1. The 12th meeting of the 14th National People's Congress Standing Committee has approved the Resolution on Approving the Proposal for Increasing the Quota for Local Government Debt and Replacing Existing Hidden Debt submitted by the State Council. The quota for increasing local government debt by 6 trillion yuan to replace existing hidden debt has been approved.
2.The Ministry of Finance, LAN Fu'an, stated that starting from 2024, China will allocate 800 billion yuan from newly issued local government special bonds each year for the next five years specifically for debt restructuring, with a total of 4 trillion yuan of hidden debt to be replaced. In addition, the approval by the Standing Committee of the National People's Congress of a 6 trillion yuan debt limit will directly increase the local debt restructuring resources by 10 trillion yuan.
3.According to data from the People’s Bank of China, at the end of the third quarter, the outstanding balance of RMB real estate loans was 5.29 trillion yuan, down 1% year-on-year. The outstanding balance of real estate development loans was 1.379 trillion yuan, up 2.7% year-on-year, 1.2 percentage points higher than the end of last year. The outstanding balance of personal housing loans was 375.6 billion yuan, down 2.3% year-on-year.
4.WANG Bo, deputy general manager of the Shanghai Stock Exchange, said that the exchange will step up support for mergers and acquisitions in the science and technology sector, encouraging listed companies to fully utilize mergers and acquisitions tools. The board has actively guided capital towards "hard technology" enterprises and new productive forces, and the investment value of these companies is continuously rising. Their average R&D spending ranks first among all segments on the Shanghai Stock Exchange.
5.The Shanghai Commission of Commerce and 12 other departments have issued the "Implementation Opinions on Better Leveraging Consumer Credit to Promote Consumption Upgrades in Shanghai". It encourages the replacement of traditional energy vehicles with new energy vehicles, and, under the condition of risk control, appropriately relax the application conditions for auto consumer credit. It launches home renovation consumer credit solutions.
6.According to a report by TechInsights, the semiconductor delivery time has been stable at 14 weeks for the past four quarters (including the third quarter of 2024). The delivery time for memory components has decreased by 21% on a monthly basis (i.e., by three weeks).
7.According to Shanghai Securities Securities, recently, the rare earth industry is accelerating its recovery, influenced by the supply situation in Myanmar, industry policies, and downstream demand. The rare earth products' listing price of Inner Mongolia Rare Earth has been raised for three consecutive months. As a global advantage industry of China, the strategic value of rare earth is expected to further increase in the context of global geopolitical environment fluctuations.
8.According to Securities Daily, the boom of new energy vehicles has ignited the lithium-ion battery industry, with several related listed companies reporting that the market has been in short supply since the fourth quarter and orders are approaching saturation. Experts say that the global electric vehicle market has been steadily progressing, with both tender wins and installed capacity experiencing high growth in the field of energy storage. The electric vehicle and energy storage markets have both shown good growth rates, which is the main reason driving the upward trend of the lithium-ion battery industry chain.
9.Japan used 554 billion yen in the previous quarter to twice intervene in the foreign exchange market to support the yen. Before the government's action in July, the yen fell below 160 yen against the dollar, hitting a 38-year low, partly due to speculators betting on a huge gap in borrowing costs between Japan and the United States.
10.South Korea plans to issue its first Australian dollar-denominated bonds to attract more global investors. The size of these foreign exchange stabilization bonds could be up to $300 million. The target is to issue them around early December. South Korean government bonds will be included in the FTSE Russell World Government Bond Index from 2025, which is expected to attract billions of dollars of capital inflows.
