National Standing Committee: determine cross cycle adjustment measures to promote the stable development of foreign trade
Premier Li Keqiang chaired an executive meeting of the State Council to determine cross cyclical adjustment measures to promote the stable development of foreign trade. The following points are mainly mentioned:
First, strengthen policy support for import and export. Implement tax reduction and fee reduction measures. Speed up the progress of export tax rebate and reduce the average time of tax rebate to less than 6 working days. Keep the RMB exchange rate basically stable.
Second, further encourage the development of new foreign trade formats such as cross-border e-commerce. Add a comprehensive cross-border e-commerce pilot zone. Increase support for the construction and use of overseas warehouses in a market-oriented manner.
Third, strengthen the supporting services for enterprises, promote and solve the problems of enterprises in developing products of the same line, standard and quality in domestic and foreign trade, and improving the supply chain. The domestic sales of processing trade enterprises are temporarily exempted from tax deferred interest.
Fourth, ease the pressure of international logistics. Encourage foreign trade enterprises and shipping enterprises to sign long-term agreements. Crack down on illegal charges and bid up freight rates according to law and regulations.
Fifth, support local governments to establish and improve systems in combination with actual conditions, actively carry out trade adjustment assistance, and help stabilize the industrial chain and supply chain.
In addition, we should make good arrangements for the implementation of the regional comprehensive economic partnership agreement after it enters into force on January 1, 2022. 1) Encourage enterprises to make good use of the tax reduction of Member States and the accumulation rules of regional origin to expand the export of advantageous products and the import of competitive products. 2) Benchmark international advanced rules, optimize the business environment, actively introduce funds and talents in the region, and strengthen participation in the formulation and docking of international standards. 3) Establish a public service platform and expert team for the implementation of the free trade agreement, and further strengthen the training of small, medium-sized and micro enterprises through government purchase of services. 4) We will continue to promote the entry into force and implementation of more members of the agreement and the institutionalization of the agreement, and promote the negotiation of other multilateral and bilateral free trade agreements.
Overall, the meeting mentioned the need to strengthen policy support for import and export, maintain the basic stability of RMB exchange rate, add a comprehensive cross-border e-commerce pilot zone, and encourage the development of cross-border e-commerce; In addition, measures such as improving the mitigation plan for international logistics pressure, temporarily exempting domestic sales of processing trade enterprises from tax deferment interest, and deploying the work content after the entry into force of the regional comprehensive economic partnership agreement will help promote China’s high-level opening-up of trade and promote the stable development of foreign trade as a whole.
Increase in financing balance. On December 22, the balance of A-share financing was 1723.245 billion yuan, an increase of 1.235 billion yuan month on month; The balance of margin trading was 1839.602 billion yuan, an increase of 2.402 billion yuan month on month. The balance of financing minus securities lending was 1606.888 billion yuan, an increase of 68 million yuan month on month.
Net purchase of northbound funds. On December 23, the net purchase turnover of land stock connect on that day was 2.492 billion yuan, including 48.035 billion yuan of purchase turnover and 45.543 billion yuan of sales turnover, with a cumulative net purchase turnover of 1619.909 billion yuan. Hong Kong stock connect had a net purchase transaction of HK $2.865 billion on the same day, including a purchase transaction of HK $15.507 billion and a sale transaction of HK $12.642 billion, with a cumulative net purchase transaction of HK $2186.184 billion.
Money market interest rates fluctuated. On December 23, Bank Of Shanghai Co.Ltd(601229) inter-bank offered rate Shibor overnight interest rate was 1.6310%, down 5.60bp, Shibor one week was 2.0230%, up 1.10bp. The weighted interest rate of pledged repo of depository institutions was 1.6145% overnight, down 5.06bp and 1.8924% a week, down 6.93bp. The 10-year maturity yield of China national debt was 2.8143%, down 1.60bp.
All three major U.S. stocks closed higher, while European stock markets generally rose. On December 23, the Dow Jones Industrial Average closed at 35950.56 points, up 0.55%; The S & P 500 index closed at 4725.79 points, up 0.62%; The NASDAQ index closed at 15653.37, up 0.85%. European stock markets, French CAC index closed at 7106.15 points, up 0.77%; Germany’s DAX index closed at 15756.31, up 1.04%; The FTSE 100 index closed at 7373.34, up 0.43%. In the Asia Pacific market, the Nikkei index closed at 28798.37 points, up 0.83%; The Hang Seng Index closed at 23193.64 points, up 0.40%.
The dollar index rose. On December 23, the dollar index rose 0.03% to 96.0602. The euro rose 0.01% against the dollar to 1.1328. The dollar rose 0.25% against the yen to 114.4050. Sterling rose 0.44% against the dollar to 1.3412. The spot exchange rate of RMB against the US dollar closed at 6.3702, up 0.03%. The spot exchange rate of offshore RMB against the US dollar closed at 6.3755, up 0.01%. The central parity rate of RMB against the US dollar closed at 6.3651, up 0.08%.
Gold rose and crude oil rose. On December 23, Comex gold futures rose 0.44% to close at US $1810.10/oz. WTI crude oil futures rose 1.49% to close at US $73.41/barrel. Brent crude oil futures rose 1.14% to close at $76.51 a barrel. COMEX copper futures rose 0.31% to close at US $4.40/lb. LME copper three-month futures fell 0.03% to close at US $9639 / ton.
