Hi everyone. I’m Stephanie LI.
巨匠好，我是主持人李莹亮。Coming up on today’s program.
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%.Here’s what you need to know about China in the past 24 hours
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.
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下调世界经济促成预期：7月26日，国际钱银基金构造(IMF)宣布《世界经济预测报告》更新内容，将2022年世界经济促成预期下调至3.2%。这是IMF继4月下调世界经济促成预期当前再次下调。报告还表现，尽管经济流动放缓，但全球通胀预测值被上调，部份启事是粮食和能源价格上涨。IMF预计，今年发家经济体的通胀率将达到6.6%，新兴市场和倒退中经济体的通胀率将达9.5%。Moving on to regional highlights
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50万集体户迎纾困“礼包”：26日上海市举行《上海市扶持集体工商户健康倒退的若干政策办法》消息通气会，聚会会议吐露，上海多部份“联手”翻新，针对集体工商户在租金、税费、社保、融资、刊出等方面的“痛点”“堵点”，会合制订出台34条支持运动，惠及50万余集体工商户。Greater Bay Area, Greater future
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.
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年可延续融资有望达4500亿美元：7月26日，大湾区资本市场论坛在线上举行。香港交易业务所行政总裁欧冠升默示，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。欧冠升觉得，可延续性倒退是大湾区必须关注的大趋势，到2030年，大湾区的可延续金融投资有望达到4500亿美元。Next on industry and company news
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 co妹妹ercial operations.
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.
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，名创优品在港交所宣布看护书记，称做空机构Blue Orca Capital一份做空报告的控诉毫无根据，且包孕无关公司材料的误导性结论及解释。公司董事会正在查看该控诉，并推敲给与适合行为以呵护全体股东的利益。
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.
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.
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.
腾讯互娱指电竞人材缺口200万：26日，腾讯互娱市场部副总经理侯淼在采访中默示，根据电竞行业如今的倒退速度，未来三四年时光内的人材缺口将达到200万，以至更多。此处的电竞人材是指全副电竞行业人材。侯淼称，如今腾讯电竞已与部份教诲机构举行课本合作，授权腾讯教诲合作搭档举行培训基地的试点。Earnings reports express
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龙头药明康透露半年报，据财报表现，今年上半年，药明康德完成业务收入177.56亿元，同比促成68.52%；归母净利润46.36亿元，同比促成73.29%；根蒂根基每股收益为1.59元。期内红利金额已创出同期历史最高水平。尽管事迹亮丽，药明康德股价表现仍不志向，27日药明康德A股收盘随即翻绿，收盘跌超5%。Switching gears to financial news
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.
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％：尽管央行在果真市场小额净回笼，但资金面仍旧延续宽松，银行间市场存款类机构隔夜质押式回购利率（DR001）以至跌破1%。7月27日，中国钱银网数据表现，DR001加权匀称利率早盘即跌破1%，创下2021年1月8日以来新低。Wrapping up with a quick look at the stock market
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.
Biz Word of the Day
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.
Executive Editor: Sonia YU
Editor: LI Yanxia
Host: Stephanie LI
Writer: Stephanie LI, JIA Yuxiao, ZENG Libin
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