Exports of processed goods fell 7% in the first nine months of this year compared to the same period in 2015, said the Shanghai Securities Journal, citing customs data released on Thursday. The decline was casued by the slowing global economy and competition from Southeast Asian economies with lower labour and supply costs, said Sun Yibiao, the deputy head of China’s customs department. The sector refers to imported raw materials and parts re-exported as finished products. China’s total exports declined 1.9% in the same period, according to the report.
Government blocks loans to public-private partnerships
The Finance Ministry will block loans to public-private partnerships as part of its drive to wean projects off government funding and encourage private investment, acording to a report issued on September 24 and reported by the Economic Information Daily. The report stresses the need to tighten regulation of PPP projects.
Unregulated online payment systems remain a problem, PBOC says
Online payment methods such as Alipay and WeChat Pay are now better regulated, but the industry in China is still developing and risks remain from unlicensed companies, Fan Yifei, the deputy governor of the PBOC, said Thursday as reported by Xinhua news agency. Fan said the central bank remains “open” and “accommodating” towards these new technologies, but urged companies to improve their own regulatory mechanisms in line with the PBOC’s guidance. China is set to release white papers on regulatory frameworks for non-bank online payments and internet financing. Online payment methods and internet financing have come under scrutiny of the Chinese authorities in the last few months.
China’s economy faces internal, external uncertainties
Shrinking exports caused by the global economic slowdow combined with the government crackdown on property speculation both pose threats to China’s economy, according to a report by the Bank of Communications cited by Caixin. The report said tougher regulations on mortgages and expanding land supply may discourage investment in real estate development.
China will continue selling US treasuries, analyst says
China’s central bank will continue reducing its holdings of US treasuries to steady the yuan exchange rate and to diversify its debt purchases, said Zhao Yayun, an analyst at Housheng Think Tank, in a Securities Daily report. China reduced its holdings of US debt in August by $33.7 billion to $1.1851 trillion, the lowest since November 2012, according to the report.