Hi everyone. I’m Stephanie LI.
Coming up on today’s program.
Guangzhou becomes the latest city to support sales of mortgaged properties in a bit to spur pre-owned home market;
Taikonauts in orbit salute China's manned space program on 30th anniversary.
Here’s what you need to know about China in the past 24 hours
The People’s Bank of China is encouraging cities to allow the sale of second-hand houses that still have a mortgage attached to them, in a shift of policy aimed at boosting the turnaround of properties in the pre-owned home market. The central bank’s branch in Guangzhou, South China’s Guangdong Province is spearheading the new measure.
The PBOC’s Guangzhou branch has contacted institutions and banks within its jurisdiction expressing support for such a scheme, media reported yesterday.
By allowing pre-owned homes with existing loans to be sold, it will greatly shorten the turnaround period, lower transaction costs and improve convenience, all of which will encourage sales in the secondhand housing market, according to a document released by PBOC’s Guangzhou arm.
Previously, properties could not be traded until the mortgage was paid off. Under the new policy, title deeds can be exchanged after transferring the mortgage, household registration and other mortgage-related procedures to the buyers.
“The measures introduced in Guangzhou are a new way of selling pre-owned homes and will have a positive influence,” said Li Yujia, chief researcher at the housing policy research centre of the Guangdong Urban & Rural Planning and Design Institute. They will help save costs for the parties involved, shorten the turnover time and boost sales of used properties.
The new policy is expected to simplify the sale of used homes and accelerate the circulation of properties. However, it is crucial that all funds involved are handled by a notary trusted by all parties and that this notary ensures the rights and interests of both the seller and buyer as well as the creditor, Li said.
The scheme has already been piloted in over ten other cities, such as Nanjing and Suzhou in eastern Jiangsu province, Jinan in eastern Shandong province and Kunming in southwestern Yunnan province, according to data from Centaline Property.
The Shenzhou-14 taikonauts, Chen Dong, Liu Yang and Cai Xuzhe, who are aboard the Tiangong space station, gave an off-Earth salute to all participants in China's 30-year manned space program, according to the China Manned Space Agency on Wednesday. The three taikonauts also stamped a commemorative envelope, which is printed with an image of the T-shaped space station that China aims to finish building by the end of 2022.
Moving on to regional highlights
A total of 15.46 million mu (about 1 million hectares) of afforestation has been completed across 11 provinces and municipalities along the Yangtze River Economic Belt so far this year, said the National Forestry and Grassland Administration on Wednesday. Compared to 2016, areas marked by rocky desertification and soil erosion were reduced by 42.33 million mu and 70.95 million mu, respectively. Ninty-one national forest cities have been built in the region.
Greater Bay Area, Greater future
Hong Kong Chief Executive John Lee said on Wednesday that the SAR's financial system remains resilient, expressing his full confidence in the regional development of the Greater Bay Area despite challenges in the world's geopolitical and economic landscape. Hong Kong, as a "resilient global finance and trading hub", will continue to boost the region's future development, he said.
Next on industry and company news
China now sees 10.99 million NEVs run on the streets, accounting for half of the world's total running NEVs, the NDRC said on Thursday. In the first eight months this year, China's NEV production and sales hit 3.97 million and 3.86 million respectively. Meanwhile, the country's green power consumption made up 25.5 percent of the total in 2021, up 11 percent from 2012, according to the NDRC. And the country's energy consumption per unit of GDP also reduced by 26.4 percent in 2021 compared with level in 2012.
China had over 2.1 million 5G base stations by the end of August, accounting for 19.8 percent of its mobile base stations, up 5.5 percentage points from the end of 2021, according to the MIIT on Wednesday. Some 677,000 5G base stations were built in the first eight months of this year. By the end of August, the number of mobile Internet of things (IoT) connections in China had reached 1.698 billion, surpassing the number of mobile phone users for the first time, said the ministry.
The six listed carriers, including Air China, China Eastern Airlines and China Southern Airlines, recorded 24.37 million passenger trips in August, up 52.7 percent from the same period in 2021, and recovering to 50.2 percent from 2019, media reported on Wednesday, citing the carriers' monthly data.
Huawei's latest flagship products Mate50 series pricing between 5,499 and 7,799 yuan kicked off sales on Wednesday. A 5G phone case that is developed by a Chinese tech firm SoyeaLink and can help Huawei's smart phone connect to the 5G network was also available to the market.
British auto dealer Pendragon is in advanced discussions with BYD to be its UK launch partner as China's biggest electric-vehicle maker enters the market later this year, said the London-based company on Wednesday.
Earnings reports express
Trip.com outperformed market expectation with a half-year revenue of 8.13 billion yuan, according to China’s leading online travel platform’s interim financial results on Thursday. Net income for the second quarter was 43 million yuan, which improved from net loss of 1 billion yuan for the previous quarter, which the company attributed to the continued progress towards full recovery of the global travel industry. Both air-ticket and hotel bookings on global platforms increased over 100 percent year over year in the second quarter, while staycation travel continued to serve as a major contributor to the recovery of the Chinese domestic market, with local hotel bookings increasing by over 30 percent from pre-pandemic level.
Switching gears to financial news
As of September 20, a total of 110 companies have been listed on the Beijing Stock Exchange, according to the bourse on Wednesday. During the first half of this year, the combined revenue of the companies listed on the exchange stood at 44.15 billion yuan, while net profits totaled 4.28 billion yuan, up 33.04 percent and 19.71 percent year-on-year, showing strong vitality and resilience.
The Chinese currency RMB's global share was up from 2.2 percent in July to 2.31 percent last month, according to the Society for Worldwide Interbank Financial Telecommunication on Thursday. The currency remained the fifth most active currency. In August, the RMB payments value gained 9.25 percent from a month ago, higher than the 4.01-percent increase in that of all payments currencies.
In 2021, China had 6.2 million millionaires, up by more than a million from 2020, while globally the total number of millionaires increased by 5.2 million to 62.5 million. The number in China is expected to double to 12.2 million in five years time, said a report by Credit Suisse on Tuesday.
China's equity exchange-traded funds (ETFs) posted a net inflow of roughly 33 billion yuan over the past month, signs of bargain hunting in a bearish market, media reported on Thursday.
Wrapping up with a quick look at the stock market
China’s capital market recorded a degree of fluctuation in the wake of an overnight US interest rate hike, with stock markets edging down and the offshore yuan weakens past 7.1 against the US dollar on Thursday. By the close, the benchmark Shanghai Composite edged down 0.27 percent and the Shenzhen Component fell 0.84 percent. The dive on Hong Kong stock market was even sharper, with the benchmark Hang Seng Index once breached 18,000 points for the first time in 11 years before ending down 1.61 percent.
Biz Word of the Day
The Internet of Things (IoT) is the concept of connecting any device to the Internet and to other connected devices. The IoT is a giant network of connected things and people – all of which collect and share data about the way they are used and about the environment around them.
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Host: Stephanie LI
Writer: Stephanie LI, HUANG Yuyan
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