Welcome to China Business News, NEO’s weekly roundup of top business developments as reported by news outlets in China and the region.
This week’s highlights:
- The Central Bank of China (PBOC) together with the Securities and Futures Commission, published a number of statements this week after a working meeting in support of platform companies, proposing to enhance its overseas listing process among other measures. The Governor of the PBOC, who presided over the meeting, said it was necessary to improve supervision procedures regarding platform companies’ financial activities, and assist them in becoming more technologically innovative and internationally competent. Officials are expected to introduce incentive policies, including restarting the listing process of platform companies such as Ant Group; however, after two years of political pressure, there are fears that the platform economy may not see a quick recovery in the near future. (The United Morning Post)
- The World Trade Organization stated earlier this week that the United States violated international trade regulations by requiring Hong Kong products to be labeled “Made in China.” The WTO Dispute Settlement Body panel pointed out that the U.S. applied for special measures against Hong Kong goods on the grounds of protecting the country’s “vital security interests,” ignoring the fact that Hong Kong is a member of the WTO in its own right. The U.S. strongly opposed the ruling, saying it has no intention of eliminating the requirement for Hong Kong products to ensure safety.Some scholars interviewed believe that the WTO ruling will not influence the United States, but it still has a symbolic meaning, telling the world that Hong Kong enjoys the right to preserve its own status in the incident. (Finance.sina.com)
- With the end of the year approaching, experts are observing seasonal marginal tightening of market liquidity in China. The Central Bank carried out 141 bln RMB of 14-day reverse repo operations for two consecutive days and 19 bln RMB of 7-day reverse repo to secure liquidity for the last two weeks of the year. The interest rates remained unchanged at 2% and 2.15%, respectively. (Caixin)