Hi everyone. I’m Stephanie LI.
Coming up on today’s program
China's auto market expects new records following strong November data;
China issues measures to boost integrated development of domestic and foreign trade.
Here’s what you need to know about China in the past 24 hours
China's auto sector exceeded market expectations in November, with double-digit year-on-year growth reported for both the production and sales of vehicles, laying the ground for record-breaking annual figures, the latest data has shown.
The China Association of Automobile Manufacturers said in a report on Monday that vehicle sales rose 27.4 percent year on year and 4.1 percent month on month in November, reaching 2.97 million units.
Meanwhile, vehicle output in the same month hit 3.09 million units, up 29.4 percent year on year and 7 percent compared to the previous month, the data showed.
During the first 11 months of this year, vehicle production and sales hit 27.11 million and 26.94 million units, growing by 10 percent and 10.8 percent year on year, in which new energy vehicles production and sales reached 8.43 million and 8.30 million, surging 34.5 percent and 36.7 percent year on year, respectively.
In November alone, production and sales of NEVs each hit 1.07 million and 1.03 million units, up 39.2 percent and 30 percent year on year, both surpassing the 1 million mark for the first time.
In terms of exports, the country shipped 482,000 vehicles in November, up 46.3 percent year on year, with that of NEVs hitting 97,000 units. Exports totaled 4.41 million units from January-November period, up 58.4 percent, with NEVs exports amounted to 1.09 million, up 83.5 percent.
"China's economy has generally maintained a positive trend, with more consumption highlights in key areas. Market demand for automobiles and related industries has been released rapidly, and business confidence has continued to improve," the association said in the report.
As policies continue to have an impact, and as auto shows and promotional activities in various regions continue, the auto sector is expected to extend its growth momentum in December, and auto production and sales are expected to hit record highs this year, according to the association.
Meanwhile, more than 90 percent of existing NEV models will continue to enjoy the purchase tax exemption policy under the new technical requirements released on Monday by Chinese ministries.
The requirements of existing NEV technical indicators are being appropriately raised, from the endurance mileage to the quality of power battery system. The driving range of pure electric passenger cars should not be less than 200 kilometers and the maximum speed of pure electric passenger cars in 30 minutes should not be less than 100 kilometers per hour, according to a statement published by the Ministry of Industry and Information Technology (MIIT) on Monday.
China's State Council, the cabinet, on Monday revealed a total of 18 measures in five areas to accelerate integrated development of domestic and foreign trade, aiming to remove regulatory and other barriers to make it easy for companies to explore both the domestic and international markets. Specifically, measures will be taken to promote the alignment of domestic and international trade rules and systems, inspection and certification, regulations and standards. Support will be given to export businesses to explore the domestic market and to domestic market-oriented firms to explore the international markets. Measures will also be taken to improve the environment for the integrated development of domestic and foreign trade, including strengthened protection of intellectual property rights and improved logistics networks. In terms of fiscal support, on the premise of complying with WTO rules, existing central and local fiscal funding channels such as special funds for foreign economic and trade development should be fully used to support the integrated development of domestic and foreign trade, according to the circular.
Greater Bay Area, Greater future
China's Ministry of Finance on Tuesday issues yuan-denominated treasury bonds worth a total of 10 billion yuan in the Hong Kong SAR. A total of 3 billion additional 2025 bonds, 3 billion additional 2026 bonds, and 4 billion additional 2028 bonds will be issued this time. A tender of these bonds is held today and for settlement on Dec. 14. The ministry has increased the issuance of the RMB sovereign bonds in the city to 50 billion yuan this year.
Next on industry and company news
Dalian Wanda Group has reached an agreement with the pre-IPO investors in its mall operating unit, averting an immediate repayment for not listing shares in the entity this year. Under the new deal, private equity firm PAG and investors will hold about 60 percent in Zhuhai Wanda Commercial Management Group, according to a statement on Tuesday. Dalian Wanda Commercial Management Group, controlled by billionaire Wang Jianlin, will remain as the single largest shareholder with a 40 percent stake.
Shares of China Literature soared after the e-book platform of Chinese tech giant Tencent Holdings said it plans to buy the assets of its affiliate firm Tencent Animation and Comics for 600 million yuan to enrich its upstream intellectual property reserve and enhance its ability to adapt comics. The assets China Literature plans to acquire from Tencent Animation are the latter’s animation app, animation projects, film and television projects, as well as a 90 percent stake in its animation production unit Mi Chengzi, the e-book platform announced yesterday.
Shares in Kingdee International Software Group surged as much as 10.5 percent today after the Chinese office software developer said the Qatar Investment Authority is paying USD200 million for a stake in the firm, opening up the door for Kingdee to tap the burgeoning Middle Eastern market. Unit Al-Rayyan Holding is buying 4.26 percent equity, or 155 million new shares, in Kingdee at a price of HKD10.10 per share, about 2.7 percent lower than its closing price on Friday, Kingdee said. This is the largest single investment by a Middle East sovereign fund in China's software sector and in a Hong Kong-listed company since 2019.
China Eastern Airlines' first flight between Shanghai and the Egyptian capital of Cairo took place on Monday. This is the first passenger flight from Shanghai to North Africa operated by a Chinese airline, according to the Shanghai-based carrier. The direct flight from Shanghai to Cairo will be available every Monday, Thursday and Saturday. The flight return from Cairo will depart every Monday, Thursday and Saturday (local time) as well.
Shares in Li Ning rebounded as much as 4.9 percent today, following a bloodbath yesterday when the Chinese sportswear company said it was buying an office building in Hong Kong. Li Ning said today that its stock is undervalued and its cash reserves ample enough to repurchase 10 percent of its stock over the next six months. The repurchase will not affect Li Ning’s operations or cash flow, it added.
Share buybacks by Hong Kong-listed companies have hit a record this year with some 186 companies spending HKD111.4 billion repurchasing their own shares, media reported today. This has already surpassed the amount recorded in 2022 at HKD104.9 billion, according to the report. Social-media giant Tencent Holdings, insurer AIA Group and HSBC Holdings have spent the most on buybacks this year, it said.
Switching gears to financial news
China's Shenzhen Stock Exchange and Saudi Tadawul Group, operator of the Saudi Stock Exchange, have inked a Memorandum of Understanding (MOU) for financial cooperation in various areas, including environmental, social, and corporate governance (ESG), fintech and a potential exchange-traded fund (ETF) connect, the bourse announced on Monday.
The People's Bank of China and the National Bank of Serbia have signed an MOU on establishing yuan clearing arrangements in Serbia, according to a notice from the PBOC on Monday. The move will help enterprises and financial institutions of the two countries to use yuan for cross-border transactions and further promote bilateral trade and investment facilitation, it said.
Wrapping up with a quick look at the stock market
Chinese stocks ended mixed on Tuesday with the benchmark Shanghai Composite gaining 0.4 percent, while the Shenzhen Component fell 0.1 percent. Hong Kong’s Hang Seng index rose 1.1 percent and the TECH index added 1.7 percent.
Biz Word of the Day
Share repurchase, also known as share buyback or stock buyback, is the re-acquisition by a company of its own shares. It represents an alternate and more flexible way (relative to dividends) of returning money to shareholders. When used in coordination with increased corporate leverage, buybacks can increase share prices.
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
21世纪经济报道海外部 制作
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(作者：李莹亮 编辑：李艳霞）