The People's Bank of China. Photo: Wikimedia Commons

A “three-year action plan” for the reform of state-owned enterprises in China is expected to be released in the near future. 

Experts believe that because of the Covid-19 epidemic, in order to achieve business objectives and reform tasks set at the beginning of the year, the reform of state-owned enterprises will be accelerated in the second quarter, and mixed reform, listing, restructuring and integration will enter an accelerated period.

Since March, the Covid-19 epidemic situation had greatly improved and there had been a resumption of work and production, according to CSC Financial Co Ltd.

Although overseas markets remained volatile, the Chinese economy continued to recover due to the resumption of production and loosening monetary policies.

PBoC steps in

The People’s Bank of China (PBoC) announced on March 10 that the structural deposit guaranteed rate of return of some banks is significantly higher than the general deposit interest rate, which is not conducive to maintaining competition in the deposit market and should be regulated.

The PBoC recently issued a note on strengthening the management of deposit interest rates to various branches and major financial institutions, guiding the market interest rate pricing self-discipline mechanism to strengthen the self-discipline management of deposit interest rates, including bringing the guaranteed rate of return on structural deposits into the scope of self-discipline management.

Construction resuming

The resumption rate of national housing construction and municipal infrastructure projects has reached 58.15%. The Ministry of Housing and Urban-Rural Construction announced on March 10 that as of March 8, a total of 192,500 housing construction and municipal infrastructure projects had been under construction and 111,900 have resumed. The start-up and rework rate reached 58.15%.

Auto market down

Retail sales in the auto market are forecast to fall 8% annually in 2020, compared with the previous forecast of a 5% decrease. According to a statement issued on March 9, if there is no strong stimulus policy at the national level, the negative growth rate of the auto market in 2020 may further deepen. Retail sales are now forecast to fall 8% year-on-year in 2020, compared with the previous forecast of a 1% growth.

Tesla complaint

Tesla’s domestic Model 3 received a consumer complaint that the self-driving hardware HW3.0 version shown in the “environmentally friendly car list” had been “reduced” to a HW2.5 version with a performance difference of 21 times. Officials from the Ministry of Industry and Information Technology interviewed Tesla (Shanghai) Co, Ltd on March 10, and ordered Tesla to immediately rectify the situation in accordance with the relevant provisions.

Securities risk

Founder Securities issued a risk announcement, saying that a trust fund of 230 million yuan (US$33 million) that it subscribed was used by the trustee CITIC Trust to issue loans to Founder Group, which will use the money to repay its debt. It said it will actively take all possible measures to protect its rights.

This article was written by Huang Wanyi and Xu Jiangshan and first published at ATimesCN.com.

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