ChinaScope Daily Dim Sum: January 2012

Friday, January 20, 2012

Jan 20 - Beijing 2011 Commercial Housing Sales Fell 12.2%

Source: Beijing Statistical Information Net, ChinaScope Financial (Data)

+ Beijing’s GDP in 2011 was CNY 1.6 trillion, an 8.1% year-on-year real growth.

+ In 2011, Beijing’s GDP per capita was CNY 80,934 (USD 12,447), close to the level in developed countries.

+ Related Data: Local GDP of Beijing, and Growth Rates

Per capita GDP in Beijing is approaching the level in wealthy countries.

Local GDP growth is slowing down in Beijing when the total scale of economy is larger.

For more data of Chinese regional economy, please visit www.chinascopefinancial.com

Other News Headlines

China’s 3G Subscribers Reach 128 Million, 3G Investments Totaled CNY 455.6 Billion
Beijing’s GDP Per Capita in 2011 at CNY 80,934, Close to That in Developed Countries
Beijing 2011 Commercial Housing Sales Fell 12.2%
Yonghui Superstores: 2011 Net Profit Lower Than Expectations

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Jan 20 - China’s 3G Subscribers Reach 128 Million, 3G Investments Totaled CNY 455.6 Billion

Source: Ministry of Industry and Information Technology, ChinaScope Financial (Data)

+ Data released by the Ministry of Industry and Information Technology (MIIT) on January 18 shows that China’s 3G subscribers was 128 million at the end of 2011. China Telecom Co., Ltd. (HKEX: 0728) and China United Network Communications Ltd. (China Unicom) (SSE: 600050) had 37.19 million and 40.02 million 3G subscribers respectively.

+ China currently has 814,000 3G base stations in total, of these, China Telecom has 269,500 and China Unicom has 324,500.

+ Total 3G investments accumulated CNY 455.6 billion.

+ Related Data: Number of Monthly Addition 3G Subscribers of Telecommunication Operators in China, Number of 3G Base Stations of Telecommunication Operators in China

China Unicom and China Telecom surpassed China Mobile on Monthly Addition 3G Subscribers in late 2011

While China Unicom Leads the Construction of 3G Base Stations

Trading Comparable

For more data of Chinese TMT industry and companies, please visit www.chinascopefinancial.com

Other News Headlines

China’s 3G Subscribers Reach 128 Million, 3G Investments Totaled CNY 455.6 Billion
Beijing’s GDP Per Capita in 2011 at CNY 80,934, Close to That in Developed Countries
Beijing 2011 Commercial Housing Sales Fell 12.2%
Yonghui Superstores: 2011 Net Profit Lower Than Expectations

Jan 19 - China’s FDI Decreased 12.73% YoY in December 2011

Source: Beijing Statistical Information Net, ChinaScope Financial (Data)

+ Data from the Ministry of Commerce (MOFCOM) on January 18 shows that China’s foreign direct investment inflow (FDI) in December 2011 was USD 12.24 billion, a 12.73% year-on-year decrease.

+ The total FDI inflow in 2011 was USD 116.01 billion, a 9.72% year-on-year increase.

+ Related Data: FDI Inflow, Origins of FDI

China’s FDI inflow slowing down, severely affected by lower inflows from the US and Europe

For more data, please visit www.chinascopefinancial.com

Other News Headlines

China’s Social Financing in 2011 Was 12.83 Trillion
China’s FDI Decreased 12.73% YoY in December 2011
Home Prices in 70% Large and Medium Cities Fell MoM in Dec.
China’s Reduced Treasury Holdings by USD 1.5 Billion in Nov.

Jan 19 - China’s Social Financing in 2011 Was 12.83 Trillion

Source: Ministry of Industry and Information Technology, ChinaScope Financial (Data)

+ Data from People’s Bank of China (PBOC) on January 18 shows that China’s social financing in 2011 was at CNY 12.83 trillion, CNY 1.11 trillion less than that of 2010.

+ In 2011, 58.3% of total social financing was contributed by bank loans denominated in CNY, 1.6 percentage points higher than that of 56.7% in 2010, while 4.5% was contributed by foreign currency loans, 1 percentage point higher than that of 3.5% in 2010.

+ Related Companies: China Telecom (HKEX: 0728) , China Mobile (HKEX: 0941), China Unicom (Hong Kong) (HKEX: 0762)

+ Related Data: Social Financing Scale, RMB Loans

Undiscounted bank acceptance bills: the largest decrease compared with last year.

For more data on other financial information, please visit www.chinascopefinancial.com

Other News Headlines

China’s Social Financing in 2011 Was 12.83 Trillion
China’s FDI Decreased 12.73% YoY in December 2011
Home Prices in 70% Large and Medium Cities Fell MoM in Dec.
China’s Reduced Treasury Holdings by USD 1.5 Billion in Nov.

Thursday, January 19, 2012

Jan 18 - PBOC Injected Liquidity via Reverse Repo of CNY 169 Billion

Source: Ministry of Commerce, ChinaScope Financial (Data)

+ The People’s Bank of China (PBOC) conducted 14-day reverse repurchase agreement operations worth CNY 169 billion yesterday.

+ The yield of the reverse repo is at 5.47%.

+ This operation is to inject market liquidity in order to meet the high demand for cash during the Chinese New Year holidays.

+ Related Data: Open Market Operation by PBOC

Instead of lowering the required reserve ratio, PBOC chose the 14-day reverse repurchase agreement to inject liquidity into the market before Chinese New Year.

For more data about monetary policy, please visit www.chinascopefinancial.com

Other News Headlines

CMB and CITIC Bank Will Issue Bonds for Loans to Small and Micro Enterprises
PBOC Injected Liquidity via Reverse Repo of CNY 169 Billion
60% Listed Real Estate Companies Missed 2011 Sales Target
CIRC Strengthening Regulation of Insurance Agent Market
China’s Movie Box Office Increased 29% in 2011

Jan 18 - CMB and CITIC Bank Will Issue Bonds for Loans to Small and Micro Enterprises

Source: PBOC, ChinaScope Financial (Data)

+ China Merchants Bank Co., Ltd. (CMB) (SSE: 600036; HKEX: 3968) announced on January 17 that the China Banking Regulatory Commission (CBRC) and the People’s Bank of China (PBOC) has approved its plan to issue a maximum of CNY 20 billion worth of bonds to support its lending to small and micro enterprises.

+ China CITIC Bank Co., Ltd. (SSE: 601998; HKEX: 998) announced on the same day that it plans to issue CNY 30 billion worth of financial bonds, also to be used for loans to small and micro enterprises. However, this plan still awaits approval from its shareholders, CBRC, and PBOC.

+ Related Companies: China CITIC Bank (SSE: 601998), China Merchants Bank (SSE: 600036)

+ Related Data: Small and Micro-sized Loans, Financial Bonds

Summary of loans and financial bonds for small and micro-sized enterprises

Trading Comparable

For more data on other banks, please visit www.chinascopefinancial.com

Other News Headlines

CMB and CITIC Bank Will Issue Bonds for Loans to Small and Micro Enterprises
PBOC Injected Liquidity via Reverse Repo of CNY 169 Billion
60% Listed Real Estate Companies Missed 2011 Sales Target
CIRC Strengthening Regulation of Insurance Agent Market
China’s Movie Box Office Increased 29% in 2011

Monday, January 16, 2012

Jan 16 - Dai Xianglong: Only a Small Fraction of Pension Funds Will Be Invested in Stock Market

Source: Securities Times, ChinaScope Financial (Data)

+ According to DAI Xianglong, Chairman of the National Council for Social Security Fund of the People’s Republic of China, the pension funds to be invested in capital market refer to the pension funds with the nature of reserve, accumulation, and steady reinvestment, instead of the “pay as you go” pension funds.

+ Only a small fraction of the pension funds will be allowed to be invested in equity stocks.

+ DAI emphasized a long-term and responsible value investment concerning the stock investment for pension funds.

+ Related Data: Persons Covered by Social Welfare, Income and Expenditure of Social Welfare Fund, Income and Expenditure of New Rural Pension Fund

Coverage of social insurance has been improving in recent years.

For more data on Chinese macro data, please visit www.chinascopefinancial.com

Other News Headlines

Funds Outstanding for Foreign Exchange Fall for Three Consecutive Months
Dai Xianglong: Only a Small Fraction of Pension Funds Will Be Invested in Stock Market
Release of 12th Five-Year Plan for Food Industry
Subsidized Sales of Home Appliances in the Countryside Drops 30% Due to Policy Exit

Jan 16 - Funds Outstanding for Foreign Exchange Fall for Three Consecutive Months

Source: China Business News, ChinaScope Financial (Data)

+ China’s funds outstanding for foreign exchange were CNY 25.35 trillion in December 2011, CNY 100.33 billion less compared to November 2011.

+ With a month-on-month decrease of CNY 24.8 billion in October and CNY 27.9 billion in November, funds outstanding for foreign exchange had dropped for the third consecutive month in December, and the decline rate had been expanded.

+ China’s foreign exchange reserves were USD 3.18 trillion in December 2011, about USD 40 billion less compared to November.

+ Related Data: Total Deposits and Loans of Financial Institutions, Forex Purchase, Forex Reserve

Both forex purchase and forex reserve saw declines in the last quarter.

For more data on China’s monetary and banking system, please visit www.chinascopefinancial.com

Other News Headlines

Funds Outstanding for Foreign Exchange Fall for Three Consecutive Months
Dai Xianglong: Only a Small Fraction of Pension Funds Will Be Invested in Stock Market
Release of 12th Five-Year Plan for Food Industry
Subsidized Sales of Home Appliances in the Countryside Drops 30% Due to Policy Exit

Thursday, January 12, 2012

Jan 12 - China’s Online Economy Reached CNY 260 Billion in 2011

Source: Caijing, ChinaScope Financial (Data)

+ The Consulting Group ‘iResearch’ reported on January 10 that China’s online economy was CNY 260 billion in 2011, compared with CNY 30 billion in 2006, and is expected to exceed CNY 1 trillion in 2015.

+ Revenues of China’s online advertising industry were CNY 50 billion in 2011. Of this, CNY 14.3 billion is contributed by Baidu, which has increased its revenues by a 76.4% year-on-year, a much higher growth rate than the industry average. In terms of online advertising revenue, Baidu is followed by Taobao and Google.

+ China Internet Network Information Center (CNNIC) reports that the number of China’s Internet users reached 505 million in November 2011, and it is expected to exceed 700 million in 2016, resulting in a population-coverage of over 50%.

+ Related Data: Internet Users, Size of Mobile Internet Market/ Internet Advertising Market/ Online Shopping Market/ Online Travel Booking Market/ Third-party Online Payment/ Online Video Market

Mobile internet has been a major driver of China’s online economy growth in 2011.

For more data of Chinese internet sectors, please visit www.chinascopefinancial.com

Other News Headlines

PPI Continues its Steep Decline, CPI Only Marginally Lower in December
Ten Banks to Issue Dim Sum Bonds in HK
China’s Online Economy Reached CNY 260 Billion in 2011
Group Buying Transactions Totaled CNY 11 Billion With Over 300 Million Subscribers in 2011
Poly Real Estate: Average Sale Prices Fell 25% YoY to CNY 10,818 per Square Meter in December
Stock of Grade A Office Buildings in Guangzhou Exceeds 2.37 Million Square Meters

Jan 12 - Ten Banks to Issue Dim Sum Bonds in HK

Source: NDRC, ChinaScope Financial (Data)

+ In January 2012, China’s National Development and Reform Commission (NDRC) approved the application of ten banks to issue dim sum bonds totaling CNY 25 billion in Hong Kong.

+ These ten banks are China Development Bank, The Export-Import Bank of China, Agricultural Development Bank of China, Industrial and Commercial Bank of China Ltd. (SSE: 601398; HKEX: 1398), Agricultural Bank of China Ltd. (SSE: 601288; HKEX: 1288), Bank of China Ltd. (SSE: 601988; HKEX: 3988) China Construction Bank Co. (SSE: 601939; HKEX: 0939), Bank of Communications Co., Ltd. (SSE: 601328; HKEX: 3328), The Bank of East Asia (China) Ltd., and HSBC Bank (China) Co., Ltd.

+ Related Data: RMB Bonds, RMB Deposits

The steady growth of Dim Sum bonds are supported by the high level of RMB deposits in Hong Kong.

For more data on other financials, please visit www.chinascopefinancial.com

Other News Headlines

PPI Continues its Steep Decline, CPI Only Marginally Lower in December
Ten Banks to Issue Dim Sum Bonds in HK
China’s Online Economy Reached CNY 260 Billion in 2011
Group Buying Transactions Totaled CNY 11 Billion With Over 300 Million Subscribers in 2011
Poly Real Estate: Average Sale Prices Fell 25% YoY to CNY 10,818 per Square Meter in December
Stock of Grade A Office Buildings in Guangzhou Exceeds 2.37 Million Square Meters

Jan 12 - PPI Continues its Steep Decline, CPI Only Marginally Lower in December

Source: NBS, NBS, ChinaScope Financial (Data)

+ This morning the Statistical Bureau published December’s inflation numbers; CPI was 4.1%, down 0.1 percentage point from November, and PPI was 1.7%, down a whole percentage point from November.

+ Non-food inflation was 1.2%, down one percentage point, while food inflation was 9.10, up 0.3 percentage points.

+ Related Data: CPI, PPI, CPI - Food and Non-food

CPI and PPI have been decreasing steadily in the second half of 2011. Food inflation, however, remains high.

For more data about China’s macroeconomic fundamentals, please visit www.chinascopefinancial.com

Other News Headlines

PPI Continues its Steep Decline, CPI Only Marginally Lower in December
Ten Banks to Issue Dim Sum Bonds in HK
China’s Online Economy Reached CNY 260 Billion in 2011
Group Buying Transactions Totaled CNY 11 Billion With Over 300 Million Subscribers in 2011
Poly Real Estate: Average Sale Prices Fell 25% YoY to CNY 10,818 per Square Meter in December
Stock of Grade A Office Buildings in Guangzhou Exceeds 2.37 Million Square Meters

Friday, January 6, 2012

Jan 05 - Residential Housing Price is Decreasing for the Fourth Consecutive Month

Source: 21st Century Business Herald, ChinaScope Financial (Data)

+ Data from the China Index Academy show that the average price of residential housing in 100 Chinese cities has decreased for four consecutive months, reaching a new low in December, 2011.

+ The residential housing prices in ten major cities, including Beijing, are declining at decreasing rates, measured in month-on-month terms.

+ Related Data: Sector Data of Real Estate

The growth rate of average housing price in 100 cities continues its four month declining trend and hits a new low in December.

More cities were experiencing drops in housing price.

For more data of real estate industry and companies, please visit www.chinascopefinancial.com

Other News Headlines

CBRC to Define Systematically Important Banks Based on Four Indicators
Residential Housing Price is Decreasing for the Fourth Consecutive Month
China Vanke Average Sales Price Increased 6.6% YoY in 2011
Shanghai Pudong Development Bank’s Net Profit Rose 42% in 2011
NCA Warns Online Movie Sites About Copyright Issues

Jan 05 - CBRC to Define Systematically Important Banks Based on Four Indicators

Source: China Business News,ChinaScope Financial (Data)

+ Meanwhile, China’s business activity index for non-manufacturing industries was 56% in December, further supporting the positive sentiment.

+ China’s Banking Regulatory Commission will rank domestic banks based on four indicators; size, interconnectedness, substitutability (financial infrastructure), and complexity, each with a weight of 25%.

+ Banks will be grouped based on their rank. The five major state-owned banks, Industrial and Commercial Bank of China Ltd. (SSE: 601398; HKEX: 1398), Agricultural Bank of China Ltd. (SSE: 601288; HKEX: 1288), Bank of China Ltd (SSE: 601988; HKEX: 3988), China Construction Bank Co. (SSE: 601939; HKEX: 0939) and Bank of Communications Co., Ltd. (SSE: 601328; HKEX: 3328), are expected to be categorized as systematically important banks and required to have a 1% loss absorbency in addition to the capital adequacy ratio, as stipulated by the Basel III. Currently, the capital adequacy ratio in these banks cannot be lower than 11.5%.

+ In terms of size, sub-indicators include asset balance, liability balance, gross income and market value.

+ In terms of interconnectedness, sub-indicators include intra-financial system assets, intra-financial system liabilities and wholesale funding ratio.

+ In terms of substitutability, sub-indicators include payment systems, and assets under custody.

+ In terms of complexity sub-indicators include overseas assets and business number of institutions, etc.

+ Related Data: CAR, Operating Scale, Overseas Branches

Major Banks’ CAR

Comparison of Operating Scale (11Q3)

Comparison of Complexity (11Q2)

Trading Comparable

For more data on other banks, please visit www.chinascopefinancial.com

Other News Headlines

CBRC to Define Systematically Important Banks Based on Four Indicators
Residential Housing Price is Decreasing for the Fourth Consecutive Month
China Vanke Average Sales Price Increased 6.6% YoY in 2011
Shanghai Pudong Development Bank’s Net Profit Rose 42% in 2011
NCA Warns Online Movie Sites About Copyright Issues