CBN丨Foreign investment in China picks up in recent months

Hieveryone.I’mStephanieLI.

Comingupontoday’sprogram

• ForeigninvestorshikeholdingsofChinesebondsbyrecordlevels;
• Chinaunveilsplantoboost"silvereconomy".

Here’swhatyouneedtoknowaboutChinainthepast24hours 

ForeigninvestmentinChinaispickingupasoverseasinvestorsmadenetpurchasesofChineseonshorebondsformonths,includinganetpurchaseof$24.5billioninDecember,thehighestlevelinalmosttwoyears,theStateAdministrationofForeignExchangesaidonMonday.

Thiscameafterforeigninvestorspurchasedanet$33billioninonshorebonds,thesecond-highestonrecord,theadministrationsaid.InDecember,netcapitalinflowofforeigndirectinvestmentalsojumpedandcameinatmorethan$10billion. 

AccordingtodatareleasedbythePeople’sBankofChina’sShanghaiheadquartersyesterday,non-Chineseinstitutionalinvestorsheld3.7trillionyuan($510.9billion)ofbondsintheinterbankmarketasofDec.31,2023,accountingforalmost3percentofthetotal.

Morethan1,100foreigninstitutionshaveenteredtheChinesebondmarketasoflastyearandmorethan95percentofthemdidthatthroughtheBondConnect,atradingmechanismbetweenthemainlandandtheHongKongSAR.InDecember,10newinvestorsjoined.

TradeingoodswasalsoamajorsourceofChina'scross-bordercapitalflows.InboundcapitalflowsinthissectorinDecemberrose12percentyear-on-yearand37percentmonth-on-month,SAFEdatashowed.

Meanwhile,theadministrationalsoreportedthatChinesebankssawanetforexsettlementdeficitof31billionyuan($4.36billion)inDecember.Inyuanterms,forexpurchasesbybanksexceeded1.43trillionyuan,andsaleswereapproximately1.47trillionyuan.

In2023,forexpurchasesbybankscameinat15.53trillionyuan,andsalestotaledapproximately16.06trillionyuan.

"Ingeneral,China'sforexmarketin2023operatedsteadilywhileshowingstrongresilience.Theyuan'sexchangerateremainedstableandwithinareasonablerangestartinginNovember2023.Thebalanceofinternationalpaymentswasstableandforexreserveswerestableatmorethan$3.1trillionthroughouttheyear,"saidWangChunying,deputyheadoftheSAFE.

• China'sStateCouncil,thecabinet,onMondayunveiledasweepingguidelineonpromotingthedevelopmentofthe"silvereconomy,"ortheelderlycareindustry,cateringtoarapidlyagingpopulationneedingservicesrangingfrommealdeliverytonursinghomesandentertainmentoptions.China'ssilvereconomycouldreportedlybeworthasmuchas30trillionyuan($4.18trillion)by2035.Theguidelinecontains26specificmeasuresinfourareas,includingtacklingurgentchallengesfacedbytheelderly,expandingsupplyofelderlycareproductsandservices,andfosteringindustrieswithvastpotential.
• ChinaandSwitzerlandhavecompletedthejointfeasibilitystudyonupgradingtheChina-SwitzerlandFreeTradeAgreement(FTA)andagreedtosupporttheearlylaunchofformalFTAupgradenegotiations,thetwosidesannouncedonMondayduringtalksbetweenChinesePremierLiQiangandPresidentoftheSwissConfederationViolaAmherdinBern,Switzerland.ChinaalsoannounceditwillwaivevisarequirementsforSwissnationalswhileSwitzerland saidit willofferconvenientvisaprocessesforChinesecitizensandcompanies. LiispayinganofficialvisittoSwitzerlandandisscheduledtodeliverahighlyanticipatedspeechatthe DavosannualmeetingonTuesday.
• MorethanhalfoftheJapanesecompanieswithoperationsinChinamaintainedorincreasedtheirinvestmentinthecountry,accordingtoanofficialsurvey.Fifteenpercentoftheabout1,700JapanesefirmsinChinapolledbytheJapaneseChamberofCommerceandIndustryinChinasaidtheyhikedtheirinvestmentinthecountrylastyearfromthepreviousone,while38percentclaimedtheirinvestmentinChinaremainedunchangedintheperiod.Meanwhile,25percentofthemreducedtheirinvestment,andtheremaining22percentdidnotinvestatall.

GreaterBayArea,Greaterfuture

• HongKongFinancialSecretaryPaulChanhasheldbilateralmeetingswithpoliticalandbusinessleadersduringtheongoingDavosmeeting.ChanmetSaudiArabia’sfinanceministerMohammedAl-Jadaantodiscussdeepeningfinancialandbusinesscooperation.ChanalsoexchangedviewswiththeVicePresidentofNigeria,KashimShettima,onglobaleconomicdevelopments.ThefinancechiefalsotoldrepresentativesoftwocompaniesspecializinginfintechandartificialintelligencethatHongKongispressingaheadwithdevelopingdigitalassetsina“prudentandorderly”manner,andhewelcomesfiat-basedstablecoinfirmstoestablishthemselvesinthecity.
• SevencompaniesbasedintheGreaterBayAreahavejoinedhandstosetupanew-typeenergystorageecosystemintheareawithnewenergyvehiclesasakeypart.ElectriccarmakerGACGroup,propertydevelopersGuangzhouYuexiuHolding,GuangzhouPearlRiverEnterprisesGroup,PolyDevelopmentsandHoldingsGroup,andChinaVanke'ssouthernregiondivision,homeappliancegiantMideaGroup,andenergystorageequipmentsupplierandenergystorageprojectcontractorChinaSouthernPowerGridTechnologysignedastrategicpartnershipdealonJan.11,togivefullplaytotheirtechnologicaladvantagestoincreasetheintelligentizationleveloftheautomotive,realestate,andsmarthomeindustriesandpushforgreentransformation,accordingtotheinformationreleasedbythesecompanies.
• Shenzhenispoisedtologmorethan1trillionyuaninthesalesofconsumergoodslastyearasthetechhubbecomesanincreasinglypopularshoppingdestinationforthoselivinginnearbyHongKong. Inthefirst11months,theretailsalesofconsumergoodsinShenzhenjumped7.3percentyearonyearto950billionyuanandisexpectedtotop1trillionyuanbytheendofDecember,accordingtodatafromtheShenzhenMunicipalBureauofStatistics. 
• Nearly70tradegroupsfromthemainland,SoutheastAsia,theMiddleEast,Australia,theUSandEurope,haveconfirmedtheirattendanceatthe17theditionoftheAsianFinancialForuminHongKonglaterthismonth,ChiefExecutiveJohnLeesaidonTuesday.ThenumberofspeakersfromtheMiddleEasthasincreasedfromoneortwotoeightthistime,whereasthenumberofthosefromASEANincreasedfromfiveto14,accordingtotheCE.

Nextonindustryandcompanynews

• Applesaiditwilllaunchalimited-timeofferfortheiPhone13,theiPhone14,thenewlyreleasediPhone15series,andsomeMacBookAirlaptopsonitswebsiteandbrick-and-mortarstoresinChinatocelebratetheupcomingChineseNewYear.Customerscansaveupto500yuan($70)byusingspecificpaymentmethodswhenbuyinganiPhone15,iPhone15Plus,iPhone15Pro,iPhone15ProMax,iPhone14,iPhone14Plus,andiPhone13fromJan.18to21,theUStechgiantsaidyesterday.The13-inchand15-inchMacBookAirwithM1orM2chipswillbediscountedbyupto800yuan.
• PilbaraMineralssaidChinesebatterymaterialssupplierGanfengLithiumGroupplanstonearlydoubleitspurchaseofspodumeneconcentratefromtheAustralianlithiumproduceroverthenextthreeyearstoensurethesupplyofrawmaterialsdespitetumblingprices.PilbaraMineralsandGanfengLithiuminkedanamendmenttotheirexistingofftakedealyesterday.Thepurchasewillriseto310kilotonsperannumofspodumeneconcentratefrom160ktpa,withthesalespricetocontinuetobebasedontheprevailingmarketprice.
• SalesofChina-madeautomobilestoRussiasoared2.8-foldlastyearfrom2022,asRussiabecomesanincreasinglyimportantmarketforChinesevehiclemanufacturers.ChineseautomakersincludingChery,GreatWallandGeelysold458,317carsinRussiain2023,accountingfor49percentofRussia’sautosalesthatyear,accordingtodatarecentlyreleasedbytheAssociationofEuropeanBusiness.

Switchinggearstofinancialnews

• ThenumberofChinesecompaniesthathavereceivedapprovaltolistonoverseascapitalmarketshasjumpedsincethebeginningofthisyear,encouragedbylocalregulators.FourteencompanieshaveobtainedapprovaltolistabroadfromtheChinaSecuritiesRegulatoryCommissionthisyearasofyesterday.Some91otherfirmsareinthequeue,with70percentplanningtolistinHongKongandtherestonNASDAQ.

Wrappingupwithaquicklookatthestockmarket

• ChinesestocksroseonTuesdayasthebenchmarkShanghaiCompositeandtheShenzhenComponenteachadded0.3percent,whileHongKong’sHangSengindexsank2.2percentandtheTECHindexdropped2.3percent.

BizWordoftheDay

• Thesilvereconomyistheaggregateofaseriesofeconomicactivitiessuchasprovidingproductsorservicestotheelderlyandpreparingforoldage,whichisseenofhugepotential.

ExecutiveEditor:SoniaYU

Editor:LIYanxia

Host:StephanieLI

Writer:StephanieLI 

SoundEditor:StephanieLI

GraphicDesigner:ZHENGWenjing,LIAOYuanni

Producedby21stCenturyBusinessHeraldDept.ofOverseasNews.

PresentedbySFC

编委: 于晓娜

策划、编辑：李艳霞 

播音：李莹亮

撰稿：李莹亮

音频制作：李莹亮

设计：郑文静、廖苑妮

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