Pudong ib Shanghai. Photo: Wikimedia Commons/King of Hearts

China will increase its efforts to deepen reform and the opening-up of its stock markets and remove institutional barriers that hinder the free flow of factors to lay a solid foundation for the high-quality development and the building of a modernized economic system, according to a document issued by the Communist Party of China (CPC) Central Committee and the State Council on Thursday.

China will promote market-based allocation of factors of production including land, labor and capital, while accelerating the development of the market of technology and data factors, it said.

It will improve basic mechanisms on the stock market, accelerate the development of the bond market, increase the supply of effective financial services and expand financial opening-up.

More industrial reforms

The country will push forward the reform of the rural land expropriation system, adjust policies on industrial land use and optimize its land management mechanism, according to a government document.

The document underlined better protection and application of intellectual property rights (IPRs) and support for the marketization of independent IPRs in fields such as major equipment and key new materials while encouraging the integrated development of factors of technology and capital.

Efforts will be made to nurture new industries, businesses and models of the digital economy and support the utilization of data in fields including agriculture, industry, transport, education and urban management.

Market-oriented pricing mechanisms and trading platforms of production factors should be further optimized, according to the document.

Bond futures 

From Friday, China’s commercial banks will be allowed to participate in treasury bond futures business and use financial tools to manage their interest rate risks. The new development will help enhance the resilience and vitality of financial markets and prevent and resolve market risks.

On Friday, Industrial and Commercial Bank of China, Bank of China and Bank of Communications participated in the country’s treasury bond futures markets.

In the past, treasury bond futures investors of China Financial Futures Exchange were brokerages and fund and asset management companies, instead of commercial banks.

Property sales targets

Forty Chinese property developers expected their sales for 2020 would be less than 14% on average, the lowest in recent years, the China Securities Journal reported. Among them, 34 enterprises raised their sales targets while one was unchanged and five lowered their targets.

Of the 34 enterprises that raised their sales targets, most set a 10-20% sales growth.  Evergrande China expected a 30% sales growth.

Large and medium-sized housing enterprises generally give cautious sales targets. Sunac China, China Overseas Land & Investment Ltd, China Resources Land and Longfor Group set sales growth below 10%.

Company news

Shanghai Environment Group, a Shanghai-listed company, said its net profit grew 6.65% to 616 million yuan (US$88 million) for the year ended December 31, 2019, from a year ago. Operating income increased by 41.19% to 3.65 billion yuan. The company proposed a final dividend of 0.85 yuan per 10 shares.

Shanghai Environment Group Co, Ltd is one of the earliest professional environmental protection enterprises in the solid waste industry in China. The company engages in domestic waste and municipal sewage management businesses. Its new businesses include hazardous waste, medical waste, soil remediation, municipal sludge and solid waste recycling (kitchen waste and construction waste) management.  

Bilibili, a video sharing platform in China, said it will receive approximately $400 million in equity investment from Sony Corporation of America (SCA), a wholly-owned subsidiary of Sony Corporation.

SCA will subscribe for newly issued Class Z ordinary shares of Bilibili. The transaction is expected to close on or before April 10, 2020. Upon closing, SCA will beneficially own about 4.98% of Bilibili’s total issued shares.

Bilibili and Sony will further pursue collaboration opportunities in the entertainment business in the Chinese market, including anime and mobile games.

The story was written by Xu Jiangshan and first published at ATimesCN.com. It was translated into English by Nadeem Xu.