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New Security Regulation Might Limit Investors’ Ability to Participate in Security Trading

Guangming Daily published an article which stated that a new regulation that the China Security Regulatory Commission introduced is set to become effective on July 1. The regulation requires that investors fill out a survey on “Risk Tolerance Ability.” The sample questions include questions such as current source of income; educational background or work experience; and plans to utilize returns from the investments. Then the investors will be divided into the following five types based on their ability to take risks, and how conservative, cautious, stable, active, and aggressive they are. Securities will be divided into different levels based on the level of risk. Investors in each category will only be able to purchase securities that fit their category or any categories that are rated lower than theirs. The new regulations are said to “sell the right products to the right group of investors.” The article pointed out that the new regulation will affect 125 million investors and will likely mean that not every citizen will have an opportunity to participate in trading securities.

Source: Guangming Daily, June 20, 2017

Xinhua: Central Inspection Work Found Local Governments Faked Economic Data

Xinhua recently reported that the Communist Party Central Commission for Discipline Inspection recently released a report that showed “issues” it had found in the provinces of Inner Mongolia, Jilin, Yunnan and Shanxi. The Twelfth Inspection Round was a “random patrol” on provinces and central-government-owned companies that had been inspected before. There have been “random patrols” done in 12 provinces already, as part of the “look-back” initiative. The new round discovered that a wide range of issues that were discovered in the previous round had not been properly remedied. Most importantly, some local governments in Inner Mongolia and Jilin were found to be faking official economic data. This new round of inspection resulted in some additional government officials being put under further investigation.

Source: Xinhua, June 12, 2017

China Published 2017 Blue Book Report on College Graduates Employment

Web news media Zhejiang Province Online recently reported, based on information aggregated from various popular Chinese sources, on the newly published Blue Book Report on Chinese College Graduates Employment. An independent third-party publisher instead of the Chinese government compiled the Blue Book. The survey was based on a sample of 289,000 2016 college graduates. According to the Blue Book, 91.6 percent of the students were employed within six months of graduation. However, only 65 percent of them were satisfied with the work they found. The highest job satisfactory lies in the top-five categories: software development companies, colleges, the Communist Party or government branches, Airlines, and some other Communist Party or government related organizations. The average new college-graduate worker’s monthly salary was RMB 3,988 (around US$586). The Blue Book also shows that the most popular college majors welcomed by the employers were Software Engineering, Network Engineering, Communications Engineering, and Information Security. The least popular majors were Music Performance, Fine Arts, and Law School. The Blue Book also found that the attractiveness of the “First Tier” cities (Beijing, Shanghai, Guangzhou, and Shenzhen) had declined.

Source: Zhejiang Province Online, June 14, 2017

China News: Around 20 Banks Have Stopped Making Home Loans

China News recently reported that the “first tier” real estate cities (Beijing, Shanghai, Guangzhou, and Shenzhen) have all been increasing home loan interest rates. Cities in the second and the third tiers are following suit. China has been tightening up the real estate market in an effort to control the ever-increasing housing prices. The banks are seeing a sharp decline in terms of business volume. Their response is to introduce an interest rate hike on those who will have to buy a home no matter where the market is heading. According to new market study statistics, out of 533 banks in the home loan market, around 170 banks have lowered interest rate discounts, 244 banks have switched to the standard (government set) interest rate, 20 banks have even stopped providing home loans. The Chinese government’s current policy of restricting home loans is taking effect. The housing market is expected to cool down and banks are expecting a much lower profit level.

Source: China News, June 10, 2017

India’s GDP Growth Rate Surpassed China for Three Years in a Row

Well-known Chinese news site Sina recently reported that, according to the official numbers that the Indian government just released, India’s 2016 fiscal year GDP growth rate was 7.1 percent. This has been the third year in a row for India to have a higher growth rate than China. The Indian government and the private sector investments suffered a very slow growth rate, at two percent. However personal spending grew very strongly, at nine percent. In the meantime, based on the newly released numbers, India’s disruptive abolition of large bills near the end of 2016 did cause some negative impact on consumer spending. The World Bank estimated that India will enjoy a 7.2 percent growth in 2017 and 7.5 percent in 2018. The International Monetary Fund expects India’s 2018 growth will even reach 7.7 percent. Experts expressed the belief that India’s tax reform will bring growth in the future. China’s official 2016 GDP growth rate was reported to be 6.7 percent.

Source: Sina, May 31, 2017 China Faces a Pension Shortage of 8-10 Trillion Yuan over the Next 5-10 Years

According to, the Tsinghua PBCSF Global Finance Forum was held on June 3-4 in Beijing. The theme of the forum was Economic Globalization and Financial Stability. At the forum, Zhou Yanli, the former Vice Chairman of the China Insurance Regulatory Commission (CIRC) gave a lunch presentation. During his delivery, Zhou disclosed that China faces a large shortage in its pension reserves amounting to eight to 10 trillion yuan (US$1.18 trillion to 1.47 trillion) over the next five to 10 years. At the same time, social security funding has a balance of over 2 trillion yuan (US$0.29 trillion) and also faces a large shortfall. Zhou proposed that, in addition to the funding that the Ministry of Finance provides and what business enterprises contribute, more effort is needed to expand investment in pension insurance as well as pushing growth in the social security fund in order to supplement the shortage in the pension fund. By the end of 2016, China had a population of 22.4 billion people who were over 60-years-old.

Source:, June 3, 2017

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