CX Daily: Battle for China’s Deposits Pits Banks Against Regulators
TOP STORIES
Deposits /
Sources with knowledge of the matter told Caixin that in addition to preventing disorderly competition, the directive was also aimed at curbing “idle funds” (资金空转), a term that refers to money that isn’t being invested in the real economy but is circulating in the financial system or between businesses and financial institutions. Policymakers and regulators have repeatedly stressed the need to reduce these “idle funds.”
Zou Lan, director of the People’s Bank of China's (PBOC) monetary policy department, said at an April press briefing that the government would strengthen monitoring of “idle funds,” although he said he expected the problem to ease as China’s economic transition progressed, and as effective demand picked up and expectations improved.
FINANCE & ECONOMY
Economy /
Weak domestic demand and an ailing property market, compounded by extreme weather conditions, contributed to China’s lower-than-expected GDP growth in the second quarter, analysts said.
The 4.7% year-on-year growth in the April-to-June period came after an expectation-beating first-quarter figure that had some economists revising upwards their forecasts for China’s growth rate for the year.
Bonds /
China’s central bank is strongly committed to maintaining a normal upward-sloping yield curve and curtailing market risks amid the current bond rally, according to an article published Friday by Financial News, an outlet backed by the People’s Bank of China (PBOC).
“Market players should not underestimate the central bank’s resolve,” the article cited Zhang Xu, chief fixed-income analyst at Everbright Securities Co. Ltd., as saying.
Property /
The eastern Chinese city of Jinan managed to reduce its supply of unsold properties in core areas last year with help from a central bank pilot program providing cheap loans to companies that buy properties to convert into rentals.
In 2023, the estimated amount of time it would take for the city’s unsold new properties in major urban areas to be sold fell to 24 months, down from 25.3 months the previous year, according to local authorities.
Quick hits /
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BUSINESS & TECH
Huawei /
Huawei Technologies Co. Ltd. recently offloaded the intellectual property of its electric vehicle (EV) brand Aito to its automaker partner to comply with a rule requiring a car brand be owned by its manufacturer, an executive at the Chinese tech giant said.
Huawei sold Aito's trademarks and patents to Seres Group Co. Ltd., with whom it developed the brand, earlier this month in accordance with the national regulation about brand ownership, which authorities have been enforcing more stringently in recent years, Richard Yu, chairman of Huawei’s smart car unit, said in a livestream Monday.
Bottled water /
Tests carried out by the Consumer Council of Hong Kong on 30 brands of bottled waters show that 3 micrograms per liter of bromate was detected in the bottled water products of Ganten and Nongfu Spring, the maximum limit for ozonated natural mineral water and fountain water set by the EU.
However, the level is still lower than the standard — 10 micrograms of bromate per liter — set by the United States, Japan and the World Health Organization, the Consumer Council said.
Quick hits /
China Auto Roundup /
Long Read /
GALLERY
During the May Day holiday, hordes of Chinese livestreamers descended on the city of Kaifeng in Central China’s Henan province, to film Wang Po Matchmaking, a live online dating show that went viral. Hundreds of others flocked to Heze in neighboring Shandong province, to capture a shot of Guo Youcai, a livestreamer who's gained fame for his singing. Livestreaming has become a way of life and a primary source of income for millions of Chinese. Chasing dreams of viral fame and fortune, many live in their cars, waiting for the next internet trends.