CX Daily: China’s Never-Ending Bond Bull Run Fuels Speculation Regulators May Intervene
TOP STORIES
Bonds?/
Over the past year, China’s bond market has witnessed a surge in trading activities, driven primarily by an influx of funds into long-term government bonds.
The central bank has repeatedly issued warnings, and some large banks have come under investigation for selling long-term bonds and making illegal transactions, leading to speculation that regulators might intervene in the bond investments of financial institutions. ?
Typhoon?/
Super Typhoon Yagi made landfall in Hainan and Guangdong provinces last Friday, causing widespread damage, affecting more than 1.2 million people and leading to insurance claims expected to reach hundreds of million yuan.
The storm left four people dead and 95 injured in Hainan province, while devastation was widespread.
Preliminary reports show economic losses in Hainan province surpassing those of Typhoon Rammasun in 2014. In Wenchang alone, the cost was put at 32.7 billion yuan ($4.6 billion), nearly equaling the city’s annual GDP. Combined with Haikou, the economic loss of both cities amounts to 60 billion yuan, one-sixth of Hainan’s GDP in the first half of the year. ?
FINANCE & ECONOMY
Investment bank?/
Shares in China Renaissance Holdings Ltd., the boutique investment bank whose billionaire founder and former Chairman Bao Fan disappeared last year, closed down 13.9% in Hong Kong on Tuesday after plunging 66% the previous day when they resumed trading after a 17-month halt.
The suspension was lifted after the company finally published its delayed annual earnings reports for 2022 and 2023, and its results for the first half of 2024 on Thursday evening.? ?
Personnel?/
China has promoted the director of the Ministry of Finance’s Accounting Regulatory Department to assistant finance minister.
领英推荐
Shu Huihao, in his mid-50s, now oversees several departments, including the accounting department, the Department of Treaty and Law, and the Department of Social Security, the ministry’s website shows. ?
Quick hits?/
Finance Movers and Shakers?/
BUSINESS & TECH
Hospitals?/
China is once again relaxing its policy on foreign-funded medical institutions, with several government departments announcing a pilot program to allow the establishment of wholly foreign-owned hospitals in certain regions, after several back-and-forth policy loosening and tightening attempts over past decades.
According to the new policy released Saturday by the Ministry of Commerce, National Health Commission (NHC) and the National Medical Products Administration, wholly foreign-owned hospitals will be allowed in eight cities including Beijing and Shanghai as well as the island province of Hainan. Previously, foreign investors were required to partner with Chinese entities holding at least 30% equity, according to legal experts. ?
Delivery?/
The sudden death of a takeout deliveryman in the eastern Chinese city of Hangzhou has thrown into stark relief the strenuous nature of this gig industry, where drivers are working ever-longer hours to chase shrinking fees as competition grows amid China’s bleak job market.
A middle-aged deliveryman was found unconscious on his electric scooter outside a local residential complex early Friday morning, Jimu News reported, quoting an eyewitness. He had been lying on the scooter for several hours before fellow delivery riders realized something was wrong, the witness said. ?
Long Read?/