Telephone conversation with German Chancellor Scholz
Xi Jinping once again congratulated Scholz on his appointment as German Chancellor. Xi Jinping stressed that China attaches great importance to China Germany relations. In recent years, China Germany cooperation has always been the “leader” of China EU cooperation, which is the correct choice made by the two countries to comply with the development trend of the times. Next year will mark the 50th anniversary of the establishment of diplomatic relations between China and Germany. Looking back half a century, China Germany relations have shown sufficient vitality, endurance, tenacity and potential; Looking forward to the next 50 years, the two countries should look at the world, take a long-term view, forge ahead and strive to achieve new development in China Germany relations. Scholz expressed his gratitude to Mr. President for his congratulatory letter after I took office as German Chancellor. I have fresh memories of our exchanges and am willing to inherit and promote German Chinese friendship and cooperation. At present, Germany China Trade and investment relations are developing well, with close cooperation in addressing global challenges such as climate change and combating the covid-19 pneumonia epidemic, and close communication on regional issues such as Afghanistan and Iran’s nuclear issue. These constitute the three pillars for the sustainable development of Germany China relations. Germany is willing to work with China in the spirit of mutual respect and trust to promote the further development of Germany China all-round strategic partnership. Germany is willing to take the opportunity of celebrating the 50th anniversary of the establishment of diplomatic relations between Germany and China next year to hold a new round of German Chinese government consultations, strengthen practical cooperation in clean energy, digital economy and service industry, and promote the development of EU China relations with a constructive attitude. It is hoped that the EU China investment agreement will enter into force as soon as possible. Germany is willing to work with China to safeguard multilateralism in international affairs. The leaders of the two sides exchanged New Year greetings and expressed their willingness to maintain regular communication and work together to push China Germany and China EU relations to a new level.
Ning Jizhe: have confidence, conditions and ability to keep the economic operation within a reasonable range
Recently, Ning Jizhe, deputy director of the national development and Reform Commission and director of the National Bureau of statistics, mentioned that China’s economy is facing triple pressure according to the contents of the central economic work conference. From the perspective of demand, residents’ consumption is continuously disturbed by local sporadic epidemic, and the stable growth of investment is restricted by some factors. From the perspective of supply, there are still some blocking points in the industrial chain supply chain, the pressure of rising comprehensive costs of enterprises still exists, and the production and operation of downstream small and medium-sized enterprises are facing difficulties. From the perspective of expectation, there are great variables in the trend of global epidemic, uncertainty in economic operation, and certain fluctuations in market expectation and enterprise confidence.
First, it is expected to stabilize the economy and industry. On the one hand, actively expand effective investment. We will solidly promote the construction of 102 major projects in the 14th five year plan. Give better play to the guiding role of government investment, and encourage and guide private capital to participate in the construction of municipal, transportation, logistics and other short board projects. On the other hand, promote the operation of industrial economy to cheer up. We will make greater efforts to support the development of the real economy, increase accurate support for enterprises, especially manufacturing enterprises, small, medium-sized and micro enterprises and individual industrial and commercial households, and consolidate the foundation of economic development.
Second, to stabilize expectations, we should focus on key points and solve difficult problems. First, focus on ensuring supply and price stability. In view of various supply shocks, special attention should be paid to the connection between the production, supply and marketing of grain, oil, meat, eggs, vegetables and other daily necessities, and the regulation of coal, electricity, oil and gas transportation. Second, focus on expanding China’s demand. Fill the gaps in the infrastructure network and lay out new infrastructure. Promote the consumption of new energy vehicles, carry out green smart appliances to the countryside, and promote the quality and capacity expansion of life service industries such as medical and health care, elderly care and education, culture, tourism and sports. Third, we will strive to promote enterprise benefit and relief, and accelerate the implementation of the new policy of tax reduction and fee reduction.
Third, we should make up for weaknesses and ensure safety. In terms of food security, we implemented the strictest farmland protection system and deeply implemented the action to revitalize the seed industry. In terms of energy security, we will strengthen the supply guarantee of coal, electricity and natural gas, actively promote the construction of large-scale wind power and photovoltaic bases focusing on deserts, Gobi, desert areas and the sea, and continue to play the role of coal and coal power in peak shaving and bottom-up supply guarantee. In terms of industrial chain and supply chain stability, we will concentrate on solving the shortage of chips such as automobiles, strengthen the supervision of China’s bulk commodity market, and speed up the construction of a modern international logistics supply chain system.
Fourth, to stabilize expectations, we should enhance our strengths and increase confidence. Fully grasp the period of important strategic opportunities for development and give full play to comparative advantages. China takes the lead in coordinating epidemic prevention and control and economic and social development in the world. It has a complete industrial system, perfect supporting capacity, rich human resources, convenient software and hardware infrastructure network, rich regulation experience and large policy space. We have the confidence, conditions and ability to maintain economic operation within a reasonable range and promote steady and long-term economic and social development.
Overall, China’s recovery this year is ahead of the world, but downward pressure remains. Starting from the above four aspects will help promote China’s steady economic growth. We will strive to stabilize the overall economic market and make new progress in promoting high-quality development. Through active fiscal policy, capital construction should be properly advanced, and cross cyclical and counter cyclical regulation should be organically combined, which is conducive to ironing out economic fluctuations, avoiding ups and downs, maintaining economic operation within a reasonable range, and improving the effectiveness of macro-control.
The financing balance decreased. On December 20, the balance of A-share financing was 1723.78 billion yuan, a month on month decrease of 2.287 billion yuan; The balance of margin trading was 1837.936 billion yuan, a decrease of 4.010 billion yuan month on month. The balance of financing minus securities lending was 1609.625 billion yuan, a month on month decrease of 563 million yuan.
Net sales of northbound funds. On December 21, the net purchase turnover of land stock connect on that day was -997 million yuan, including 48.461 billion yuan of purchase turnover and 49.458 billion yuan of sales turnover, with a cumulative net purchase turnover of 1619.162 billion yuan. Hong Kong stock connect had a net purchase turnover of HK $3.274 billion on the same day, including a purchase turnover of HK $14.132 billion and a sale turnover of HK $10.857 billion, with a cumulative net purchase turnover of HK $218.273 billion.
Money market interest rates fell. On December 21, Bank Of Shanghai Co.Ltd(601229) inter-bank offered rate Shibor overnight interest rate was 1.8580%, down 13.60bp, Shibor one week was 2.0870%, down 3.40bp. The weighted interest rate of pledged repo of depository institutions was 1.8361% overnight, down 13.95bp and 2.0449% a week, down 5.76bp. The 10-year maturity yield of China national debt was 2.8508%, down 0.25bp.
All three major U.S. stocks closed higher, while European stock markets generally rose. On December 21, the Dow Jones Industrial Average closed at 35492.70 points, up 1.60%; The S & P 500 index closed at 4649.23 points, up 1.78%; The NASDAQ index closed at 15341.09, up 2.40%. European stock markets, French CAC index closed at 6964.99 points, up 1.38%; Germany’s DAX index closed at 15447.44 points, up 1.36%; The FTSE 100 index closed at 7297.41, up 1.38%. In the Asia Pacific market, the Nikkei index closed at 28517.59 points, up 2.08%; The Hang Seng Index closed at 22971.33, up 1.00%.
The dollar index fell. On December 21, the dollar index fell 0.06% to 96.4557. The euro rose 0.09% against the dollar to 1.1287. The dollar rose 0.39% against the yen to 114.0800. The pound rose 0.06% against the dollar to 1.3222. The spot exchange rate of RMB against the US dollar closed at 6.3707, up 0.12%. The spot exchange rate of offshore RMB against the US dollar closed at 6.3763, up 0.11%. The central parity rate of RMB against the US dollar closed at 6.3729, up 0.32%.
Gold fell and crude oil rose. On December 21, Comex gold futures fell 0.11% to close at US $1789.60/oz. WTI crude oil futures rose 2.96% to close at US $71.27/barrel. Brent crude oil futures rose 2.68% to close at US $74.01/barrel. COMEX copper futures rose 1.07% to close at US $4.3495/lb. LME copper three-month futures rose 1.01% to close at US $9555 / ton.
