CBN丨China's industrial profits post double-digit gains in November

Hi everyone. I’m Stephanie LI.Coming up on today’s program.· China's industrial profits extend gains for 4th month in November;· China appoints new deputy head of central bank and other senior economic and financial officials.Here’s what you need to know about China in the past 24 hours Profits at China's industrial firms extended gains for a fourth consecutive month in November, adding to signs of improvement.Data from the National Bureau of Statistics showed on Wednesday that large industrial enterprises saw their total profits increase 29.5 percent year-on-year in November after a 2.7 percent rise in October.For the January-November period, industrial firms' profits fell 4.4 percent year-on-year to 6.98 trillion yuan, narrowing from the 7.8 percent drop in the first ten months, the bureau said.As the effects of macroeconomic policies continue to kick in, domestic demand is gradually recovering, industrial production is seeing an accelerating rebound, and the profitability of industrial enterprises is experiencing sustained improvement, NBS statistician Yu Weining explained in a statement.Among the 41 major industrial sectors surveyed, 33 saw improvements in their profits during the first 11 months. During the period, profits recorded by industrial firms that offer supplies of electricity, heat, gas and water grew by 47.3 percent year-on-year, up from the 40 percent rise in the first 10 months.Meanwhile, profits recorded by mining firms and manufacturing companies shrank 18.3 percent and 4.7 percent, respectively, compared to the 19.7 percent and 8.5 percent contraction in the first 10 months. Profits at equipment manufacturing enterprises rose by 2.8 percent on a yearly basis, up from the 1.1 percent rise in the first 10 months, NBS data showed.During the January-November period, state-owned firms achieved total profits of 2.24 trillion yuan, down 6.2 percent year-on-year, while private enterprises recorded total profits of 2 trillion yuan, marking a 1.6 percent increase over the same period, and foreign firms booked an 8.7 percent decline.The NBS data also show that operating income of major industrial firms increased by 1 percent year-on-year in the first 11 months, accelerating by 0.7 percentage points compared to the period from January to October due to a 6.1-percent growth in November. In addition, profit growth was observed in nearly 60 percent of industries, and 80 percent industries experienced a rebound in profit growth rates.The recovery of the industrial sector is now more extensive, from the improvement of accounts receivable and enterprise turnover, reflecting the recovery of market demand and the improvement of enterprise business conditions, analysts noted.· China's State Council on Tuesday appointed several senior officials at top economic and financial ministries. Lu Lei, former deputy administrator of the State Administration of Foreign Exchange (SAFE), was appointed as the new deputy governor of the PBOC. Lu held various posts at the central bank, including the head of its financial stability department between 2016 and 2017, before becoming the deputy head of SAFE. Fu Wanjun, former vice chairman and president of the Agricultural Bank of China, was appointed as deputy head of the National Administration of Financial Regulation. Liu Sushe, a former vice chairman of the people's government of Xinjiang Uygur Autonomous Region, was named deputy head of the National Development and Reform Commission (NDRC). Liu was the head of NDRC's fixed-asset investment department in 2017.  · A total of 19,834 certificates of origin involving USD568 million were issued under the Regional Comprehensive Economic Partnership (RCEP) free trade agreement by Chinese authorities in November, marking a year-on-year growth rate of 20.8 percent, data from the China Council for the Promotion of International Trade showed on Wednesday. The certificates are expected to reduce tariffs by USD9 million for Chinese products in RCEP importing countries, the council said.Moving on to regional highlights· Four Chinese provinces have announced plans to issue local government bonds in the first quarter of 2024 to bolster economy,  with East China's Jiangsu, North China's Hebei and Shanxi as well as South China's Hainan provinces reportedly planning to issue more than 220 billion yuan of bonds in the first quarter. Jiangsu Province plans to issue bonds worth more than 140 billion yuan. Hainan Province plans to issue bonds worth 19.69 billion yuan in the first quarter, with 6 billion planned for January alone, according to information on financial portal chinabond.com.· The cargo throughput processed by the main ports along the Yangtze River in 2023 will rise 8.1 percent year-on-year to reach 3.88 billion tons, a new record, the Ministry of Transport said on Tuesday. Specifically, cargo throughput via the ship-lock at the giant Three Gorges Dam, the world's largest hydropower project, is estimated to reach 170 million tons, up 7.6 percent, and the carrying capacity of pilot vessels will be up 7.5 percent to reach 450 million tons. Both figures set new records. Tourism along the country's longest river is also booming, with 1.38 million inter-provincial trips expected to be made this year, up more than 25 percent compared with pre-pandemic levels.· China is expected to put more than 2,500 kilometers of high-speed rail (HSR) lines into operation this year, the highest figure in the past four years, according to the latest official data. Three new HSR lines including the one from Chengdu to Yibin in Sichuan province, as well as super-high-speed railway hub Baiyun Station in Guangzhou, started operation on Tuesday. Two other high-speed lines opened today, including one connecting the port city of Fangchenggang and China-Vietnam border city Dongxing in South China’s Guangxi province. With two new HSR lines in 2023, including the Guangzhou-Shanwei line, which commenced operations on Sep 26, and the Shantou-Shanwei line that became operational yesterday, the total mileage of HSR lines in Guangdong has now reached 3,130 kilometers, surpassing the 3,000-kilometer threshold ahead of any other province in China.· Shanxi province in northern China is offering foreign-backed businesses which meet certain criteria up to 10 million yuan in paybacks, as the inland region looks for ways to lure more overseas investment. Businesses with foreign investment of over USD10 million will receive 5 percent of the actual funds used as a reward, according to the new policy, while multinationals with assets exceeding USD50 million will be reimbursed 10 percent of the actual funds used if they set up their regional headquarters in the province. Both incentives are capped at 10 million yuan per company. In the first 10 months, foreign investment in the province surged 41 percent from a year earlier to USD950 million.  Greater Bay Area, Greater Future· The daily traffic flow for the Zhuhai Port of the Hong Kong-Zhuhai-Macao Bridge reached a milestone on Monday, as the number of vehicles crossing the boundary exceeded 16,000, setting a new record. The traffic peak was primarily due to the public holidays in Hong Kong and Macao. From Saturday to Monday, Zhuhai Port recorded 308,000 passenger trips with 45,500 vehicles inspected at the port. Next on industry and company news· Aito, the electric vehicle brand of Chinese telecom giant Huawei Technologies and carmaker Seres Group, debuted its most expensive sports utility vehicle model, priced from 469,800 to 569,800 yuan. The Aito M9, a large-sized SUV, hit the market yesterday. Its extended-range edition has a range of 1,402 kilometers, while allows a pure electric range of 275 km. The pure-electric version carries a ternary lithium battery of 97.7 kilowatt-hours made by Chinese battery giant CATL. Orders for the Aito M9 exceeded 54,000 units, with deliveries scheduled for Feb. 26, Richard Yu, chief executive of Huawei's consumer business group and chairman of the intelligent automotive solutions business unit, said at the model's launch event.  · AstraZeneca agreed to acquire Chinese cell therapy developer Gracell Biotechnologies for as much as USD1.2 billion as the British drug giant bolsters its bets on medical innovation in China. AstraZeneca entered into a definitive agreement to acquire Gracell Biotech as early as in the first quarter of next year to further its cell therapy ambition, the company said in a statement yesterday. Under the agreement, Astra will acquire Gracell for USD2 a share, amounting to an upfront cash payment of USD1 billion. An additional share-purchase contingent on reaching certain regulatory milestones would eventually push the deal value to USD1.2 billion.· McDonald's China embarked on its third price hike within the past two years today as the fast-food chain added 3 percent to menu items on average, blaming rising operating costs. Certain product prices were increased by 0.5 yuan to 2 yuan, per the mobile application of the burger chain. In the third quarter of this year, McDonald's China saw net profit jump by 17 percent to USD2.3 billion, whereas revenue increased by 14 percent. Wrapping up with a quick look at the stock market· Chinese stocks rose on Wednesday with the benchmark Shanghai Composite up 0.5 percent and the Shenzhen Component gaining 0.4 percent. Hong Kong’s Hang Seng Index also finished up 1.7 percent and the Tech Index jumped 2.6 percent.Biz Word of the Day· Cell therapy is a therapy in which viable cells are injected, grafted or implanted into a patient in order to effectuate a medicinal effect, for example, by transplanting T-cells capable of fighting cancer cells via cell-mediated immunity in the course of immunotherapy, or grafting stem cells to regenerate diseased tissues.