[Focus]
The two sessions of the National People’s Congress will be held next year. The central bank and other departments jointly issued the plan for Chengdu and Chongqing to jointly build a western financial center: by 2025, the western financial center will be preliminarily completed. Cbcirc: promote pension insurance institutions to focus on the development of commercial pension insurance. Nine departments including the Ministry of ecological environment: carry out pilot Climate Investment and financing, and explore carbon financial services including carbon fund and Carbon Asset pledge loan.
[highlights of China]
·On the afternoon of December 24, the 32nd meeting of the Standing Committee of the 13th National People’s Congress voted and adopted the decision of the Standing Committee of the National People’s Congress on convening the fifth session of the 13th National People’s Congress. According to the decision, the fifth session of the 13th National People’s Congress will be held in Beijing on March 5, 2022. The 64th chairman’s meeting of the 13th National Committee of the Chinese people’s Political Consultative Conference held a few days ago considered and adopted the decision (Draft) on convening the fifth meeting of the 13th National Committee of the Chinese people’s Political Consultative Conference, and recommended that the fifth meeting of the 13th National Committee of the Chinese people’s Political Consultative Conference be held in Beijing on March 4, 2022.
·The central bank, the national development and Reform Commission, the Ministry of Finance and other departments jointly issued the plan for Chengdu and Chongqing to jointly build a western financial center. It is proposed that by 2025, the western financial center will be preliminarily completed, and by 2035, the status of the western financial center will be more consolidated. We should establish a one level cooperation mechanism for one western region and one belt, one road, and the other, we should study and support the foreign investors who are qualified to invest in the regional equity market. Explore the construction of a market-oriented debt to equity asset trading platform. Promote the application of research achievements in financial science and technology fields such as artificial intelligence, big data, cloud computing and blockchain in Chengdu and Chongqing.
·The central bank and the safe issued the notice on issues related to supporting the development of new offshore international trade, which proposed to encourage banks to optimize financial services and provide cross-border capital settlement facilities for honest and law-abiding enterprises to carry out real and compliant new offshore international trade. Banks should formulate business norms according to the characteristics of new offshore international trade, improve internal management, implement customer classification and improve service level.
·The central bank issued the report on China’s rural financial services (2020), which pointed out that in the next step, we should focus on key areas such as the integrated development of green finance and Inclusive Finance, the development of rural digital Inclusive Finance, strengthen the innovation of rural financial products and service modes, and vigorously promote rural revitalization and the development of agricultural and rural modernization.
·The notice on standardizing and promoting the development of old-age insurance institutions issued by the cbcirc proposes to promote old-age insurance institutions to focus on the development of businesses reflecting old-age attributes such as commercial old-age insurance, old-age security management and enterprise (occupational) annuity fund management, and support qualified old-age insurance companies to participate in the pilot of exclusive commercial old-age insurance; Terminate or divest the insurance asset management business irrelevant to pension.
·According to the Ministry of finance, from January to November, the total profit of state-owned enterprises was 4143.49 billion yuan, a year-on-year increase of 40.2% and an average increase of 13.8% in the two years. Among them, central enterprises totaled 2703.21 billion yuan, a year-on-year increase of 36.4%, with an average increase of 13.6% in the two years; Local state-owned enterprises reached 1440.28 billion yuan, a year-on-year increase of 47.9% and an average increase of 14.2% in the two years.
·The notice on carrying out the pilot work of Climate Investment and financing issued by the Ministry of ecological environment and other nine departments points out that the pilot local financial institutions are encouraged to explore and carry out carbon financial services including carbon fund, Carbon Asset pledge loan and carbon insurance in a stable and orderly manner, effectively prevent financial risks and promote the innovative development of carbon financial system. We will resolutely curb the blind development of “two high” projects. Pilot localities must incorporate the relevant requirements for Resolutely Curbing the blind development of “two high” projects into local investment and industrial policy formulation, and link up and implement the action plan for regional and industrial carbon peak, as well as the policy requirements for dual control of energy consumption, clean energy substitution, clean transportation, total coal consumption control, etc.
·The Ministry of industry and information technology and the National Standardization Management Committee organized the preparation and printing of the guide for the construction of industrial Internet comprehensive standardization system (2021 Edition). The construction objectives include more than 40 key technical standards such as “5g + industrial Internet”, information model, industrial big data and security protection, and more than 25 application standards for key industrial fields such as automobile, electronic information, steel, light industry (household appliances), equipment manufacturing, aerospace and petrochemical industry by 2023.
·According to the latest data from the national energy administration, from January to November this year, the medium Shanxi Guoxin Energy Corporation Limited(600617) power generation reached 1035.57 billion kwh, breaking the 1 trillion kwh mark for the first time, with a year-on-year increase of 32.97%, accounting for 13.8% of the national electricity consumption from January to November, with a year-on-year increase of 2.14 percentage points.
·According to the data of China Insurance Industry Association, in 2020, the number of motor vehicles underwritten by traffic compulsory insurance was 301 million, the premium income was 227 billion yuan, and the guarantee amount was 43 trillion yuan. The compensation cost was 138.4 billion yuan, various operating costs were 67.2 billion yuan (including 2.7 billion yuan of rescue fund), underwriting profit was 12.8 billion yuan, and the shared investment income was 8.9 billion yuan.
·The CICC issued a notice on the 24th that from January 1 to December 31, 2022, it will halve the delivery fees of stock index futures and treasury bond futures.
·China’s industrial carbon emission information system was officially launched on the 23rd. At present, China’s industrial carbon emission information system has 68 registered units, 143 registered accounts and more than 200 carbon footprint warehousing products.
·The 2021 China coal import summit held on December 21 proposed to establish a coordination mechanism for imported coal; It is suggested to lock in a certain proportion of international coal resources, take power coal consumption enterprises and some national reserve bases as the main body, and gradually establish a medium and long-term contract system for imported power coal.
[International highlights]
·Japan’s core consumer prices rose 0.5% year-on-year in November, a new high since February 2020. Japan’s overall consumer prices rose 0.6% year-on-year in November.
·Japan approved a record initial budget of 107.6 trillion yen ($940 billion) for fiscal year 2022, an increase of 0.9% over the initial budget for the current fiscal year.
·According to the joint announcement issued by the monetary authority of Singapore and the Ministry of trade and industry of Singapore on the 23rd, in November 2021, Singapore’s overall inflation rate rose to 3.8% from 3.2% in the previous month, exceeding the market’s previous expectation of 3.4%, and reaching the highest level after February 2013.
·The governor of the Bank of Indonesia said that China’s inflation may begin to rise in the third quarter of 2022, but the low interest rate policy will be maintained until there are signs of inflation rising.
– stock
·A shares: the main stock indexes of Shanghai and Shenzhen markets generally opened slightly higher in the morning on the 24th. The index fluctuated downward in the morning and finished sideways in the afternoon. Finally, it closed down significantly. Among them, the gem index fell below the intraday low on December 21, setting a new stage low. By the close of trading, the Shanghai composite index was at 3618.05 points, down 0.69%, with a turnover of about 476.3 billion yuan; Shenzhen composite index reported 14710.33 points, down 1.03%, with a turnover of about 655.5 billion yuan; The gem index reported 3297.11 points, down 2.27%, with a turnover of about 253.5 billion yuan. On the disk, traditional Chinese medicine, diamond cultivation, food processing and manufacturing and other sectors led the increase; Salt lake lithium extraction, rare earth permanent magnet, automobile and other plates led the decline.
·H shares: Hong Kong will usher in the Christmas holiday. Hong Kong stocks will be closed from the afternoon of December 24 to December 27. As of the closing on the 24th, the Hang Seng Index rose 0.13%, or 30.12 points, to 23223.76 points, with a full day turnover of HK $51.721 billion. The SOE index fell 0.03% to 8201.95; The Hang Seng technology index fell 0.34% to 5619.39. In terms of sectors, the top three gainers were nuclear power, gambling stocks and traditional Chinese medicine, up 4.7%, 3.9% and 3.63% respectively. The top three declines were SaaS concept, gold and automobile, down 2.1%, 1.94% and 1.82% respectively.
– Bonds
·China’s bond market: after rising for several consecutive days, the pressure to stop earnings in the bond market increased on the 24th, and the Treasury bond futures closed down slightly, with the main force of 10-year down 0.10%, the main force of 5-year down 0.06% and the main force of 2-year down 0.02%.
– currency
·On the 24th, the central bank launched a 7-day reverse repo of 10 billion yuan and a 14 day reverse repo of 10 billion yuan; In view of the maturity of RMB 10 billion reverse repurchase on that day, the open market realized a net investment of RMB 10 billion.
·This week (December 20-24), the central bank carried out a total of RMB 50 billion 7-day reverse repurchase and RMB 50 billion 14 day reverse repurchase; In view of the maturity of RMB 50 billion reverse repurchase this week, the total net investment in the open market was RMB 50 billion.
·Shibor rose 20.90bp to 1.8400% overnight; Shibor fell 8.00bp to 1.9430% in seven days; Shibor rose 23.50bp to 3.2880% in 14 days.
– foreign exchange
·On December 24, the central parity rate of RMB against the US dollar was 6.3692, down 41 points. At 16:30 Beijing time, the onshore RMB closed at 6.3702 against the US dollar, up 19 points from the previous trading day.
– commodities
·China’s commodity futures market strengthened on Friday (December 24), with most active varieties closing higher, led by chemicals. Among them, styrene, urea and liquefied petroleum gas (LPG) closed up 5.42%, 4.88% and 4.02% respectively, ranking among the top three in the list of increases; In addition, five varieties, including coking coal, iron ore and palm oil, closed up at 3% or more. In terms of falling varieties, glass, soda ash and NR 20 closed down 3.15%, 1.38% and 1.32% respectively, ranking among the top three in the decline list; Shanghai zinc and Shanghai aluminum fell slightly, but the decline did not exceed 0.5%.
[economic data and dynamics (Beijing time)]
·Due to western traditional holidays, the stock markets of the United States, Germany, Italy and Spain were closed, the British stock market was closed at 20:30, the French stock market was closed at 21:05 and the Canadian stock market was closed at 01:50 the next day.
(Xinhua Finance)
