Xinhua Financial Morning News: February 18
• Han Zheng: Explore the establishment of a unified national food safety information traceability platform.The project of “Counting the East and counting the West” was officially launched.National Development and Reform Commission (NDRC) : China will study and formulate a plan to expand the middle-income group.Domestic gasoline and diesel prices increased.The G20 meeting of finance ministers and central bank governors stressed policy coordination to boost economic recovery.• Han Zheng, Vice Premier of The State Council and Director of the Food Safety Commission of The State Council, presided over the fourth plenary meeting of the Food Safety Commission of The State Council and delivered a speech on 17th.Han stressed the need to strengthen scientific and technological support, promote new technologies and new means, explore the establishment of a unified national food safety information traceability platform, strengthen the analysis and application of big data, and improve the targeted and effective supervision., recently, the National Development and Reform Commission, the central net letter office, the Ministry of Industry and Information Technology, the National Energy Administration jointly issued by the notice, agreed to in beijing-tianjin-hebei, Yangtze river delta, a large bay area of guangdong, chongqing, guizhou, gansu, ningxia, Inner Mongolia, such as eight national hub node, to start the construction and planning of the ten national data center cluster.At this point, the overall layout design of the national integrated big data center system has been completed, and the project of “East and West Calculation” has been officially launched.• The National Development and Reform Commission will promote the formulation and promulgation of the Program of Action for Promoting Common Prosperity, and establish basic institutional arrangements for coordinating primary distribution, redistribution, and tertiary distribution.We will take the lead in formulating a plan to expand the middle-income group, and study the establishment of a monitoring and evaluation system for promoting common prosperity.• The National Development and Reform Commission (NDRC) announced on February 17 that the domestic gasoline and diesel prices will rise by 210 yuan and 200 yuan per ton respectively from 24:00 on February 17, 2022, according to the current pricing mechanism of refined oil products, based on recent changes in international oil prices.This is the fourth consecutive increase in gasoline and diesel prices.• CBRC data show that by the end of 2021, the balance of agriculture-related loans was 43.21 trillion yuan, among which the balance of inclusive agriculture-related loans was 8.88 trillion yuan, up 17.48% from the beginning of the year, 6.18 percentage points higher than the average growth rate of all loans.In the next step, the CBRC will guide financial resources to prioritize the supply of grain and important agricultural products, and increase financial support for rural industries and new business entities, said Zhang Zhongning, deputy director of the CBRC general Office.• Gao Feng, spokesperson of the Ministry of Commerce, said on The 17th that China is willing to make efforts to fully meet the CPTPP rules and standards through reform, and make a high-level commitment of opening up in the field of market access that exceeds China’s existing contracting practice, and provide members with market access opportunities with huge commercial benefits.Gao also said moFCOM will work with local governments and relevant departments to take multiple measures to ensure the stability and smooth flow of foreign trade industrial chains and supply chains.• The General Administration of Customs announced on April 17 that the Measures for the Administration of the Comprehensive Bonded Area of the Customs of the People’s Republic of China will come into force on April 1.• Beijing takes the lead in launching the first round of centralized land sale in 2022.On February 16 and 17, 17 of the 18 land parcels sold in Beijing were sold for 48 billion yuan, an overall premium rate of 4.5%.One lot failed to sell because the bidder did not make an offer.These 18 lands attracted a total of 22 real estate enterprises (housing enterprises to participate in the land does not double count) and the consortium to participate in the field bidding, state-owned enterprises and central enterprises are still the main force to take the land, and eventually also take the land.• Shanghai Financial Court issued the Report on The Prevention of Legal Risks in Private Fund Disputes, and put forward ten suggestions on improving the contract terms of private fund, including clarifying the nature of the legal relationship of private fund;The circumstances and legal consequences of the suggestion;Disclose whether to provide other credit enhancement measures and specific methods, etc.• Guangzhou municipality issued the “14th Five-year Plan for Scientific and Technological Innovation in Guangzhou” and proposed that it would strive to promote the listing of at least 60 scientific and technological enterprises within 5 years.• In 2021, the import and export volume of Zhejiang Pilot Free Trade Zone exceeded 770 billion yuan, up 39.3% year on year, 17 percentage points higher than the provincial average, contributing 28.7% to the provincial increment in the same period, and promoting the provincial foreign trade scale to a record high.• In 2021, the import and export value of Shenzhen Qianhai FREE Trade Zone reached a record high of 1.59 trillion yuan, accounting for 4% of the total import and export value of China, and maintaining a growth trend of more than 30% for two consecutive years.• The Municipal Committee of the Science and Technology Innovation Board announced that the ipo of Shanghai Conglin Environmental Protection Technology Co., LTD., Jiangsu Huasheng Lithium Electric Materials Co., LTD., and Guangdong Nerui Radar Technology Co., LTD.• According to the China Non-ferrous Metals Industry Association, in 2021, China’s non-ferrous metal production maintained steady growth, with the output of ten commonly used non-ferrous metals reaching 645.43 million tons, and the profits of non-ferrous metal enterprises above designated size reaching 364.48 billion yuan, a record high.• He Wenbo, executive chairman of China Iron and Steel Association, said on December 16 that In 2022, China’s economy will maintain the basic trend of seeking progress while maintaining stability. With the introduction and implementation of various measures to stabilize growth, the actual steel demand is becoming clearer and clearer, and is expected to basically maintain the level of last year.• The software Institute of the Chinese Academy of Sciences released a new quantum computing programming software — ISQ-Core, which was successfully deployed to the world’s leading superconducting quantum hardware platform, marking an important step in the combination of domestic quantum computing software and hardware.• The G20 Finance Ministers and Central Bank Governors meeting will be held in Jakarta, Capital of Indonesia from March 17 to 18. The meeting will focus on the priorities, difficulties and prospects of the global economic recovery, and enhance the coordination of economic recovery policies among the participants.• The INTERNATIONAL Monetary Fund warned that supply chain disruptions could affect eurozone growth in 2021 and test the European Central Bank because of the pandemic, which could last until 2023.• The Fed’s Mr. Bullard said that taming inflation might require moving the benchmark interest rate above the neutral target rate, which he put at around 2%.He also repeated his previous view that the Fed should raise interest rates by a cumulative 100 basis points by July 1 and start shrinking its balance sheet in the second quarter to tackle the fastest inflation in 40 years.• The 30-year mortgage rate averaged 3.92%, up from 3.69% last week and the highest level since May 2019, Freddie MAC said in a statement on Monday.It was the second year in a row that US mortgage rates rose, tracking the rise in 10-year Treasury yields.• The UN Security Council held an open session on Ukraine on Monday to review the implementation of the new Minsk agreement.Zhang Jun, China’s Permanent Representative to the UN, expounded China’s position on the current situation in Ukraine at the meeting, stressing that the solution to the Ukrainian issue should return to the starting point of implementing the New Minsk Agreement.• Turkey’s central bank kept its key interest rate unchanged at 14%, in line with market expectations.• U.S. initial jobless claims for the week ended February 12 were revised to 248,000 from 223,000 vs. 219,000 expected.• US Housing starts totaled 1.638m annualized in January versus 1.702m exp. 1.7m.– Stock • *ST Deao Was registered by China Securities Regulatory Commission on suspicion of violation of Shinpi regulations;Otaka real controller terminated planning change of control and resumed trading on 18 days;Suncity failed to pay the interest of $27.262,500 on its offshore bonds within the 30-day exemption period;About 2.932 billion restricted shares of BOE A will be listed and circulated on February 21.Kangtai Medical’s COVID-19 test kit has been added to the “white list” of export supplies.The net profit of Central Plains Securities in 2021 increased by 385.57%;In 2021, The net profit of Sherde Wine industry was 1.246 billion yuan, an increase of 114.35%;Jilin High-speed 2021 net profit increased 221.42%;The actual controlling person of Hongxiang Shares intends to reduce the holding of no more than 7% of the company’s shares;The SOCIAL Security Fund reduced its holdings of PICC by 1.6005%;Yuexiu Financial Holding and its co-operatives increased their holdings of citic Securities by 1.0019%.• European markets: The FTSE 100 Index closed at 7,537.37 points, down 66.41 points or 0.87% from the previous day.In Frankfurt, the DAX index fell 102.67 points, or 0.67 percent, to 15,267.63.The CAC40 index in Paris closed at 6,946.82, down 18.16 points or 0.26 percent from the previous day.• U.S. stock markets: The three major stock indexes in New York fell sharply on The 17th, with the Dow Jones Industrial Average closing at 34311.18, down 1.78%.The Nasdaq Composite index fell 2.88% to 13,716.72;The S&P 500 was down 2.12% at 4380.04.– Bonds • Chinese bond market: The bond market sentiment continued to improve on The 17th, the futures market, the 10-year bond led the rally, the end of the day up 0.15%, increased positions during the day 8,400 lots;In the cash market, the downside was more pronounced at the short end, with the 10-year Treasury yield late at 2.7800%.• Midea Group issued us $450 million of 5-year senior unsecured green bonds with a final pricing of T+98 basis points, setting a record of the lowest issuance spread of overseas US dollar bonds with the same rating and maturity in the industry.• Suncity announced on The 17th that due to the macroeconomic environment, industry environment and financing environment, the company’s liquidity appeared stage tension.Failed to pay interest on offshore bonds totalling US $27.262,500 within the 30-day exemption period (i.e. Feb 15).• European bonds: German 10-year yields were down 4.5 basis points at 0.231% in late European trading on Thursday.French 10-year yields were down 4.5 basis points at 0.704%.Yields on 10-year gilts were 6.1 basis points lower at 1.463%.Italian 10-year yields were down 7.5 basis points at 1.835 per cent.Spanish 10-year yields were down 5.6 basis points at 1.217 per cent.Greek 10-year yields were down 3.5 basis points at 2.625 per cent.• U.S. bonds: The benchmark 10-year Treasury yield briefly fell more than 10 basis points from Wednesday’s 2-1/2-year high after falling below 2.00% on Monday.By the end of the 17th, the 10-year Treasury yield was 1.965%, down 8 basis points from the previous session;The yield on the five-year note was at 1.8466%, down 7.2 basis points from the previous session.Currency • Overnight Shibor fell 8.70bp to 1.8550% on Monday;The seven-day Shibor fell 5.50BP to 2.0020%.The 14-day Shibor rose 1.90BP to 2.0470%;Shibor fell 0.40BP to 2.4060% in March.In the interbank pledge repo market, the weighted average interest rate of DR001 and R001 decreased by 7.2BP and 7.1BP respectively to 1.8603% and 1.9103%.Trading volume decreased 29.2 billion yuan, 81.1 billion yuan;The weighted average interest rate of DR007 and R007 decreased by 5.6BP and 1.6BP to 1.9735% and 2.0577%, respectively.The turnover increased by 13 billion yuan and decreased by 20.5 billion yuan;The weighted average interest rates of DR014 and R014 were up 3.0BP and down 2.5BP, respectively, at 2.0706% and 2.2734%.Turnover increased by 5.1 billion yuan and 21.7 billion yuan respectively.– FOREx • Feb 17 usd/RMB onshore closed at 6.3380 yuan at 23:30 BST, down 14 basis points from the last trading close and 59 basis points from the daily midpoint.• The U.S. dollar index rose on the 17th, rising 0.10% to 95.7960 against six major currencies by late trading in New York.– The main commodity and domestic futures contract ended the day mixed.Among them, iron ore fell more than 4%, glass, soda fell more than 2%.In terms of increase, coking coal rose more than 4%, palm oil, beans, coke rose more than 2%.International copper ended down 0.42 percent, Shanghai copper down 0.18 percent, Shanghai aluminum up 0.46 percent, Shanghai zinc up 0.32 percent, Shanghai lead up 0.84 percent, Shanghai nickel up 1.87 percent and Shanghai tin up 1.12 percent.Stainless steel closed down 1.81 per cent.The 2204 contract ended down 0.44 percent at 563.60 yuan a barrel overnight.• Gold futures for April delivery, the most actively traded contract on the COMex gold futures market, rose $30.50, or 1.63%, to settle at $1,902 an ounce.• New York oil prices fell on The 17th, with New York light crude for March delivery down $1.90 to settle at $91.76 a barrel.• Futures prices of major agricultural commodities in Chicago continued to rise on The 17th.Among them, corn for March ended at $6.50 a bushel, up 0.46% from the previous session.The May contract closed at $8.0475 a bushel, up 2.35 per cent from the previous session.The March soybean contract closed at $15.92 a bushel, up 0.28 per cent from the previous session.• Base metal futures on the London Metal Exchange closed mostly higher on the 17th.LME copper ended down $64 at $9,929 a tonne.LME aluminum ended up $12 at $3,268 a tonne.LME zinc closed up $22 at $3,606 a tonne.LME lead closed up $8 at $2,346 a tonne.LME nickel closed up $480 at $23,886 a tonne.LME tin ended up $144 at $43,843 a tonne.•07:30 Japanese January Core CPI Y/y •14:30 French 4Q ILO Unemployment rate •15:00 UK January ADJUSTED Retail Sales m/m •15:45 French January CPI m/m •17:00 Euro Zone December Adjusted Current Account •21:30 Canadian December Retail Sales m/m •23:00Us January Total Existing Home Sales Annualized, January Conference Board Leading Indicators m/M rate •23:15 Fed Evans speech •23:45 Fed Governor Waller speech •24:00 Fed Williams keynote speech • 02:00 US Oil Drilling total for the week to February 18 • 04:30 the next dayHang Seng Index Corporation announces quarterly inspection results for the fourth quarter of 2021: A national financial information platform built by Xinhua Finance for Xinhua News Agency.Under no circumstances does the information published on this platform constitute investment advice.