Hi everyone. I’m Stephanie LI.
Coming up on today’s program.
- China’s manufacturing PMI unexpectedly falls into contraction for October;
- China will lift its health declaration policy from tomorrow.
Here’s what you need to know about China in the past 24 hours?
China's manufacturing activity unexpectedly fell back in contraction in October, after jumping into expansion territory for the first time in six months last month.
The official manufacturing purchasing managers’ index fell to 49.5 in October from 50.2 in September, the National Bureau of Statistics said Tuesday.?
The decline in the manufacturing PMI in October is related to factors such as the high base in September and early release of consumer demand prior to the golden holidays, according to NBS Statistician Zhao Qinghe.
In breakdown of sub-indexes, the production index came in at 50.9, down 1.8 percentage points compared with September. The index in industries such as petroleum, coal and other fuel processing, chemical fiber and rubber plastic product remained below the 50 mark, signifying the slowdown in activity.
The new order index stood at 49.5 in October, a decrease of 1.0 percentage points from the previous month. The proportion of enterprises in industries such as textiles, chemical raw materials and chemical products, ferrous metal smelting and rolling processing that reflect insufficient market demand exceeded 60 percent.
The NBS also revealed the PMI for non-manufacturing sector in October which stood at 50.6.?
Driven by the long holiday effect, the business activity indexes of railway transportation, air transportation, accommodation, catering and public facilities management related to residents' travel and consumption are all in the high-prosperity range above 55.
受“十一”节假日影响，中国10月制造业PMI时隔一个月再次回落至收缩区间，非制造业PMI仍处于扩张区间，但扩张速度较上月放缓。
10月31日，国家统计局公布数据显示，中国10月官方制造业PMI从9月的50.2下降至49.5，再次回落至收缩区间；非制造业PMI 50.6，较前值 51.7小幅回落，但仍处于扩张区间；综合PMI为50.7，比上月下降1.3个百分点，表明企业生产经营活动总体扩张，但扩张速度放缓。
国家统计局服务业调查中心高级统计师赵庆河在新闻稿中提到，10月制造业PMI景气水平有所回落和环比基数抬高、“十一”节日休假和节前部分需求提前释放等因素的有关。
他指出，受9月份较高基数和10月份工作日减少等因素影响，本月生产指数为50.9%，比上月下降1.8个百分点；从需求看，新订单指数为49.5%，比上月下降1.0个百分点。另外，受近期部分大宗商品价格下降和市场需求回落等因素影响，主要原材料购进价格指数和出厂价格指数分别为52.6%和47.7%，比上月下降6.8和5.8个百分点。
非制造业PMI方面，10月中国非制造业商务活动指数录得50.6%，比上月回落1.1个百分点。分行业看，建筑业商务活动指数为53.5%，比上月下降2.7个百分点，服务业商务活动指数为50.1%，比上月下降0.8个百分点。
服务业中，在“十一”节日效应带动下，与居民旅游出行和消费相关的铁路运输、航空运输、住宿、餐饮、生态保护及公共设施管理等行业商务活动指数均位于55.0%以上较高景气区间，业务总量较快增长；同时，资本市场服务、房地产等行业商务活动指数低位运行。
- China's Customs authority announced today that the country will drop health declaration requirement for cross-border travelers next month. Starting November 1, 2023, travelers entering and exiting China will no longer be required to fill in the Health Declaration Form. Nevertheless, individuals exhibiting symptoms or with confirmed infectious diseases must promptly inform customs about their health condition, the General Administration of Customs (GAC)?said.11月1日起出入境人员免填健康申明卡：海关总署10月31日消息，海关总署决定自2023年11月1日零时起，出入境人员免于填报《中华人民共和国出/入境健康申明卡》，但有发热、咳嗽、呼吸困难、呕吐、腹泻、皮疹、不明原因皮下出血等传染病症状，或已经诊断患有传染性疾病的出入境人员须主动向海关进行健康申报，并配合海关做好体温检测、流行病学调查、医学排查、采样检测等卫生检疫工作。
- The Shenzhou-16 mission crew returned to Earth on Tuesday morning, concluding a historic, five-month mission that involved the first Chinese civilian astronaut. The Shenzhou-16 spacecraft's reentry capsule, carrying the three astronauts — mission commander Major General Jing Haipeng, Colonel Zhu Yangzhu and Professor Gui Haichao — touched down at 8:11 am at the Dongfeng Landing Site in Gobi Desert in Inner Mongolia after flying nearly 12 hours on the return journey. The crew were all in good physical condition.神舟十六返回舱成功着陆：北京时间10月31日8时11分，神舟十六号载人飞船返回舱在东风着陆场成功着陆。现场医监医保人员确认航天员景海鹏、朱杨柱、桂海潮身体健康状态良好，神舟十六号载人飞行任务取得圆满成功。至此，航天员景海鹏圆满完成了第四次飞天旅程，累计在轨执行任务时间超过200天，是目前为止执行飞行任务次数最多的中国航天员。我国首位航天飞行工程师朱杨柱和首位载荷专家桂海潮也圆满完成首飞之旅。
Moving on to regional highlights
- The first Belt and Road Conference on Science and Technology Exchange will take place in Southwest China's Chongqing municipality from Nov 6 to 7, the State Council Information Office said Monday. The conference will focus on inter-governmental cooperation in science and technology, people-to-people exchanges in science and technology, industrial innovation and development, paradigm change in scientific research, future medicine, open science, and big data. Over 300 foreign participants from more than 70 countries and international organizations have been invited to attend the conference.首届“一带一路”科技交流大会11月重庆举行：10月30日下午，国新办新闻发布会上宣布，首届“一带一路”科技交流大会定于11月6日到7日在重庆举行。大会以“共建创新之路，同促合作发展”为主题，围绕政府间科技合作、科技人文交流、产业创新发展、科研范式变革、未来医学、开放科学及大数据等议题，设置开幕式暨全体大会、“一带一路”科技创新部长会议、主题活动、圆桌会议及成果展示5大板块，10场主要活动。大会已邀请到70多个国家、地区和国际组织的300余名重要外宾出席，其中诺贝尔奖获得者、国外院士、专家学者、国外知名高校校长近40名。同时，国内院士、高校校长、科研机构、重点企业代表等也将参会交流。
- Housing authorities in Beijing announced today that residents of the Chinese capital city without housing provident fund loans record in the city will be regarded as first-home buyers and applied to lower interest rate from Nov. 1, regardless of whether they had taken out a mortgage from commercial banks previously. Other major Chinese cities, especially Guangzhou and Shenzhen in Guangdong Province where housing markets are still sluggish despite housing policies eased since August, are expected to follow suit.北京公积金明起执行“认房不认商贷”：10月31日，北京住房公积金管理中心发布《关于优化住房公积金个人住房贷款中住房套数认定标准的通知》，明确自11月1日起，家庭名下在京无住房、在全国范围内未使用过公积金贷款的，认定为首套住房公积金贷款，也就是说，北京住房公积金经调整后，正式执行“认房不认商贷”。市场预计接下来更多城市将跟进优化公积金贷款相关政策，广州、深圳跟进的预期也较强。
Greater Bay Area, Greater future
- The 4 billion yuan superfast charging battery plant of Greater Bay Technology, in which Chinese carmaker GAC Group owns a stake, has kicked off production. The 189,000-square-meter plant began production of fast and superfast charging batteries and battery packs in Guangzhou yesterday. The facility, which began construction in May last year, also includes a research and development center, a trial and test center, and the company’s headquarters.巨湾技研超快充动力电池厂南沙投产：10月30日，广州巨湾技研有限公司超快充动力电池工厂在南沙总部基地正式建成投产。此次投产的超快充动力电池工厂于2022年5月启动建设，历时14个月建成，占地面积约18.9万平方米，计划总投资约40亿元。该工厂是全球首家面向超快充乃至极快充的动力电池规模化生产制造的专业工厂。除电芯和PACK生产主体工厂外，项目还配套有较大规模的研发与设计中心、试制与试验中心等，全面建成后总产能为8GWh/年。
Next on industry and company news
- China’s first self-developed commercial reconfigurable fifth-generation chip is on show in an online store on Alibaba’s e-marketplace Taobao, marking a huge step in ensuring the autonomy of the country’s 5G network. However, it is not yet available for sale. The Pofeng 8676 chip is on display on the Guozi Xiaoxin e-store that is operated by an agency under the State-owned Assets Supervision and Administration Commission. Other prototypes, such as the world’s largest shaft boring machine developed by China Railway Construction, are also showcased in the shop.“中国首款商用可重构5G频射收发芯片”上架淘宝?：30日报道，“中国首款商用可重构 5G 频射收发芯片”在淘宝上架，仅供展示不可购买，堪称“双十一最硬核国货”。据报道，“破风 8676”芯片是由中国移动研究院自主研发，产品介绍信息显示，“破风 8676”可重构 5G 射频收发芯片支持 1.7GHZ~6GHz 频段范围，能够适配全球主流 4/5G 频段、WiFi 及国内车联网频段。该淘宝店铺“国资小新”负责上架这款芯片，由国资委下属机构运营。此外，该店铺还上架了“太行 110”重型燃气轮机、“直-20”直升机等产品，均仅供展示。
- Shares of Hengrui Pharmaceuticals rose after the Chinese drugmaker said it has agreed to grant an exclusive license of its DNA damage response PARP1 inhibitor HRS-1167 to US pharma giant Merck. Hengrui will receive a down payment of EUR160 million, technology transfer fees and royalties of up to EUR90 million, and estimated research and development and sales milestone payments of up to EUR1.4 billion, it said late yesterday. Merck will also pay sales commissions at a double-digit percentage, it added.恒瑞自研新药与默克达成多项海外授权：10月30日，江苏恒瑞医药股份有限公司宣布，与总部位于德国达姆施塔特的默克公司就其自主研发的PARP1 抑制剂HRS-1167达成独家许可协议。该协议还包括恒瑞自主研发的Claudin-18.2抗体药物偶联物（ADC）SHR-A1904的独家选择权。根据协议条款，恒瑞将获得1.6亿欧元的首付款、高至9000万欧元的技术转移费和行权费，以及研发里程碑付款、销售里程碑付款。以上潜在的付款总额可能高达14亿欧元。除此之外，默克还将向恒瑞支付高至两位数百分比的销售提成。
- Power equipment maker Eaglerise Electric & Electronic China said it will invest as much as USD86 million in its Los Angeles-based unit to build a new energy transformers factory in Mexico to get closer to its North American clients. The digital factory, to be located in Saltillo, Coahuila state, will have a high automation level and mainly make new energy products, Eaglerise announced late yesterday. It has a scheduled construction period of two years, it added.伊戈尔拟投建墨西哥新能源产品基地：“光伏黑马”伊戈尔10月30日公告，基于公司业务发展和海外生产基地布局的需要，公司拟用自有资金或自筹资金向公司的全资子Eaglerise E&E(USA),Inc（“洛杉矶伊戈尔”）新增投资总额不超过8600万美元，用于在墨西哥科阿韦拉州萨尔蒂约市投资新建生产基地。据介绍，墨西哥生产基地规划的产品主要为新能源产品，建设期拟定为2年。
Earnings reports express
- Nearly all listed firms in China have published their third-quarter financial performance reports by today, which indicate a broad improvement from the second quarter as leading firms continued to play an anchoring role and the services sector saw quick recovery. Among the some 5,280 listed firms that have unveiled their earnings results, 4,238 made profits in the first three quarters. These companies raked in 53.27 trillion yuan in total, an increase of 2.22 percent year-on-year, and the total net profit reached 4.38 trillion yuan, down 2.2 percent from a year ago, yet remained the second highest in history. During the same period, net profit in 33 non-financial firms increased by more than 10 folds from last year, while revenue in 85 companies surpassed the 100-billion yuan threshold.A股三季报收官营收创新高：三季报披露今日正式收官，A股上市公司前三季度营收创历史新高。龙头企业业绩延续高增长，“压舱石”作用显著。旅游、餐饮、电影等行业景气度明显复苏，相关上市公司业绩得到提振。截至10月31日凌晨，A股市场5,296家上市公司中已有5,279家披露完2023年前三季度财务数据。Wind数据统计显示，报告期内5,279家上市公司营收总和为53.27万亿元，同比增长2.22%。在利润表现上，5,279家上市公司前三季度归属于母公司股东的净利润总和为4.38万亿元，同比下降2.20%，其中有4,238家上市公司前三季度实现盈利。与历史对比，2023年A股三季报营收创历史新高，扣非净利润和归母净利润均为近10年内次高，仅低于去年三季报水平。据统计，今年前三季度，营业收入超千亿元的上市公司有85家；33家非金融上市公司的归母净利润同比增长幅度超1000%。
- China's six state-owned banks’ cumulative net profit grew in the first nine-months, with decent loan growth partly offsetting declining net interest margin and soft fee income. Total net profit of the big six lenders reached 1.05 trillion yuan in the first three quarters. Industrial and Commercial Bank, China Construction Bank, Bank of China, Postal Savings Bank, and Bank of Communications saw 0.8 percent, 3.2 percent, 3.5 percent, 2.5 percent and 2.4 percent growth in net profit, respectively, year on year. Agricultural Bank of China reported higher profit growth at 5.2 percent. Net interest rate margins of the banks continued to narrow, with AgBank falling the most with 34 bps. Ratios of non-performing loans (NPL) held mostly steady, with all lenders posting slight decrease at the end of the third quarter from the end of 2022.六大行前三季日赚超38.1亿元：截至10月30日，六家国有大行前三季度业绩情况已全部披露完毕。前三季度，六大行实现归属于股东的净利润总计10515.87亿元，合计日赚超过38.1亿元。其中，工商银行实现净利润2699.29亿元，同比增长0.81%；建设银行实现净利润2554.40亿元，同比增长3.15%；农业银行实现净利润2077.89亿元，同比增长5.22%；中国银行实现净利润1865.03亿元，同比增长3.55%；邮储银行实现净利润757.66亿元，同比增加18.31亿元，增长2.48%；交通银行实现净利润696.80亿元，同比增长2.42%。同时，六大行的净息差仍然承压收窄，前三季度，工商银行、农业银行、中国银行、建设银行、交通银行、邮储银行净息差分别为1.67%、1.62%、1.64%、1.75%、1.30%、2.05%，分别同比下降31个基点、34个基点、13个基点、30个基点、20个基点、18个基点。资产质量方面，各家大行不良贷款余额较上年末略有增加，但不良贷款率较上年末均有所下降，资产质量整体保持平稳。
- PetroChina's third-quarter net profits grew 21 percent year-on-year, a record high, thanks to increased output and improving domestic fuel demand, the oil giant said on Monday. Net profit for the country's biggest oil company during the third quarter rose to 46.38 billion yuan, following a record profit in the first half as the company increased output. Crude oil output during the first nine months rose 4.3 percent year-on-year to 706 million barrels, while natural gas output grew 6.1 percent to 3,656.6 billion cubic feet, it said.中石油三季度增利超2成：10月30日晚，中国石油发布业绩报告，在油气市场需求复苏下，中国石油前三季度创历史同期最好业绩。前三季度中国石油实现营业收入22821.35亿元，同比下降7.06%，净利润1316.51亿元，同比增长9.8%。其中，第三季度营收8023亿元，同比下降4.58%，净利润463.8亿元，同比增长21.08%。前三季度，中国石油油气当量产量13.15亿桶，同比增长5.1%，其中原油产量7.06亿桶，同比增长4.3%；生产可销售天然气3.66万亿立方英尺，同比增长6.1%。?
Switching gears to financial news
- More leading Chinese asset managers have revealed plans to buy their own products to boost market confidence. E Fund Management, China’s biggest money manager, said Monday it will buy units worths 200 million yuan in its CSI 300 ETF on the open markets. Similarly, China AMC Fund Management announced today that it will purchase 200 million yuan of its mutual fund products in the near future, while China Merchants Fund Management will spend 100 million yuan to invest in its own products.公募巨头加入新一波自购潮：10月31日，华夏基金官网发布公告称，基于对中国资本市场长期健康稳定发展的信心，以及与广大投资者共担风险、共享收益的原则，华夏基金管理有限公司将于近期运用固有资金2亿元投资旗下权益类公募基金。30日，招商基金管理有限公司发布公告称，将于近日运用固有资金合计1亿元投资旗下股票型、混合型公募基金。万亿公募巨头易方达基金管理有限公司也宣布将于近日运用固有资金2亿元投资易方达沪深300ETF。
- China’s finance ministry said it will adjust the way it assesses the return on equity for state-owned commercial insurance firms, in the latest effort to guide more capital into the stock market. According to a recent notice, the ministry has adjusted the return on assets or ROA, a performance measure for the operating efficiency of state-owned commercial insurers, switching from evaluation just of the current year to a combination of a three-year cycle and the return on net assets of the current year. Yearly ROAs of the past three years and the current year's ROA will account for 50 percent each of the final ROA index.国有商业险司净资产收益率实施长周期考核：财政部30日宣布，引导保险资金长期稳健投资，调整国有商业保险公司考核指标，防止“只看当年”的短期行为，更好发挥中长期资金的市场稳定器和经济发展助推器作用。今后，考核国有商业保险公司的多项指标中，净资产收益率由原先的当年度指标，调整为3年周期指标加上当年度指标。其中，3年周期指标和当年度指标的权重各占50%。
Wrapping up with a quick look at the stock market
- Chinese stocks slid on Tuesday with the benchmark Shanghai Composite down 0.1 percent and the Shenzhen Component falling 0.7 percent. Hong Kong stocks closed sharply lower as the Hang Seng index shed 1.7 percent and the TECH index lost 2.5 percent.A股震荡港股收跌：周二A股大盘全天探底回升，三大指数小幅下跌。截至收盘，沪指跌0.09%，深成指跌0.65%，创业板指跌0.48%。沪深两市今日成交额9183亿，较上个交易日缩量1198亿。北向资金全天净卖出47.53亿元。港股低开低走，恒指收跌1.69%，恒生科技指数收跌2.47%%。
- The term return on assets (ROA) refers to a?financial ratio?that indicates how profitable a company is in relation to its total?assets. Corporate management, analysts, and investors can use ROA to determine how efficiently a company uses its assets to generate a profit.资产收益率，也叫资产回报率（ROA），它是?来衡量每单位资产创造多少净利润的指标,是业界应?最为?泛的衡量银?盈利能?的指标之?，该指标越?，表明企业资产利?效果越好，说明企业在增加收?和节约资?使?等??取得了良好的效果，否则相反。?
