CBN丨China's industrial profits begin to rise in June

Hi everyone. I’m Stephanie LI.

大家好，我是主持人李莹亮。

重点提要 

-Chinese industrial enterprises’ profits in H1 2022 hit 4.27 trillion yuan, up 1% year-on-year;

-IMF lowers global economy growth forecast to 3.2%.

中国经济要闻

Profits at China's industrial firms bounced back to growth in June, bolstered by the resumption of activity in major manufacturing hubs.

Profits in June grew 0.8 percent from a year earlier, rebounding from a 6.5 percent decline in May, helped by a recovery in industrial and supply chains from disruptions caused by the pandemic, according to data released by the National Bureau of Statistics (NBS) on Wednesday.

Industrial firms saw their combined profits rise 1 percent to 4.27 trillion yuan in January-June from the same period a year earlier. That matched the 1 percent growth pace in the first five months, the data showed. 

Among the 41 industries surveyed, 15 sectors saw double-digit growth in June, and 21 sectors recorded a year-on-year increase in profits.

Notably, profits of auto producers jumped 47.7 percent as production resumed in the major auto manufacturing hubs of Shanghai and northeastern Jilin province, with the sector being the biggest driver of the profit rebound among industrial firms. 

NBS data showed profits at equipment manufacturing grew 4.1 percent in June after a 9 percent decline in May, contributing 4 percentage points to the profits growth in June.

The profit rebound was encouraging, but profit growth remained weak and the external environment was becoming more complicated and grim, NBS senior statistician Zhu Hong said in a statement. "While costs keep rising, some firms are facing hardship in production and operation as well as potential losses.”

For instance, foreign industrial businesses saw profits drop by 13.9 percent during the January-to-June period from a year earlier, only slightly better than a decrease of 16.1 percent recorded in the first five months. 

Profits at private firms fell by 3.3 percent in the first half of the year, a larger margin than the decline in the January-to-May period. 

In the next step, the country will continue to implement existing policies on stabilising the industrial economy. More efforts will also be made to expand effective investment, boost consumption, reduce taxes and fees, ease burdens on enterprises and create more favourable conditions for the steady recovery of the industrial economy.  

7月27日，国家统计局公布数据显示，1—6月份，全国规模以上工业企业利润同比增长1.0%。6月份当月，企业利润恢复加快，由连续两个月下降转为正增长。

6月份，全国规上工业企业利润同比增长0.8%，利润增速较上月回升7.3个百分点，呈加速恢复态势。

二季度以来，受部分地区疫情多发散发影响，工业企业效益承压明显，4月份工业企业利润由增转降且降幅较大。

国家统计局官员朱虹表示，随着疫情得到有效控制，6月份，产业链供应链进一步恢复，工业企业效益明显改善。

上半年，全国规模以上工业企业实现利润总额42702.2亿元，同比增长1.0%。

此外，6月工业企业利润行业结构也有所改善，制造业利润占比提高，上下游利润分化有所缓解。其中，汽车制造业因上海、吉林等汽车主产地加快复工复产，利润大幅增长。

但是，部分企业生产经营仍面临较多困难。上半年，规模以上工业企业中，外商及港澳台商投资企业实现利润总额9814.1亿元，下降13.9%；私营企业实现利润总额11885.7亿元，下降3.3%。

朱虹表示，总体看，工业企业利润恢复加快，利润行业结构出现积极变化。但也要看到，外部环境更趋复杂严峻，工业企业利润增速仍处低位，部分企业生产经营仍面临较多困难。

下阶段，要坚决贯彻党中央、国务院决策部署，继续推动稳定工业经济一揽子政策措施落地见效，不断扩大有效投资、提振消费需求，加大减税降费、助企纾困力度，为工业经济持续稳定恢复创造更多有利条件。

The International Monetary Fund (IMF) on Tuesday slashed the global growth forecast for 2022 to 3.2 percent, down by 0.4 percentage point from the April projection, according to its newly released update to the World Economic Outlook (WEO). Global inflation has been revised up due to food and energy prices and is anticipated to reach 6.6 percent in advanced economies and 9.5 percent in emerging markets and developing economies this year, according to the  update.

IMF下调世界经济增长预期：7月26日，国际货币基金组织(IMF)发布《世界经济展望报告》更新内容，将2022年世界经济增长预期下调至3.2%。这是IMF继4月下调世界经济增长预期之后再次下调。报告还显示，尽管经济活动放缓，但全球通胀预测值被上调，部分原因是粮食和能源价格上涨。IMF预计，今年发达经济体的通胀率将达到6.6%，新兴市场和发展中经济体的通胀率将达9.5%。

区域观察

Shanghai has announced its first relief policy for more than 500,000 troubled business owners, who account for 15.7 percent of the city's market entities, to reduce their production and operation costs and improve their business environment. Local authorities announced 34 measures to reduce the companies' costs, including tax incentives, rental reductions and utility subsidies, as well as enhanced credit allocation for SMEs. 

上海50万个体户迎纾困“礼包”：26日上海市举行《上海市扶持个体工商户健康发展的若干政策措施》新闻通气会，会议透露，上海多部门“联手”创新，针对个体工商户在租金、税费、社保、融资、登记等方面的“痛点”“堵点”，集中制定出台34条支持举措，惠及50万余个体工商户。

新使命，大未来

As the US' push for "decoupling" with China brings about monumental political risks for US-listed Chinese mainland firms, Hong Kong hopes to adjust some stock market rules to make it more convenient for the return of these companies, Hong Kong’s Financial Secretary Paul Chan Mo-po said on Tuesday. Chan said that more than 20 US-listed mainland companies are returning to Hong Kong, accounting for over 70 percent of the total capitalization of Chinese mainland firms trading in the US. 

香港财政司司长回应中概股回流：香港财政司司长陈茂波日前表示，虽然回归的中概股企业仅20多家，但它们占据在美上市中概股总市值的70%以上。目前，特区政府正筹备更多新措施，为中概股回港上市提供便利。陈茂波透露，特区政府正在与内地相关部门进行沟通，希望将在港上市的中概股纳入“南向通”标的。

Sustainable financial investment in the Greater Bay Area is expected to reach $450 billion by 2030, benefiting from the dramatic increase in two-way capital flows between China and other countries, rapid development of technological innovation and the focus on sustainability, said Nicolas Aguzin, chief executive of Hong Kong Exchanges and Clearing at a Tuesday capital markets seminar. 

大湾区2030年可持续融资有望达4500亿美元：7月26日，大湾区资本市场论坛在线上举行。香港交易所行政总裁欧冠升表示，大湾区作为中国最具活力的地区之一，将受益于一些大趋势。欧冠升认为，可持续性发展是大湾区必须关注的大趋势，到2030年，大湾区的可持续金融投资有望达到4500亿美元。

产业及公司新闻

The Civil Aviation Administration of China on Tuesday gave the approval certificate to Aviation Industry Corp of China's Harbin Aircraft Industry for the AC352, also known as the Z-15, marking the success of China’s first civil helicopter's research, development and test flights, which is ready for mass production and delivery to users, and clearing the commercial operations. 

国产中型直升机研制成功：7月26日，中国民用航空局向中国航空工业集团有限公司下属哈尔滨飞机工业集团有限责任公司颁发了先进中型多用途民用直升机Z15（AC352）型直升机型号合格证，标志着该型直升机研制工作取得圆满成功，具备了进入国内民用市场的条件，将填补国产民用中型直升机领域空白。

Shares of Chinese developers extended a rally on the news that the China Real Estate Association was holding meetings in Hangzhou to address the property sector's liquidity issues. State-owned asset management firm China Cinda Asset Management was said to be among the invitees. The conference was reportedly being held Tuesday and Wednesday with the China Real Estate Association saying that discussions would be on financing programs for embattled developers.

中房协召开纾困大会：7月26日，中国房地产协会与浙江省房地产业协会在杭州联合主办“房地产纾困项目与金融机构对接商洽会。来自长三角地区的多家房企，以及信达、中金、浙商银行等金融机构参与了此次会议。会上，纾困项目企业代表与金融机构、有意兼并重组、合作发展解决项目困难的企业展开对接交流。受此影响，当日房地产板块整体走高，截至收盘房地产板块整体涨幅4.13%，板块中多只股票涨停。

Chinese retailer MINISO has claimed Wednesday that the short seller report released by Blue Orca Capital recently was misleading, after the investment firm alleged that MINISO lied about its core business model. The company is reviewing the allegations and considering the appropriate course of action to protect the interests of all shareholders, according to its filing to the Hong Kong Stock Exchange.

名创优品回应做空报告：7月27日，名创优品在港交所发布公告，称做空机构Blue Orca Capital一份做空报告的指控毫无依据，且包含有关公司资料的误导性结论及诠释。公司董事会正在审查该指控，并考虑采取适当行动以保护所有股东的利益。

The China Basketball Association said Wednesday that it is going after 406 million yuan in compensation from video-sharing platform Bilibili for alleged copyright infringement, making it the largest intellectual property case in China's sports industry. The CBA is suing Bilibili for its on-demand provision of the 2019-2020 basketball season without permission, according to a document recently released by the Beijing High People's Court. 

中篮联诉B站侵犯CBA联赛版权：中篮联（北京）体育有限公司相关人士27日证实，中篮联以哔哩哔哩网站侵犯著作权和不正当竞争侵权为由提起的诉讼正在进行中，共同经营哔哩哔哩网站的上海宽娱数码科技有限公司和上海幻电信息科技有限公司被索赔4亿余元人民币。

Chinese artificial intelligence giant SenseTime and vehicle manufacturer Guangdong Automobile Group are linking arms on smart autos and the first models will start to become available as early as this year， media reported Tuesday. The two parties will cooperate on research and application in fields such as intelligent driving, automobile metaverse, AI toolchain and other areas, SenseTime said. 

商汤与广汽达成战略合作：近日，广汽集团与商汤科技签署了战略合作框架协议。双方将发挥各自优势、实现资源互补，结合广汽集团在汽车整车生产和研发技术的能力，以及商汤科技在人工智能技术的优势，在智能驾驶、智能车舱、智能网联、汽车元宇宙、AI工具链、超算中心等领域深入挖掘合作机会，开展全面业务合作。

China's competitive gaming industry, also known as esports, will lack at least two million talents over the next three to four years due to accelerating development, Hou Miao, deputy general manager of Tencent Interactive Entertainment Group's marketing department, said in an interview on Tuesday. Tencent Esports has joined hands with some educational institutions on textbooks and provided training facilities to partners, Hou added.

腾讯互娱指电竞人才缺口200万：26日，腾讯互娱市场部副总经理侯淼在采访中表示，按照电竞行业目前的发展速度，未来三四年时间内的人才缺口将达到200万，甚至更多。此处的电竞人才是指整个电竞行业人才。侯淼称，目前腾讯电竞已与部分教育机构进行教材合作，授权腾讯教育合作伙伴进行培训基地的试点。

财报速递

Shares in Chinese contract drugmaker WuXi Apptec Co Ltd dropped over 5 percent today despite posting a stellar first-half result late Tuesday. Income for the first six months was about 17.7 billion yuan, showing an increase of 68.5 percent from a year earlier. Net profit jumped 73.3 percent to hit 4.6 billion yuan, the firm said. 

药明康德上半年大赚46亿：26日晚间，CRO龙头药明康披露半年报，据财报显示，今年上半年，药明康德实现营业收入177.56亿元，同比增长68.52%；归母净利润46.36亿元，同比增长73.29%；基本每股收益为1.59元。期内盈利金额已创出同期历史最高水平。尽管业绩亮丽，药明康德股价表现仍不理想，27日药明康德A股开盘随即翻绿，收盘跌超5%。

金融市场消息

China will launch a pilot program to streamline the panda bond registration and issuance mechanism in a bid to further open the country's bond market, according to a notice released by the National Association of Financial Market Institutional Investors on Tuesday. As part of the pilot program, which will take effect on Aug. 1, the issuer base for universal registration will be expanded. The association will also introduce a frequent issuer program to facilitate issuances by overseas entities and reduce repetitive disclosure. 

熊猫债机制持续优化：7月26日，中国银行间市场交易商协会发布《关于开展熊猫债注册发行机制优化试点的通知》，拟开展熊猫债注册发行机制优化试点，扩大统一注册模式适用范围，统一非金融企业熊猫债募集说明书表格，国际开发机构和外国政府类机构对原债券进行增发，试点“常发行计划”。

The cost to borrow in China's overnight repo market once fell below 1 percent on Wednesday, down 94 basis points this month, showing that excess cash is piling up in the financial system instead of being funneled to the real economy.

隔夜回购利率一度跌破1％：尽管央行在公开市场小额净回笼，但资金面依旧持续宽松，银行间市场存款类机构隔夜质押式回购利率（DR001）甚至跌破1%。7月27日，中国货币网数据显示，DR001加权平均利率早盘即跌破1%，创下2021年1月8日以来新低。

股市收盘情况

Chinese stocks closed slightly lower on Wednesday as caution kicked in ahead of the U.S. Federal Reserve’s policy meeting later in the day. By the market close, the Shanghai Composite slipped 0.05 percent and the Shenzhen Component closed down 0.07 percent. In Hong Kong, the benchmark Hang Seng ended 1.13 percent lower, dragged by mainland developers, while the TECH Index fell 1.3 percent.

周三A股震荡整理，沪指、深成指小幅收跌，创业板指微涨。截止收盘，沪指跌0.05%，深成指跌0.07%，创业板指涨0.03%。板块方面，电机、燃气、光伏设备、汽车零部件、船舶制造等涨幅居前，旅游酒店、房地产服务、酿酒行业、保险、房地产开发等板块跌幅靠前。港股恒生指数收跌1.13%，内房股、物业股走弱，恒生科技指数收跌1.3%。

Biz Word of the Day

财经词汇划重点

The overnight rate is the interest rate at which a depository institution (generally banks) lends or borrows funds from another depository institution in the overnight market. 

隔夜利率是指当天起息第二天归还的银行同业拆放贷款的利率。隔夜拆借利率是反映中央银行货币政策指向的指标，也是利率体系中的最基础(或最低)的利率。