CBN丨China cuts 1-year lending rate, keeps 5-year unchanged

Hi everyone. I’m Stephanie LI.

大家好，我是主持人李莹亮。

Coming up on today’s program.

重点提要 

• China's benchmark lending rate saw its second decline this year on Monday;

• CSRC unveiled a slew of measures to revive stock market.

Here’s what you need to know about China in the past 24 hours 

中国经济要闻

China cut its one-year benchmark lending rate on Monday as authorities seek to ramp up efforts to stimulate credit demand, but kept the five-year rate unchanged.

The one-year loan prime rate (LPR), which most new and outstanding loans are based on, was lowered by 10 basis points to 3.45 percent from 3.55 percent previously, while the five-year LPR, which impacts mortgages pricing, was left at 4.2 percent.

The reduction in the one-year LPR came after the People's Bank of China (PBOC) lowered its medium-term policy rate last week, which is expected to stimulate financing demand, promote investment and employment activity, and enhance the country’s recovery momentum driven by domestic demand.

The unchanged five-year LPR was partly due to the pressure on net interest margins being felt by Chinese banks, experts noted, as to prevent a wider interest rate gap between new and existing housing loans.

With the LPR being lowered this month, officials have not ruled out leveraging other tools, with a possible cut in reserve requirement ratios (RRR) to increase support for the real economy, analysts said.

Meanwhile, the PBOC, together with the National Financial Regulatory Administration and China Securities Regulatory Commission (CSRC) said on a Sunday statement that more financial support will be lent to the real economy during a Friday conference.

The meeting stressed that major financial institutions should take the initiative to provide more loans, with large state-owned commercial banks continuing to shoulder the responsibility by increasing credit lines. More support should be given to smaller enterprises and the development of key sectors including the green economy, technology and high-end manufacturing.

It said the authorities will adjust credit policy in the real estate sector. Moreover, financing costs for the real economy will be reduced, the meeting said, pointing to the need to give better play to the market-oriented adjustment mechanism for deposit interest rates and strengthen the sustainability of financial support for real economy.

8月LPR超预期非对称下降。

8月21日，人民银行授权全国银行间同业拆借中心公布了新一期贷款市场报价利率（LPR）。其中，1年期LPR为3.45%，上月为3.55%；5年期以上LPR为4.2%，上月为4.2%。1年期LPR较上月下降10个基点。

专家认为，8月LPR下降将有效降低实体经济融资成本，缓解银行面临的利率约束，提振市场信心，进一步加大存款利率调整的可能性。接下来，货币政策或将维持总量宽松政策取向，年内降息、降准皆有空间，新一轮降准落地的可能性较大。 

由于LPR报价在中期借贷便利（MLF）利率加点基础形成，日前央行下调MLF利率15个基点且下调幅度高于6月后，市场普遍期待8月LPR能够较6月有更大力度的下降，尤其是5年期以上LPR能够显著下降。

而8月LPR报价调整超出市场预测，有别于市场普遍期待，本轮LPR迎来非对称下降，其中1年期LPR下降10个基点，5年期以上LPR不变。分析指出，这反映出在支持居民中长期信贷的同时，稳定银行息差水平的政策取向。

目前，多数研究机构预测下半年新一轮降准落地的可能性较大。

今年以来，我国经济运行面临需求不足、一些企业经营困难、重点领域风险隐患较多等挑战。央行充分发挥政策利率引导作用，6月、8月公开市场逆回购操作和中期借贷便利中标利率分别合计下行20个和25个基点，持续释放LPR改革效能，推动企业融资和居民信贷成本稳中有降。

8月18日，中国人民银行、金融监管总局、中国证监会联合召开电视会议。会议释放出关于贷款投放、房地产信贷、利率定价、债务风险化解等方面的政策信息。

会议强调，金融支持实体经济力度要够、节奏要稳、结构要优、价格要可持续。会议提出，主要金融机构要主动担当作为，加大贷款投放力度，国有大行要继续发挥支柱作用。要注重保持好贷款平稳增长的节奏，适当引导平缓信贷波动，增强金融支持实体经济力度的稳定性；要注意挖掘新的信贷增长点，大力支持中小微企业、绿色发展、科技创新、制造业等重点领域，积极推动城中村改造、“平急两用”公共基础设施建设。

Moving on to regional highlights

区域观察

• More than 300 well-known Chinese and foreign enterprises from 50 countries and regions have confirmed their participation in the first China International Supply Chain Expo (CISCE), which will be held from November 28 to December 2 in Beijing. International exhibitors account for more than 20 percent of the participants, demonstrating the strong attraction of the Expo and the Chinese market, said The China Council for the Promotion of International Trade (CCPIT), the organizer of the event, on Sunday during an event held for the 100-day countdown. The number of professional buyers and visitors is expected to exceed 100,000, according to the CCPIT.

• 300家中外企业确认参展首届链博会：8月20日，首届链博会倒计时100天活动举行，标志着筹办工作进入全力冲刺的关键时刻。中国贸促会会长任鸿斌在致辞中表示，目前已有300多家中外企业确认参展，其中国际参展商超过20%，涉及50个国别和地区，多国相关机构表示将组织高规格采购团参展参会，专业采购商和观众人数预计超过10万人次。

• The seventh China-South Asia Expo concluded Sunday, with 338 projects and a total investment of 404 billion yuan signed, organizers said. The five-day event, held in Kunming, the capital city of southwest China's Yunnan Province, attracted over 30,000 exhibitors as well as representatives and guests from 85 countries, regions and international organizations.

• 第7届南博会达成483个签约项目：8月20日，为期5天的第7届中国―南亚博览会在云南昆明落下帷幕。会议期间举办了专场活动、专业论坛等40场活动，并积极搭建招商引资平台，共达成签约项目483个，其中，签订投资项目342个，投资额4126.54亿元，同比增长2.2%；签订商贸合同141个，金额105.11亿美元，同比增长3.9%。这是新冠疫情以来南博会首次全面恢复线下举行，吸引了来自85个国家、地区和国际组织的代表嘉宾，线上线下超3万家展商参会、参展。

Greater Bay Area, Greater future

新使命，大未来

• Authorities in southern China’s metropolitan Guangzhou may introduce housing vouchers as compensation for families affected by urban renovation projects in an effort to revive the sluggish housing market, media reported Friday. The program under consideration will compensate residents whose run-down properties will be demolished in shantytown redevelopment projects, allowing them to purchase new housing. The vouchers will also be transferable.

• 传广州讨论城中村改造“房票安置”：近日有媒体报道，广州市住建部门正在讨论用“房票安置”替代过去的“回迁房安置”。这一方案如若实施，广州市未来在城中村改造中将不再安排建设回迁房，房屋被拆的村民可持房票购买商品房，多余房票还可转让。近日网传一份《广州市城中村改造房票安置实施办法（建议稿）》显示上述政策动向。知情人士透露，这份《建议稿》已下发至广州市各区，目前尚在讨论阶段，最后能否实施尚未可知。

• Starbucks said on Friday that it will establish an innovation and technology center in Shenzhen, South China, which will open next month, with an initial investment of 1.5 billion yuan to enhance its data infrastructure. After the innovation center opens, another project of the company - the Starbucks China Coffee Innovation Industrial Park - will be put into operation.

• 星巴克中国15亿建深圳创科中心：8月18日，星巴克宣布在深圳创立星巴克中国创新科技中心，用于提升自身技术能力及数据基础建设，进一步驱动门店和多渠道的数字化进程。该中心投资约15亿元，计划在今年9月投入运作。在SITC正式运作后，星巴克又一里程碑―星巴克中国咖啡创新产业园也将如期开业。

Next on industry and company news

产业及公司新闻

• In the first seven months of 2023, China's foreign trade with other BRICS countries (Brazil, Russia, India and South Africa) soared 19.1 percent year-on-year to 2.38 trillion yuan, according to data released by the General Administration of Customs (GAC) on Monday. The new figure accounted for 10.1 percent of China's total foreign trade value during January to July, marking a rise of 1.6 percentage points. In terms of exports, China's trade with these countries totaled 1.23 trillion yuan, showing a year-on-year growth of 23.9 percent, while imports from other BRICS countries reached 1.15 trillion yuan, up 14.3 percent. In addition, trade volume of China's private companies jumped 29.4 percent to 1.36 trillion yuan during the period, accounting for 57.1 percent of the total trade volume between China and the rest of the block.

• 前7月中国对其他金砖国家进出口增长19%：中国海关总署8月21日发布的最新数据显示，今年前7个月中国对其他金砖国家进出口2.38万亿元，同比增长19.1%，占中国外贸进出口总值的10.1%。其中，出口1.23万亿元，增长23.9%；进口1.15万亿元，增长14.3%。此外，海关统计数据显示，前7个月我国民营企业对其他金砖国家进出口1.36万亿元，增长29.4%，占同期我与其他金砖国家进出口总值的57.1%。 

• China’s cinema ticket sales over the summer period have exceeded 18.2 billion yuan as of Sunday, the latest data from ticketing platform Lighthouse Pro. The summer box office has already set a new record by Thursday evening when the figure hit 17.8 billion yuan, led by Chinese movies “Lost in the Stars” and “No More Bets,” breaking the previous record of 17.77 billion yuan set in 2019.

• 暑期档票房破纪录：灯塔专业版最新数据显示，截止8月20日，2023年暑期档票房已超过182.73亿元。8月17日晚，2023年中国电影暑期档票房就已突破了2019年暑期档177.78亿元的纪录，创下历史新高。目前，暑期档票房整体格局基本定型，票房前二基本花落《消失的她》《孤注一掷》。

• Merck Sharp & Dohme surpassed AstraZeneca to become China’s largest foreign drugmaker by sales in the first half of the year, thanks to soaring sales of human papilloma virus (HPV) vaccines in the country. MSD’s sales in China reached USD3.6 billion in the first six months, up 45 percent from a year earlier, according to medical data information platform Menet. AstraZeneca’s Chine sales rose 13 percent to USD3 billion in the period. 

• 默沙东中国市场收入反超阿斯利康：8月21日，根据米内网统计数据，2023年上半年默沙东以35.8亿美元的销售额超越阿斯利康的30.4亿美元，成为中国市场销售规模最大的跨国药企，同比增长超过45%；阿斯利康中国的销售增长为13%。默沙东在中国销量的激增很大程度上受到HPV疫苗销售的提振。

• Shares in Guangzhou Baiyun Airport and Shanghai Airport plunged to the exchange-imposed limit on Monday morning after rumor circulated online saying that the two airports have reached an agreement with China Duty Free Group to cut the commission rates for duty-free operations to between 15 and 20 percent, significantly lower than the ratio of 20 to 25 percent that market expected. Both airport operators issued statements in the afternoon, saying that they had never been in such discussion.  

• 白云机场、上海机场双双大跌：21日上午，A股机场航运板块震荡走低，上海机场、白云机场双双跌停，网传“上周国君社服群发的上海机场免税谈判扣点率15-20%，严重降低机场免税业绩。之前市场的预期机场扣点重谈应该维持20-25%的扣点比例，保证高保底抵扣点的合同结构”。午盘后两家机场紧急发公告称，网传扣点调整消息不实。白云机场发布公告称，与中免没有探讨过扣点调整的问题。目前公司不存在应披露而未披露的重大信息。上海机场发布澄清公告称，今日网传，上海机场将与中免重签免税协议，其扣点率大幅下降。经公司董事会核实，以上网传内容不属实。

• China's largest express delivery company SF Holding on Monday filed an application for a second listing on the Hong Kong stock exchange, the exchange's website showed. SF has chosen Goldman Sachs, Huatai Financial and JPMorgan to work on the listing, the filings showed.

• 顺丰控股向港交所递交上市申请：21日消息，据港交所文件显示，顺丰控股股份有限公司向港交所提交IPO申请，联席保荐人为高盛、华泰国际、摩根大通。 

• China Mobile on Saturday launched the largest quantum cloud computing platform in China along with China Electronics Technology Group Corp (CETGC), vowing to take quantum computing to a new level of practical use. As the country's most recent computing platform, it achieved hybrid computing of both quantum and general computing power for the first time in the industry, China Mobile said in a statement. 

• 中国电科携手中国移动发布全国最大规模量子计算云平台：8月19日，在2023中国算力大会上，中国电科与中国移动发布“全国规模最大的量子计算云平台”，这是国内首个央企合作量子计算云平台，也是业界第一次实现“量子与通用算力统一纳管混合调度”的系统级平台，该成果标志着量子计算正在逐步走向实用化阶段。 

Switching gears to financial news

金融市场消息

• China's securities regulator unveiled a package of measures on Friday, proposing steps including cutting trading costs, supporting share buybacks and encouraging long-term investment. The CSRC said late Friday it plans to reduce the handling fee in stock transactions while studying an extension of trading hours for stocks and bonds. Following the CSRC proposal, exchanges in Shanghai, Shenzhen and Beijing announced plans to reduce transaction fees starting Aug. 28. Other measures laid out by the CSRC include boosting the development of equity funds and improving the attractiveness of listed companies. The CSRC said it would boost the development of equity funds by speeding up the registration of index funds and broadening funds' access to derivatives and encourage fund managers to make countercyclical investments. The CSRC will also study measures to restrict financing activities by companies and sectors whose shares trade below net asset value or initial public offering prices. It also vowed to keep balanced development between the primary and secondary markets, by keeping up a rational pace of IPOs. Although the market had expected China to introduce a so-called "T+0" mechanism to allow shares to be bought and sold on the same day, the CSRC did not include that among its proposals, saying it could drive speculation and harm small investors. The regulator, however, did not rule out the possibility of a cut in stamp tax, but said it’s beyond its power. 

• 证监会出台一揽子举措活跃资本市场：8月18日，证监会有关负责人接受媒体采访，明确落实这一重要决策部署的一揽子政策措施，回应市场关注热点。在扩大资本市场资金量方面，证监会着力采取“将指数基金等权益类产品纳入个人养老金投资范围”等力措以吸引中长期资金入市。通过放宽指数基金注册条件、拓宽公募基金投资范围和策略等鼓励权益类基金发展；同时开出利好证券公司的系列措施。提高上市公司质量方面，通过适当限制破发或破净上市公司和行业的融资活动，以提高上市公司质量。加强投资者利益保障方面，证监会则推出“降低证券交易经手费，降低证券公司佣金费率。针对“是否实行T+0交易”，证监会认为，目前A股市场以中小投资者为主，现阶段实行T+0交易可能放大市场投机炒作和操纵风险，因此实行T+0交易的时机不成熟。证监会还表示，下一步将研究适当延长A股市场、交易所债券市场交易时间；将采取措施，确保IPO和再融资交易的“合理步伐”。此外，证监会表示，已关注到市场对调降证券交易印花税税率的呼吁和关切。从历史情况看，调整证券交易印花税对于降低交易成本、活跃市场交易、体现普惠效应发挥过积极作用。

  在证监会宣布下一步将降低证券交易经手费的同时，沪深北三大交易所齐声宣布降经手费，其中沪深交易所降幅30%，北交所在2022年12月刚降50%的基础上再降50%。此外，降低证券公司佣金费率的举措也“在路上”。

Wrapping up with a quick look at the stock market

股市收盘情况

Chinese stocks suffered another round of selling on Monday, with the benchmark Shanghai Composite down 1.4 percent to hit a nine-month low, and the Shenzhen Component sank 1.3 percent. Hong Kong’s Hang Seng Index also fell 1.8 percent, while the TECH index tumbled 2.1 percent.

A股港股大跌：周一A股大盘全天低开低走，三大指数均跌超1%。截至收盘，沪指跌1.24%失守3100点，深成指跌1.32%，创业板指跌1.6%。沪深两市全天成交额6782亿元，较上个交易日缩量664亿。北向资金全天净卖出64.12亿元。港股恒生指数收跌1.82%，恒生科技指数收跌2.1%。

Biz Word of the Day

财经词汇划重点

• A stamp tax is a tax that governments place on legal documents, usually involving the transfer of real estate or other assets. Governments can impose stamp taxes, also known as stamp duties, on documents that are needed to legally record those types of transactions, as well as on documents recording marriages, military commissions, copyrights, patents, and so forth.

• 印花税是对在经济活动和经济交往中书立、领受具有法律效力的凭证的行为征收的一种税。其因采用在应税凭证上粘贴印花税票作为完税的标志而得名。印花税法是调整印花税征纳关系的法律规范的总称。

Executive Editor: Sonia YU

Editor: LI Yanxia

Host: Stephanie LI

Writer: Stephanie LI 

Sound Editor: HUANG Qingyi 

Graphic Designer: ZHENG Wenjing, LIAO Yuanni

Produced by 21st Century Business Herald Dept. of Overseas News.

Presented by SFC

编委:  于晓娜

策划、编辑：李艳霞 

播音：李莹亮

撰稿：李莹亮，实习生黄青衣

音频制作：李莹亮

设计：郑文静、廖苑妮

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