percent. Total turnover in the A-share market hit the 1-trillion yuan mark for a second session. Hong Kong’s Hang Seng index jumped 2 percent and the TECH index rallied 2.6 percent.

• A股港股继续走高：周二A股三大指数小幅低开后震荡走高，午后股指总体维持强势震荡。截至收盘，沪指涨1.20%，深成指涨2.17%，创业板指涨2.82%。沪深两市全天成交额10371亿元，较上个交易日缩量895亿。北向资金全天净卖出6.8亿元。港股恒生指数收涨1.95%，恒生科技指数收涨2.59%。

Biz Word of the Day

财经词汇划重点

• Virtual Asset Exchange is a platform that provides virtual assets trading and customized services for institutions and professional investors. 

• 虚拟资产交易所，是指提供虚拟货币交易和相关衍生品交易的在线平台。它可以充当买家和卖家之间的中介，为用户提供安全、便捷的虚拟资产交易环境。

Executive Editor: Sonia YU

Editor: LI Yanxia

Host: Stephanie LI

Writer: Stephanie LI 

Sound Editor: HUANG Qingyi

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、实习生黄青衣

音频制作：黄青衣

设计：郑文静、廖苑妮

21世纪经济报道海外部 制作

南方财经全媒体集团  出品