The Sunday Mail
Manyika Kangai
China has enough policy space to handle challenges
China still has sufficient policy space to deal with greater-than-expected challenges and changes, according to a senior official of the People’s Bank of China (PBOC) on Wednesday. The central bank will continue to implement a prudent monetary policy in a targeted way and strengthen counter-cyclical adjustments and policy reserves. The central bank will use a combination of policy tools to keep liquidity at a reasonable and sufficient level, and guide financing costs of the real economy downward. Policies will also be directed towards guarding against the risk of exchange rate overshooting and guiding financial institutions to help deal with local government debt risks.
China’s loan prime rates remain unchanged
China’s one-year Loan Prime Rate (LPR), a market-based benchmark lending rate, came in at 3,45 percent, unchanged from the previous month, according to the National Interbank Funding Centre. The over-five-year LPR, on which many lenders base their mortgage rates, also remained unchanged from the previous reading of 4,2 percent. Last month, the one-year rate went down by 10 basis points to 3,45 percent, while the over-five-year rate stood unchanged at 4,2 percent. The monthly data is a pricing reference rate for banks, based on rates of the central bank’s open market operations, especially the medium-term lending facility rate.
China’s R&D spending
China’s total expenditure on research and development (R&D) exceeded 3 trillion yuan (about US$418,2 billion) in 2022, up 10,1 percent year-on-year, according to the National Bureau of Statistics on Monday. China’s R&D spending jumped 7,7 percent last year at constant prices, higher than the 7-percent R&D annual growth target set for the 14th Five-Year Plan period (2021-2025). China’s total spending on R&D accounted for 2,54 percent of its Gross Domestic Product (GDP) last year, up 0,11 percentage points from the previous year. R&D spending of enterprises contributed to 84 percent of the country’s R&D growth, up 4,6 percentage points from a year earlier. Investment in basic research continued to grow last year, topping 200 billion yuan (about US$27,88 billion) and accounting for 6,57 percent of the total R&D spending.
China boosts development of intelligent mines
China has taken a series of measures to boost the development of intelligent mines amid efforts to improve production safety, according to the National Mine Safety Administration. There are 730 coal mines in China that are equipped with intelligent working faces, and the total number of the working faces has reached 1 400. The country has pledged to promote the sector’s development further, with incentives including improved regulations, standards and policy support. China will also encourage universities, research institutes, mines, and sci-tech enterprises to work together to carry out research, and to promote the application of unmanned driving and new energy technologies in open-pit mines.
Ant integrates new Asian e-wallets
Ant Group officially welcomed seven new leading e-wallets and payment apps from Asia to the “Alipay+-in-China” (A+China) Programme, according to a press release by Ant Group on Tuesday. Users of mPay (Macao SAR, China), Hipay (Mongolia), Changi Pay (Singapore), OCBC (Singapore), Naver Pay (South Korea), Toss Pay (South Korea) and TrueMoney (Thailand) will be able to use their own payment apps in the Chinese mainland wherever Alipay works. The new additions bring the total number of overseas e-wallets accepted in the Chinese mainland to 10. AlipayHK (Hong Kong SAR, China), Touch ‘n Go eWallet (Malaysia), and Kakao Pay (South Korea) piloted the programme in late 2022. In total, these payment platforms reach a population of over 175 million in Southeast and East Asia.
*Manyika Kangai has over 17 years of experience facilitating and advising on China-Africa trade and investment deals. Feedback Muvambi SA (Pty) Ltd/ +27743487997/ www.muvambi-sa.co.za
