Financial Services Talking Points 26-11-2015

26th Session of US-China Joint Commission on Commerce and Trade

The 26th Session of the US-China Joint Commission on Commerce and Trade in Guangzhou has been concluded successfully with agreement being reached in several key areas. The Commission focused on intellectual property rights, pharmaceuticals and medical devices, competition policy and technology policy. At present, China and the United States are each other’s second biggest trading partners. Click here for the full article.

 

China accepts Australian coal concerns

Chinese Premier Li Keqiang has assured Prime Minister Malcolm Turnbull that growth in the Chinese economy should continue at “about 7 per cent” amid concerns that an already low coal price may continue to fall. New environmental regulations targeting sulphur emissions will introduce requirements for coal quality. These new requirements have been labelled a “significant impost” on free trade by BHP Billiton. Mr Li has acknowledged the high quality of Australian coal and made commitments towards streamlining the testing process. Click here for the full article.

turnbull

Prime Minister Turnbull receives gift from Premier Li Keqiang, Australian Financial Review, “China accepts Australian concerns on coal”. 22-11-15.

 

Aussie dollar higher despite fall in confidence

The Australian dollar is higher despite a fall in consumer confidence and commodity prices. Holding at around 72 cents to the USD, the rise has been attributed to a weakening greenback which has suffered in light of poor US economic data and rising oil prices. How far the Aussie dollar can rally with concerns around the health of the global economy remains a matter of debate. Weakness in the resources sector is still a significant hurdle which must be overcome if any significant rise is to take place. Click here for the full article.

 

 Duzhe seeks $78m from Shanghai IPO

Duzhe Publishing & Media Co Ltd, publisher of The Duzhe (The Readers) is set to raise $78m US in a Shanghai initial public offering. Revenue for the first three quarters of the year has increased 10% on last year’s levels. Duzhe are raising capital to expand their magazine titles and to focus on digital publications. The company has also started expanding into film and television with its drama series “The Empress of China” earning a reported 20 percent return on investment. Subscription will begin on 1st December 2015. Click here for the full article.

 

 China Banking Regulator Commission release Q3 supervisory statistics

Accumulated net profits of Chinese commercial banks has continued to rise to the end of the third quarter 2015. Lending has been focused on agro-related projects and SME’s. Loans to government subsidized housing projects have risen by over 50% on 2014 amounts. While the ratio of non-performing loans to total loans has increased, the high capital adequacy ratio of commercial banks combined with their generally high levels of liquidity suggests lending can continue to grow going forward. Click here for the full article.