(Yicai Global) Sept.9 -- On Sept. 6, the People's Bank of China revealed it would cut the reserve requirement ratio at financial institutions by 0.5 percentage points on Sept. 16. It will reduce the rate further by the same amount on Oct. 15 and Nov. 15 for urban commercial banks that only operate in provincial-level administrative regions. This month's cut should release about CNY900 billion (USD126.4 billion) in long-term funds, a PBOC official said.
On Sept. 6 and Sept. 7 at the China Development Forum 2019 Symposium in Beijing, figureheads at several multinational companies said China's determination to deepen its reforms will not waver and that the country remains a target for global capital investment.
On Sept. 7, the central bank revealed China's forex reserves were worth nearly USD31.1 trillion at the end of August, up USD3.5 billion on the month and USD34.5 billion from the beginning of the year. Gold reserves amassed 62.45 million ounces, up 190,000 ounces from July and marking the seventh straight month of China increasing its holdings of the precious metal.
The Shanghai Composite Index gained 3.93 percent last week. The Shenzhen Component Index rose 4.89 percent and the ChiNext Price Index jumped 5.05 percent.
The capital adequacy ratio among China's commercial banks was 14.12 percent on Sept. 2, up 0.58 percentage points from a year earlier, the China Banking and Insurance Regulatory Commission said that day. Insurers' comprehensive and core solvency adequacy ratios were at 245.3 percent and 233.4 percent. Yuan-denominated loans supporting infrastructure, innovation and technology in China's real economy rose CNY10.8 trillion (USD1.5 trillion) over the first seven months of 2019, some CNY780 billion more than the increase over the same period last year.
By Sept. 6, all 36 brokers listed in Shanghai and Shenzhen had issued their financial reports for August. They did markedly better than the same period significantly a year earlier, with Guotai Junan Securities earning the highest operating income: CNY2.6 billion.
In August, the property trust products run by 68 trust firms had fallen 46.4 percent in number to 281 and 27 percent in value to CNY58.1 billion. Increasingly strict regulation was the main problem, one industry professional said, adding that the period of rapid growth was likely at its end.
China's summer box office takings were up 2 percent this year at a record high CNY17.6 billion. As of Sept. 1, Ne Zha had raked in CNY4.7 billion, making it China's second-most successful film at cinemas ever.
Editor: James Boynton