Li Yang, the head of the national finance department at the China Academy of Social Sciences, said on Thursday that China’s supply side reforms must be completed via “market means.” As reported by Sina Finance, Li said the current issue of overcapacity in certain sectors would not be resolved simply by provincial leaders exerting pressure. He made his boldest statement on property “destocking”, claiming that local governments are “complicit” in allowing oversupply as they have been slow in raising down payment rates, a market mechanism to slow demand.
LeEco to transfer funds into Faraday Future project: Yicai
Yicai, citing an anonymous high level source from LeEco, said on Thursday evening that the company was currently “trying its best” to transfer money that it recently raised from investors onto the Faraday Future, a US-based electric car startup intended to rival Tesla and backed by Jia Yueting, LeEco’s CEO. Faraday Future had negotiated a deal to build a US$1 billion plant in Nevada but missed several payment deadlines with its contractor AECOM a few days ago. The state treasurer of Nevada, Dan Schwartz, told Reuters on Tuesday the project is a “Ponzi scheme” and that the state had yet to issue the US$175 million in bonds that were part of the incentive package for the plant. Jia’s company has been under scrutiny over its funding but secured US$600 million in funding from investors on Tuesday.
Chengdu to introduce property curbs in key districts
Chengdu, the capital city of Sichuan province, introduced more stringent property curbs on Thursday evening, according to Sina Finance. Buyers of residential property are to be restricted to one purchase only in the Gaoxin and Tianfu districts, it reported. Buyers must also now be either already resident in these districts or work there and have paid more than one year of social insurance.
Anbang buys 5% stake in CSCEC
Anbang Asset Management Co. Ltd bought 1.5 billion shares, constituting 5% of the total, in China State Construction Engineering Corporation Limited (CSCEC), according to the National Business Daily on Thursday night. The deal is estimated to be worth US$1.64 billion based on CSCEC’s average share price in October this year.
China Evergrande now holds more than 9.45% of China Vanke A shares
China Evergrande revealed in a statement released on Thursday night and reported by Sina Finance that it had bought 129 million shares of China Vanke between Oct. 11 and Nov. 17, bringing its total holding to 1.043 billion shares, or 9.452% of the developer.
China continues to lead Fintech in Asia
China’s venture investment in Fintech increased by 67% from the quarter before to US$1 billion for the third quarter this year, deviating from the overall declining global trend, according to a KPMG report called The Pulse of Finch cited by Caixin on Thursday night. Driven by China’s Fintech boom, Asia witnessed a quarter-on-quarter increase of US$1.2 billion in venture capital spending in the third quarter, although the number of deals decreased.
300 billion yuan in funds to bail out bad assets
The state-owned China Great Wall Asset Management Corporation is to establish funds worth 300 billion yuan (US$43.24 billion) to purchase or merge bad assets and “digest” housing inventory in the next three years, according to a report by Caixin on Thursday night.
Premier Li urges energy transformation
Premier Li Keqiang called for a radical shift in energy production and consumption in a meeting on Thursday, as reported by Caixin on Thursday night. The first priority was to promote the clean exploitation and use of coal, Li said. Increasing the use of renewable energy such as hydro, solar, wind and biomass production is also important, Li added.
China’s overseas investment keeps expanding
China’s non-financial direct investment to overseas companies totaled US$145.96 billion for the first 10 months of this year, increasing 53% from a year earlier, according to the Commerce Ministry, as reported by the Economic Information Daily on Friday. Investment into the United States saw rapid growth, rising by 173.9% year on year.