China to expand cross-border RMB use -- China will continue to expand cross-border use of its currency Renminbi yuan this year, according to the central bank. The global use of the Chinese yuan is one highlight of China's financial reforms over about a decade, Pan Gongsheng, deputy head of the People's Bank of China (PBOC) said at a meeting on May 7. Pan said China would gradually make the RMB capital account convertible, consolidate market-oriented interest rate reform and improve macro prudential regulation.
Major commercial banks raise Beijing mortgage rate -- Four major Chinese commercial banks have raised their mortgage rates for first-home purchasers in Beijing, a move expected to further cool the local property market. The Beijing branches of the Industrial and Commercial Bank of China, China Construction Bank, Agricultural Bank of China, and Bank of China have decided to lift their floor mortgage rates for first-home purchasers from 1.05 times to 1.1 times of the central bank's bench mark interest rate. For a first-home buyer who would like to borrow one million yuan (157,100 U.S. dollars) over 25 years, the mortgage rate change means he or she would have to pay an additional 145 yuan each month. The mortgage rate for buying second homes remains unchanged at 1.2 times of the central bank's bench mark interest rate.
Hainan targets 8pct annual growth of output value in construction sector by 2020 -- South China’s Hainan Province has striven to achieve 8 percent of average annual growth of the total output value in the construction industry by 2020, according to a document released by the local government on May 8. More than 80 percent of the province's housing construction projects will be supervised by means of informatization and the construction quality will be further improved by 2020, said the document. According to the local government, Hainan will vigorously develop green building and prefabricated building, promote the transformation and upgrading of the construction industry, and help facilitate its construction of free trade pilot zone and free trade port with Chinese characteristics.
China seeks public comments on draft CDR rules -- China's securities regulator has issued draft rules on the issuance and trading of China Depositary Receipts (CDRs) for public comments. A China Securities Regulatory Commission (CSRC) online statement on May 4 revealed the draft rules on CDRs, with detailed procedures and information disclosure requirements. The draft rules lay the institutional foundation for innovative firms to return to the domestic capital markets via the issuance of CDRs, while creating conditions for the launch of the Shanghai-London stock connect program. The public have until June 3 to comment on the draft rules.
China's 2018 local government poverty alleviation fund already in place -- China's central government has dispensed all its planned 2018 poverty alleviation funds to local governments, two months earlier than last year. The poverty alleviation fund stands at 106 billion yuan (16.7 billion U.S. dollars) this year, 20 billion yuan more than last year. The additional 20 billion yuan will be used to support areas of extreme poverty.
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