What's news

GOVT AND POLICIES

China conducts new central bank bills swap

The People's Bank of China, the central bank, on Wednesday conducted the sixth central bank bills swap (CBS) operation to improve the liquidity of perpetual bonds issued by commercial banks. The CBS, valued at 6 billion yuan ($852.9 million), are open to primary dealers for bidding at a fixed rate at 0.1 percent, the central bank said in a statement. The swap will be due on Feb 27, 2020, the statement showed. The CBS scheme allows dealers to swap the perpetual bonds they hold for central bank bills, which will effectively boost market demand for perpetual bonds but have a neutral impact on liquidity in the banking system.

Banks to beef up data governance steps

The Chinese banking industry's self-regulatory organization on Wednesday said more technological standards are in the pipeline to help better govern torrents of data in the sector. As the industry is typically data-driven, stronger data governance gives a strong boost to lenders' efficiency and competitiveness, said Pan Guangwei, vice-president of the China Banking Association (CBA), during a digital banking forum in Shenzhen, South China's Guangdong province. While the banks possess enormous troves of customer and transaction data, they face problems in data integration, standardization and application, which are dragging down the industry's digital transformation, Pan said.

Number portability program launched

China launched a mobile number portability program across the country on Wednesday, allowing cellphone subscribers to switch service carriers without changing phone numbers, according to the Ministry of Industry and Information Technology. Technology, systems and rules for services related to the program have been implemented after nationwide trial operation, it said. The ministry has asked related enterprises to rectify problems exposed during the trial, such as some carriers creating obstacles for the service switch, said Lu Chuncong, a ministry official, noting that the program will promote benign competition among enterprises.

Overseas Chinese invest $497m in Anhui

Nearly 100 overseas Chinese signed agreements for projects worth 3.5 billion yuan ($497.9 million) in an innovation center in Hefei, capital of East China's Anhui province on Tuesday. A total of 32 project agreements were signed in the Overseas Chinese Innovation Center of Hefei, covering biomedicine, intelligent manufacturing, artificial intelligence and other industries. "Overseas Chinese have made important contributions to China's economic development with their innovative spirit and entrepreneurial enthusiasm. The country's rapid economic development has also offered them bigger room for development," said Qiu Liguo, deputy head of the overseas affairs department of the China Overseas Friendship Association.

COMPANIES AND MARKETS

Diatomite mining in Kenya to start in Jan

Chinese mining firm Chuanshan International Mining Co will begin mining of diatomite in January 2020 in northwestern Kenya's Baringo county, a government official said. John Morangi Omenge, principal secretary in the Ministry of Petroleum and Mining of Kenya, told journalists in Baringo that the Chinese firm has been conducting exploration activities in the region for more than two years to confirm the size of the mineral deposits.

Leica Microsystems opens innovation center

Leica Microsystems, a leading German optical technology and product manufacturer, has opened an innovation center in the city of Suzhou, East China's Jiangsu province. Located in Suzhou Industrial Park, the center covers a floor space of 500 square meters. It is expected to develop high-quality and cutting-edge products for the Chinese and global markets, driving the company's sales up to an estimated $200 million over the next five years. "We are attracted by the prospects of China's economy and the huge market potential here," said Gordon Chen, marketing director of Leica Microsystems China.

John Deere lowers outlook for 2020

John Deere, the world's leading tractor maker, has reported less quarterly earnings and lowered its 2020 sales outlook amid prolonged trade tensions between the United States and its key trade partners. The Illinois-based farm and construction equipment maker, reported on Wednesday net income of $722 million for the fourth fiscal quarter that ended Nov 3. That's an 8 percent decline year-on-year, compared to $785 million for the same period of 2018. "John Deere's performance reflected continued uncertainties in the agricultural sector," said John C.May, its chief executive officer.

AROUND THE WORLD

Retail sales grow in S. Korea during October

South Korea's retail sale grew last month on the continued double-digit growth in online shopping, a government report showed on Thursday. Combined revenue of 26 major online and offline retailers rose 4.1 percent in October from a year earlier, according to the Ministry of Trade, Industry and Energy. Sale by online retailers expanded 12.5 percent in the month, keeping a double-digit gain for three straight months amid a rapid change into the consumption pattern using smartphone apps. Demand for food in the cyberspace grew in double figures after the spread of one-day food delivery services.

Mexico downgrades GDP growth target

The Central Bank of Mexico on Wednesday downgraded its economic growth forecast for 2019 and 2020, citing weak production and uncertainty. The bank's latest report lowered its growth forecast for this year to between-0.2 and 0.2 percent from the previous projection of 0.2 to 0.7 percent. For 2020, expected growth was adjusted from the earlier forecast of 1.5 to 2.5 percent to 0.8 to 1.8 percent. "The latest information shows weakness will be greater and last longer than previously forecast," the bank said.

US economic growth expands by 2.1% in Q3

US economic growth in the third quarter expanded at an annual rate of 2.1 percent, up from its previous estimate of 1.9 percent, the US Commerce Department reported on Wednesday. According to the second estimate released by the Bureau of Economic Analysis, upward revisions to private inventory investment, nonresidential fixed investment, and personal consumption expenditures were partially offset by a downward revision to state and local government spending. The 2.1 percent growth rate in the third quarter, which is slightly up from the 2 percent in the second quarter, marks a sharp deceleration from the 3.1 percent in the first quarter.