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11/03/2021 Financial News: Over 700 Billion Local Government Bonds Issued in September; Real Estate Financing Said to Return to Normal in October

11/03/2021 Financial News: Over 700 Billion Local Government Bonds Issued in September; Real Estate Financing Said to Return to Normal in October Source… Visit Original Source…

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1.Local Government Bonds Issued Over 700 Billion Yuan in September

The Ministry of Finance released data showing that in September, the country issued 737.8 billion yuan of local government bonds. Among them, the issuance of general bonds are 136.5 billion yuan, and the issuance of special bonds 601.3 billion yuan. By use of proceeds, the issuance of new bonds are 571.6 billion yuan, the issuance of refinancing bonds are 166.2 billion yuan. From January to September, total 5,615.55 billion yuan of local government bonds are issued. Among them, the issuance of general bonds are 223.85 billion yuan, the issuance of special bonds are 337.70 billion yuan. In terms of use of proceeds, the issuance of new bonds are 304.80 billion yuan, the issuance of refinancing bonds are 256.75 billion yuan. The actual issuance amount of local bonds in October significantly exceeded the planned amount. It is expected that most of the new special bonds will be issued in November and will also exceed the amount of the issuance plan.

2.Multilateral Central Bank Digital Currency Bridge Project Releases Use Case Manual

(SSE: CSN) On November 3, the Multilateral Central Bank Digital Currency Bridge Research Project, supported by the BIS Hong Kong Innovation Centre and co-sponsored by the Hong Kong Monetary Authority, the Central Bank of Thailand, the Central Bank of the United Arab Emirates and the Institute of Digital Currency of the CCP Central Bank, released a use case manual to introduce the project’s application scenarios and testing progress.

The manual shows a total of 15 potential application scenarios for the Currency Bridge, including international trade settlement, cross-border e-commerce, and supply chain finance. According to the manual, the current test validates the feasibility of the Currency Bridge test platform to improve cross-border payment efficiency in international trade settlement scenarios. This test also realized the business linkage between Currency Bridge and CCP Central Bank Trade Finance Blockchain Platform and the Hong Kong Trade Linkage Platform, completing the joint verification of the order financing business and the cross-border payment capability of Currency Bridge.

3.HKMA: Study the Feasibility of Issuing Tokenized Green Bonds Through the Government Green Bond Scheme on a Trial Basis

(SSE: CSN) On November 3, at the “Hong Kong Fintech Week 2021” event, the Hong Kong Monetary Authority (HKMA) announced two new initiatives to further strengthen Hong Kong’s fintech capabilities. One of them is green bond tokenization. The HKMA said it has completed Project Genesis with the Bank for International Settlements Innovation Hub (BISIH) Hong Kong Center, which resulted in the completion of a concept certification for the issuance of tokenized green bonds to retail investors in Hong Kong. HKMA said it will further study the feasibility of issuing tokenized green bonds through the Government Green Bond Scheme on a trial basis. Another is the Anti-Money Laundering Compliance Technology Laboratory (“AMLab”). The HKMA announced that it will launch the AMLab series in collaboration with Cyberport on November 5 to drive a new phase of work on the application of compliance technology.

4.Shale Oil Discovered in Shengli Oilfield with Projected Reserves of 458 Million Tons

(SSE: CSN) According to the Sinopec press office that four shale oil special exploration wells deployed in the eastern exploration area of Sinopec’s Shengli Oilfield have recently obtained high oil production flow. Among them, the peak daily oil production of Shale Ping 1 well reached 171 tons. At present, the Shengli Oilfield has reported the first batch of predicted shale oil geological reserves of 458 million tons. According to preliminary estimates, the shale oil resources in the area amount to more than 4 billion tons, which will become a new realistic replacement field for increasing reserves and building production in the eastern part of China. The shale oil developed in this Shengli field is buried at a depth of more than 3,000 meters, with a temperature of more than 170°C, high pressure, a reserve space finer than a hair, low evolution, high density, poor mobility, and great difficulty in development, which brings great challenges to drilling, fracturing and other process technologies.

5.Food Companies to Adjust Product Prices for Raw Material Price Increases Squeeze Profits

[Caixin] Influenced by the rising commodity prices and the continuous upward movement of the industrial producer price index (PPI), food companies have increased the cost of purchasing raw materials, and many food companies have announced to raise the ex-factory prices of their products. Since October, Haitian Flavor Industry, Qiaqia Food, Hengshun Vinegar Industry, Anqi Yeast and other food companies announced price increases of up to 18%.”On October 13, leading soy sauce maker Haitian Flavor Industry (603288.SH) announced a 3% to 7% increase in ex-factory prices of soy sauce, oyster sauce and sauces, which began to be implemented on October 25. Veteran vinegar company, China Resources Yibao (Shanghai), also announced a price adjustment of 5% to 15% for some products effective November 20, 2021.

6.Most Domestic Commodity Futures Closed Up, Coking Coal Main Contract Rose Over 12%

Most domestic commodity futures closed up, coking coal rose more than 12%, power coal, soda ash rose more than 8%, coke rose more than 7%, urea rose more than 6%, methanol rose more than 3%, palm, dates, soybean oil, ferrosilicon rose more than 2%, glass, hot roll, starch, plastic, Shanghai aluminum, pulp rose more than 1%. lpg fell more than 6%, fuel oil, PTA, staple fiber fell more than 2%, crude oil, cotton yarn fell more than 1%.

7.Real Estate Financing Said to Return to Normal in October

Shanghai Securities News reporter learned from the relevant departments, October financial institutions to real estate financing are said to returned normal financing. In the first three quarters of this year, the growth rate of real estate loans slowed down significantly. Data show that at the end of the third quarter of 2021, the balance of RMB real estate loans was 51.4 trillion yuan, up 7.6% year-on-year, 4.3% lower than the growth rate of various loans and 1.9% lower than the growth rate at the end of the previous quarter. The data also showed that at the end of the third quarter of 2021, the balance of real estate development loans was 12.16 trillion yuan, an increase of 0.02% year-on-year and a growth rate 2.8% lower than that at the end of the previous quarter.

For the changes in the real estate development loan market, Zou Lan, director of the Department of Financial Markets of the People’s Bank of China, said: this is due to the recent exposure of individual large real estate enterprises, the risk appetite of financial institutions for the real estate industry has dropped significantly, there is a consistent contraction; on the other hand, some financial institutions have some misunderstanding of the “three lines and four files” financing management rules, so that the original project should be reasonably supported by the loan, but also to a certain extent caused some real estate enterprises capital chain tightness.

8.Lithium Metal Price Up by 20,000 Yuan / Ton

Shanghai Steel Association released data show that today some lithium materials offer continued to rise. The price of Electrolytic cobalt up by 5000 yuan / ton; the price of lithium metal up by 20000 yuan / ton. In term of cathode materials, ternary materials price up by 5000 yuan / ton and electrolyte prices up by 1000-3000 yuan / ton.

【G Translators- Financial Team】
Author: 和理非

Disclaimer: This article only represents the author’s view. Gnews is not responsible for any legal risks.

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