Wang Yang, chairman of the National Committee of the Chinese People's Political Consultative Conference. Photo: Xinhua

The Chinese government has expressed its willingness to promote peaceful and integrated development of relations across the Taiwan Strait, boost cross-Strait industrial cooperation, create a common market for the two sides and strengthen the economy of the Chinese nation.

Wang Yang, a member of the Standing Committee of the politburo of the Communist Party of China (CPC) Central Committee and chairman of the National Committee of the Chinese People’s Political Consultative Conference, made the remarks in a letter to congratulate the convening of the 2020 annual conference of the summit for entrepreneurs across the Taiwan Strait on behalf of the CPC Central Committee and its general secretary Xi Jinping.

Wang said economic cooperation was the foundation of cross-Strait relations and can achieve mutual benefits for people in mainland China and Taiwan. He said although the region was hit by the Covid-19 epidemic, cross-Strait trade still increased by double digits during the first 10 months of this year, showing the strong momentum, huge potential and high resilience of economic cooperation.

The conference, held in the port city of Xiamen in Fujian Province and Taipei via video link on Wednesday, attracted more than 700 attendees in Taiwan.

Factory-gate prices

China’s producer prices saw a narrowed decline in November amid a steady recovery in industrial activities, according to the National Bureau of Statistics (NBS).

The producer price index (PPI), which measures costs for goods at the factory gate, fell 1.5% year-on-year in November, narrowing from the 2.1% drop in October. On a monthly basis, the PPI rose 0.5% last month. Among the 40 surveyed industrial sectors, 24 saw prices rise month-on-month in November, up from 12 sectors in October.

Market demand continued to improve in November with the rising prices of industrial products, said NBS senior statistician Dong Lijuan.

Affected by the upward international prices of crude oil, the sub-index for the oil and gas extraction industry edged up 0.9% from the previous month, according to the NBS. With increasing demand for winter heating, the PPI for coal mining as well as gas production and supply sectors rose 2.2% and 2.8% month on month, respectively.

Non-profit organizations

China will launch a three-year special campaign to boost the development of community-based non-profit organizations (NPOs), according to guidelines issued by the Ministry of Civil Affairs.

During the campaign starting in 2021, efforts will be made to nurture the development of rural voluntary organizations to provide services to people with special difficulties, such as left-behind elderly persons and children, according to the guidelines.

It also calls for training personnel across the country and further developing a standardized management system for such organizations in order to form a relatively mature working mechanism by 2023.

Market liquidity

China’s central bank injected liquidity into the banking system through open market operations on Wednesday.

The People’s Bank of China injected 20 billion yuan (US$3.06 billion) into the market through seven-day reverse repos at an interest rate of 2.2%, according to a statement on its website.

With 10 billion yuan of reverse repos maturing on the same day, this led to a net liquidity injection of 10 billion yuan.

Company news

Shanghai Clearing House and Brussels-based Euroclear Bank on Tuesday jointly launched the Yulan Bond business, which is named after Shanghai’s city flower, a magnolia, and aimed at linking Chinese issuers with global investors.

The bonds will be issued through the Shanghai Clearing House, a Chinese interbank bond market clearing house. The two clearing houses are interconnected to provide registration, custody and settlement services for Chinese issuers and overseas investors of the bonds.

Data shows that in 2019, a total of 690 bonds were issued by Chinese institutions overseas, with an issuance scale of about $217.8 billion, representing a year-on-year increase of 33.29%. Compared with the traditional overseas bond issuance, Yulan bonds are issued with electronic bond registrations and are more convenient in terms of capital security and information acquisition.

DBS Hong Kong announced Wednesday that it had launched a new digital tool called “This is DBS digibanking” for small-and-medium-sized enterprises (SMEs) in the city. SMEs can set up a new business account completely digitally in as quickly as three working days with artificial intelligence-enabled instant identity verification. They can also apply via the internet for a collateral-free business loan of up to HK$8 million ($1.03 million) without the need to provide any financial statement.

DBS Hong Kong chief executive Sebastian Paredes said the bank was fully committed to helping SMEs transform for a more resilient future amid the Covid-19 epidemic.
 
“There are more than 340,000 SMEs in Hong Kong, and they account for more than 98% of the total business community in the city,” said Alex Cheung, managing director and head of Institutional Banking Group at DBS Hong Kong. “With the current need for social distancing, enabling SMEs to open a business account completely digitally in as quickly as three working days addresses a key customer pain point, and is vital to meeting their business demands and expansion needs.”

The stories were compiled by Nadeem Xu and Shan Hui and first published at ATimesCN.com.