The week in renminbi: Chinese trade delegation’s US visit ends, regulators call for funding for smaller corporations, China detains FedEx pilot
GlobalCapital, is part of the Delinian Group, DELINIAN (GLOBALCAPITAL) LIMITED, 4 Bouverie Street, London, EC4Y 8AX, Registered in England & Wales, Company number 15236213
Copyright © DELINIAN (GLOBALCAPITAL) LIMITED and its affiliated companies 2024

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement
Asia

The week in renminbi: Chinese trade delegation’s US visit ends, regulators call for funding for smaller corporations, China detains FedEx pilot

Trump_China_AL_230x150

In this round-up, the US exempted 400 Chinese goods from import tariffs while China cancelled trips to US farms, two top Chinese regulators jointly addressed funding difficulties facing smaller corporations and custom authorities detained a FedEx pilot on suspicion of carrying ammunition.

After arriving in Washington DC on Thursday, the Chinese deputy-level trade delegation cancelled their planned farm visits to Nebraska and Montana and returned home on Friday.

Despite the cancellation, the Chinese Ministry of Commerce said that the talks were “constructive” in a brief Friday note. The Office of the United States Trade Representative also said in a statement that the talks were productive, adding that it looks forward to the principal-level trade talk in October.

In separate news, the US published a list of more than 400 Chinese imports to be exempted from the previously proposed 25% tariffs, according to three documents published by the Federal Register on Friday. The list of products includes Christmas tree lights, dog leashes and drinking straws.

“Global risk sentiment remains sensitive to the headline of US-China trade talk,” Tommy Xie, head of Greater China research at OCBC Bank, wrote in a Monday note. “The US equity market fell on Friday in reaction to the news about the unexpected cancellation of the Chinese delegation’s visit to US farms. Although China has denied that the cancellation was the result of negotiation, the market is expected to remain jittery with the focus shifting to whether there is any interim deal.”

*

The National Development and Reform Commission and the China Banking and Insurance Regulatory Commission jointly issued a set of guidelines to help micro, small and medium enterprises secure cheaper funding on Friday.

Measures include setting up information-sharing platforms that help banks gain easier access to smaller corporations’ credit information and encouraging financial institutions to stop treating high-quality collateral as a prerequisite for extending loans to smaller corporations.

*

Chinese authorities have detained a FedEx pilot in Guangzhou, the Wall Street Journal reported on Friday, citing people familiar with the matter. Todd A. Hohn, a former US Air Force colonel, was detained while waiting for a commercial flight to Hong Kong, where he resides.

China’s foreign ministry confirmed on Friday that the detention happened on September 12 because Hohn was carrying a box of 681 air gun pellets in his luggage.

*

China Investment Corp, China’s largest sovereign wealth fund and a major shareholder of all big four state-owned commercial banks, posted a negative return of 2.35% on its overseas investments during 2018. That marks a huge drop from the 17.5% gain a year earlier.

Peng Chun, chairman of the board, attributed the decline to “the worst performance of global equity markets in a decade.”

*

A group of reporters and editors from Chinese state-owned media outlets will sit a pilot test on Xi Jinping Thought at the end of this month, local media reported, citing documents published by China’s propaganda department.

Without passing the test, journalists will not be able to obtain their press cards, leaving them unlicensed to conduct reporting in Mainland China.

They can study for the exam with the Study Xi mobile phone app. Reportedly, the exam will have five parts – Xi Jinping thought on socialism with Chinese characteristics in the new era, Xi’s thoughts on propaganda and ideological work, Marxist views of news, news ethics and policies and news reporting and editing.

*

The Shanghai Stock Exchange approved the registration of Huatai Financial Holding (Hong Kong) Limited as a cross-border GDR conversion institution under the Shanghai-London Stock Connect.

Gift this article