The Sunday Mail
Manyika Kangai
China Investigates Deadly Plant Fire
The State Council, China’s cabinet, has decided to set up an investigation team after a fire occurred at a plant in central China’s Henan Province. The fire broke out at around 4 pm (local time) on Monday at the plant of a commerce and trade company in the city of Anyang, leaving 38 people dead and two others injured. The team is led by the Ministry of Emergency Management (MEE), with the participation of the Ministry of Public Security, All-China Federation of Trade Unions and the People’s Government of Henan Province. Chinese President Xi Jinping ordered all-out efforts to rescue and treat the injured after the fire occurred and urged efforts to ascertain the cause of the incident and hold relevant people accountable in accordance with the law.
China’s Prime Rates Remain Unchanged
China’s one-year Loan Prime Rate (LPR), a market-based benchmark lending rate, came in at 3,65 percent, unchanged from the previous month. The over-five-year LPR, on which many lenders base their mortgage rates, also remained unchanged from the previous reading of 4,3 percent, according to the National Interbank Funding Centre. The country had lowered the one-year rate by 5 basis points to 3,65 percent in August. The over-five-year rate had been slashed by 15 basis points twice this year, first in May and again in August to the current figure. The monthly released data is a pricing reference rate for banks.
China Strengthens Policy Support for Real Estate Sector
The People’s Bank of China (PBOC) and the China Banking and Insurance Regulatory Commission issued a 16-step guideline pledging to stabilise loan supply for real estate development and support the reasonable demand for individual housing loans. Support will be given to two policy banks for issuing specific loans to qualified borrowers to ensure the delivery of housing projects. Commercial banks are encouraged to grant loans for the acquisition of real estate projects in a prudent and orderly manner, while house buyers might enjoy repayment extensions on their housing loans under certain circumstances. The guideline reiterated that “housing is for living in, not for speculation”, and called for city-specific measures.
China Details Multiple Measures to Spur REITs
China has rolled out a slew of measures to develop Real Estate Investment Trusts (REITs) as part of efforts to revitalise existing assets and boost effective investment. The country will expand the pilot scheme for REITs to cover the spheres of new energy, water conservation and new types of infrastructure facilities, according to sources at the China Securities Regulatory Commission (CSRC). China currently allows REITs listings of infrastructure projects such as highways, industrial parks, sewage treatment, storage and logistics, clean energy, and affordable rental housing. Since China’s first batch of nine REITs went public in 2020, its REITs market has grown rapidly. By the end of October 2022, a total of 23 REITs had been approved for issuance and 20 listed on the Shanghai and Shenzhen bourses. The 20 REITs that have been listed have raised a total of 61,8 billion yuan (about US$8,7 billion).
China’s New Civil Servants Sworn In
Approximately 195 000 newly recruited Chinese civil servants have pledged allegiance to the Constitution and completed national training sessions. The training sessions were held by the Organisation Department of the Communist Party of China (CPC) Central Committee and highlighted the implementation of the guiding principles of the 20th National Congress of the CPC, and reinforced the political, theoretical, conduct and integrity training. The training sessions featured both video courses and offline seminars and were taught by relevant central ministry and department officials and experts.
*Manyikai Kangai helps African businesses realise the full potential of the vast opportunities China presents. He has over 15 years of experience facilitating and advising on China-Africa trade and investment deals. Feedback +27743487997/www.muvambi-sa.co.za
