CBN丨PBOC to step up prudent monetary policy

Hi everyone. I’m Stephanie LI.

大家好，我是主持人李莹亮。

Coming up on today’s program.

重点提要 

-China’s central bank said inflation may exceed 3% in some months, pledging to avoid massive stimulus and excessive money printing;

-Sinopec discovers rich flows of natural gas and crude oil in Xinjiang.

Here’s what you need to know about China in the past 24 hours 

中国经济要闻

The People's Bank of China (PBOC), the country's central bank, vowed on Wednesday to ramp up the implementation of prudent monetary policy and not to over-issue money.

In its latest quarterly monetary policy report, the PBOC said it will both support economic growth and ensure stable prices. At the same time, it will provide stronger and higher-quality support to the real economy. 

“Structural inflation pressure may increase in the short term, and the pressure of imported inflation remains,” the PBOC said, adding that consumer inflation will likely exceed 3 percent in some months during the second half of the year. 

However, China will likely achieve the target of keeping full-year inflation around 3 percent in 2022, thanks to measures taken to ensure grain and energy supply as well as a prudent monetary policy, and it will follow domestic and overseas inflation trends and deal with them appropriately, it said.

The PBOC said it will continue to maintain reasonable and sufficient liquidity, not engage in "flood irrigation" or excessive money supply, while providing reasonable increases in money supply and aggregate social financing to strive for the best results in full-year economic growth.

In a special section in the report, the PBOC highlighted improvement in the structure of outstanding loans in recent years, with the share of lending to small business increasing while that of property loans declined. 

The central bank said it’s natural that credit growth may moderate as the economy goes through a transition period where urbanization and the property sector slows, adding that financial support to the economy will continue to be strong as new sectors such as green investment begin to accelerate. 

In addition, it will promote China's financial reform and opening-up, further simplify the procedures for foreign investors to enter the Chinese market, enrich investable asset classes, improve data disclosure, and continue to perfect the business environment.

8月10日晚间，央行发布《2022年第二季度中国货币政策执行报告》（以下简称报告），对部分近期热点事件做出明确判断。

一是物价方面。央行认为，两个因素叠加驱动通胀中枢阶段性抬升：一是疫情受控后未来消费复苏回暖，可能推动前期PPI上涨向CPI的传导加快。二是我国对石油、天然气等能源品的进口依赖度较高，能源进口成本攀升最终将体现为国内交通出行、相关产业链终端消费品等更广范围的价格上涨。

“综合研判，预计今年下半年我国CPI运行中枢较上半年1.7%的水平将有所抬升，一些月份涨幅可能阶段性突破3%，结构性通胀压力加大。”央行称。

二是信贷走势方面。央行数据显示，基建投资和房地产等资金密集型领域信贷需求趋势性转弱，基建贷款比重由2010年的25%降至2019 年以来的19%左右，房地产贷款比重也由2019年峰值的 29%回落至 2022年6月末的25.7%。

“随着城镇化进程边际趋缓和房地产长周期趋势演变，过去量级较大的基建贷款和房地产贷款需求减弱，而普惠小微、高技术制造业等贷款体量仍相对较小，加上直接融资呈上升趋势，信贷增速在新旧动能换档和融资结构调整过程中可能会有所回落。”央行称。

不过央行指出，中长期看，我国信贷增长将更加重视总量稳、结构优，绿色投资、“两新一重”等新动能在一定程度上可为信贷增长提供支撑，加上信贷资源继续向重点领域和薄弱环节倾斜，金融对实体经济新增长点的支持质量和适配性将稳步提升。

三是逆回购操作。7月来逆回购规模频繁变化，100亿、30亿、120亿、70亿、30亿、50亿、20亿，市场都在猜测央行的用意。央行此次解读称，7月份以来，一级交易商的投标量继续减少，人民银行相应进一步降低逆回购操作量，但仍充分满足了投标机构的需求。央行公开市场操作是短期流动性调节工具，操作量根据流动性供需变化灵活调整是正常现象。

央行表示，下一阶段将加大稳健货币政策实施力度，发挥好货币政策工具的总量和结构双重功能，主动应对，提振信心，搞好跨周期调节，兼顾短期和长期、 经济增长和物价稳定、内部均衡和外部均衡，坚持不搞“大水漫灌”，不超发货币，为实体经济提供更有力、更高质量的支持。

Moving on to regional highlights

区域观察

Shanxi has made continuous advances in high-quality development over the past decade, according to a press briefing held Wednesday. Shanxi's accumulated coal output over the past 10 years reached nearly 10 billion tons, accounting for about a quarter of China's total. Shanxi’s coal output is expected to reach 1.3 billion tons in 2022. While ensuring China's energy supply, Shanxi has strived to push forward the transition of its energy supply structure by accelerating the coordinated development of new energy and digitalization of its coal sector. 

山西10年累计产煤百亿吨：山西省委书记林武在“中国这十年·山西”主题新闻发布会上介绍，10年来，山西累计产煤近100亿吨，约占全国产量的四分之一。去年煤炭增量占全国增量的三分之二，今年预计产煤13亿吨。同时，山西深化能源革命综合改革试点，加快推进煤炭和煤电一体化、煤电和新能源一体化、煤炭和煤化工一体化、煤炭产业和数字经济一体化，在保障国家能源供应安全中实现自身转型发展。

Next on industry and company news

产业及公司新闻

Chinese telecom operators have accumulatively invested 401.6 billion yuan in 5G, according to the 2022 World 5G Convention that kicked off Wednesday in Harbin. China has some 1.85 million 5G base stations and more than 450 million 5G end users, both accounting for over 60 percent of the global total, the conference said. Also, 6G is crucial to a new round of technological innovation and industrial revolution, Zhang Ping, an academician of the Chinese Academy of Engineering, said on the sidelines of the convention. 

中国5G投资超4000亿元：10日，2022世界5G大会在哈尔滨召开。会上提到，我国5G网络基站数量达185.4万个，终端用户超过4.5亿户，均占全球60%以上，全国运营商5G投资超过4000亿元。同时，6G也成为今年大会热词之一。中国工程院院士张平表示，6G对新一轮技术创新和产业变革至关重要。6G将全面支撑全社会的数字化转型，实现智联万物和数字世界。

China's largest oil refiner Sinopec has acquired crude oil and natural gas from a newly-drilled oil reserve about 8,000 meters deep in the Tarim Basin of Xinjiang. The high-yield reserve in Sinopec's Shunbei oil and gas field is estimated to be capable of producing 244 tons of crude oil and 970,000 cubic meters of natural gas each day, according to the chairman of Sinopec Wednesday. 

我国成功开发超深油气田：中国石化10日宣布，公司所属的顺北油气田在地下8000米深度试获高产工业油气流，折算日产油气当量达到1017吨。中国石化董事长马永生说，顺北油气田位于塔里木盆地，此次试生产超千吨的油气井为顺北803斜井，折算日产原油244吨、天然气97万立方米。

China’s Biren Technology has launched its first graphics processing unit chip which boasts a peak hash rate higher than US chip giant Nvidia's products on Tuesday. The BR100 series has 7 nanometer chips with 16-bit floating point and 8-bit fixed-point computer power that run reach maximum speeds of over 1000 T and 2000 T respectively. 

壁仞科技芯片破全球算力纪录：9日，国产芯片迎来重大突破，壁仞科技在上海发布首款通用GPU芯片BR100，创出全球算力纪录，16位浮点算力达到1000T以上、8位定点算力达到2000T以上，单芯片峰值算力达到PFLOPS级别。

SoftBank Group on Wednesday said it will book an estimated gain of about 230 billion yuan on settling prepaid forward contracts using shares in Alibaba Group, reducing its stake to 14.6 percent from 23.7 percent. 

软银减持阿里套现2300亿：10日，阿里巴巴大股东软银集团宣布，董事会同意结算至多2.42亿份阿里巴巴ADR(“美国存托股份”)的远期合约，预计交易总收益达4.6万亿日元（约合340亿美元，折合人民币2300亿元），结算完成后，软银集团持有的阿里巴巴集团股份占比将从23.7%降至约14.6%。

Kuaishou Technology Co. Ltd unveiled the new video cloud brand StreamLake and a self-developed intelligent video processing chip Wednesday. The launch of StreamLake, the first enterprise-facing product from Kuaishou, marks the short-video platform operator’s official entry into the cloud services market and a shift from its original consumer-focused businesses. 

快手发布视频云品牌：10日，短视频与直播平台快手正式发布视频云品牌StreamLake，正式进军B端业务领域。快手StreamLake专注于成为视频化升级助推器，将沉淀多年的音视频和AI等关键技术能力以产品化的形式对外开放，提供一站式音视频+AI解决方案。

Yutong Bus’s parent company signed a 10-year agreement with battery giant CATL to jointly develop technologies for batteries used in buses, trucks, and tractors. Yutong Group and CATL will also develop new materials and technology systems for the battery tech projects and work together on exporting commercial vehicles, CATL said Tuesday.  

宁德时代与宇通深化合作：9日，宁德时代新能源科技股份有限公司与宇通客车股份有限公在河南郑州签署十年战略合作框架协议。根据协议，宁德时代和宇通在商用车领域共享优势资源，共同制定商用车电池技术标准，持续引领商用车领域技术发展,携手走出国门，实现“车电联合出海”的战略目标。

Earnings reports express

财报速递

Lenovo on Wednesday announced strong first quarter results for the Group, improving both revenue and profitability for the ninth consecutive quarter. First quarter net income grew 11 percent year-on-year to US$516 million. Revenue grew to US$17 billion, up 5 percent from the same period last year. The Group remained committed to doubling investments in R&D, with spending up 10 percent year on year and headcount increasing 29 percent. 

联想连续九季度营收利润双增长：8月10日消息，联想集团公布第一季度业绩报告，公司第一季度营收169.6亿美元，同比持平；第一季度净利润5.16亿美元，同比增长11%，创第一季度历史新高。此外，联想研发投入翻番计划稳步推进，研发投入同比增长10%，研发人员数量增加了29%。

Switching gears to financial news

金融市场消息

The Ministry of Finance issued this year's second batch of RMB treasury bonds worthing 5 billion yuan in the Hong Kong SAR on Wednesday, including two-year bonds worth 4 billion yuan and ten-year bonds worth 1 billion yuan. The issuance was well received by institutional investors with the total bid amount reaching 21.79 billion yuan, 4.36 times the amount in circulation.

财政部在港发50亿国债：10日，财政部表示，在香港特别行政区面向机构投资者招标发行2022年第二期50亿元人民币国债。第二期50亿元人民币国债吸引机构投资者积极参与，认购总额217.9亿元，认购倍数4.36倍，发行利率低于香港离岸二级市场国债收益率10至15个基点。 

Shares of Longfor Group Holdings Ltd. rebounded 5.7 percent on Thursday in Hong Kong, after the Chinese property developer's shares dropped 16.4 percent on rumours that it faced problems clearing the amount. In a call with investors Wednesday evening, Longfor's management denied that it had defaulted on any commercial bills and aimed to repay 700 million yuan worth of outstanding commercial bills by year-end. The company's CEO also said it plans to repay some debts due in 2023 in the fourth quarter.

龙湖回应股价大跌：8月11日，港股龙湖集团高开，最高涨11%，收涨5.7%。10日晚间，龙湖集团管理层召开投资者电话会议。公司董事长吴亚军称，股价大跌的主要原因是“市场的惊慌导致的，企业根本没出什么状况，还是正常运作和运行”。龙湖集团CFO赵轶在电话会上称，相关商票拒付信息是“完全的谣言”，为了控制风险，公司从2021年起已完全不做商票。赵轶称，当前，龙湖集团整体商票余额大约为7亿元，全部会在年底之前兑付。10日晚，上海票据交易所发布公告称龙湖集团无商票违约和拒付记录，相关谣传并不属实。

Wrapping up with a quick look at the stock market

股市收盘情况

Chinese stocks on Thursday tracked overnight Wall Street gains on cooling inflation. By the close, the benchmark Shanghai Composite gained 1.6 percent and the Shenzhen Component closed 2.05 percent higher. The Hang Seng Index added 2.4 percent and the TECH Index rose 3.67 percent.

周四A股三大指数高开高走。截至今日收盘，沪指涨1.60%，深成指涨2.05%，创业板涨2.37%。 盘面上，MicroLED、Chiplet、消费电子板块涨幅居前，贵金属板块跌幅居前。港股恒生指数涨2.4% ，恒生科技股指数涨3.67% 。

Biz Word of the Day

财经词汇划重点

The secondary market, also called the aftermarket and follow on public offering, is the financial market in which previously issued financial instruments such as stock, bonds, options, and futures are bought and sold.

二级市场指在证券发行后各种证券在不同的投资者之间买卖流通所形成的市场，又称流通市场或次级市场。比如上海证券交易所和深圳证券交易所就属于二级市场。