Manufacturing Tipped to Remain Weak
HSBC's preliminary gauge for China's manufacturing activity reads 48.1, the lowest level in seven months, showing the world's second largest economy continues to falter due to ebbing foreign demand. A reading below 50 indicates a shrinking manufacturing industry.
Threshold for Foreign Investors Lowered
China plans to lower the entry barrier for foreign institutional investors looking to buy publicly traded securities at mainland exchanges, Bloomberg reported. The government will cut the minimum requirement on assets under management from $5 billion to $500 million for companies seeking a license under the Qualified Foreign Institutional Investor program, the China Securities Regulatory Commission said. The regulator also said it will allow them to invest in the country's interbank bond market.
Investment in Power Generation Down 2% Jan-May
Investment in China's power generation assets dropped 2% year on year to ¥114.3 billion in the first five months of the year, where investment in coal-fired plants slumped 25.3% to ¥29.5 billion, the China Electricity Council said. In comparison, investment in hydropower plants climbed 45.5% to ¥44.4 billion as the government steps up developing cleaner energy.
Bank Loans Projected to Total Up to ¥1t in Jun
Bank lending will range between ¥900 billion and ¥1,000 billion in June, experts predicted as the end of June as well as the end of Q2 usually sees a strong surge in credit demand. China's new Renminbi-denominated loans totaled ¥793.2 billion in May, up from ¥681.8 billion a month earlier and ¥241.6 billion more than a year earlier, according to central bank figures.
$1 = ¥6.36