（原标题：CBN丨China's industrial profits rebound in August）
Hi everyone. I’m Stephanie LI.
Coming up on today’s program.
China’s industrial enterprises profit bounced back in positive territory in August;
PBOC vows to beef up support for recovery and keep the yuan stable.
China's industrial profits increased in August for the first time in a year, signaling the economy continues to be on the recovery path amid a raft of supportive policy measures.
Data from the National Bureau of Statistics showed on Wednesday that industrial enterprises with annual revenue of at least 20 million yuan saw their total profits jump 17.2 percent year-on-year in August after a 6.7 percent decline in July.
Yu Weining, a statistician at the NBS, attributed the improvement in industrial profits to the steady rebound in industrial production and improved corporate profitability with a series of stimulus measures taking effect gradually.
For the January-August period, industrial firms' profits fell 11.7 percent year-on-year to 4.66 trillion yuan, narrowing from the 15.5 percent drop in the first seven months, the bureau said.
Among the 41 major industrial sectors surveyed, 30 saw improvements such as accelerated growth, narrowed profit declines or year-on-year growth in their profits during the first eight months.
During the January-August period, profits recorded by industrial firms that offer supply of electricity, heat, gas and water grew by 40.4 percent year-on-year, up from the 38 percent rise in the first seven months.
Meanwhile, profits recorded by mining firms and manufacturing companies shrank by 20.5 percent and 13.7 percent, respectively, in the first eight months, compared to the 21 percent decline and 18.4 percent contraction in the first seven months.
Notably, profits of equipment manufacturing enterprises rose by 3.6 percent on a yearly basis during the January- August period after a 1.7 percent growth during the first seven months.
Profits of electrical machinery manufacturing firms and auto companies jumped 33 percent and 2.4 percent year-on-year during that period, respectively.
Fuzhou-Xiamen high-speed railway, a high-speed rail running from Fuzhou to Xiamen and to Zhangzhou in southeast China’s Fujian Province, is expected to start operation on Sept 28. The rail will connect Fuzhou and Xiamen in just 55 minutes, making it possible for residents of both cities to live within a "one-hour living circle". Fuzhou-Xiamen high-speed railway starts from Fuzhou South Station, passing through the cities of Putian, Quanzhou, Xiamen, ending at Zhangzhou Station with a total length of 277 kilometers and a designed top speed of 350 kilometers per hour.
North China's Inner Mongolia said Wednesday that it would issue special government bonds to ease debt pressures, as Beijing seeks to contain financial risks from mounting local government debt. The region plans to issue special refinancing bonds worth 66.32 billion yuan to pay back government debt owed to companies that were issued before 2018, according to government fillings.
Chengdu, the capital of southwestern China’s Sichuan province, joined more than a dozen of second-tier cities in scrapping home purchase limits in certain areas to help bolster the ailing property market. The city of nearly 10 million people dropped purchase limits in five districts and relaxed restrictions in seven others, according to a notice issued Tuesday by the city’s housing and urban-rural development bureau.
Freshippo, the grocery and fresh goods retail chain under Alibaba Group, opens its first premium store on Wednesday in Shanghai, making its foray into the nation's high-end super market sector. Located in Shanghai's Changning district, the store takes up more than 6,000 square meters and offers a mixture of global and local products.
German chemical giant Wacker Chemie plans to invest EUR150 million to expand its specialty silicone manufacturing capacity in China. Wacker will hike the capacity of its production base in Zhangjiagang, Jiangsu province, to meet Chinese clients’ constantly growing demand for specialty silicone products, the company announced yesterday. The new capacity will be put into operation by the second half of 2025.
Hong Kong Exchanges and Clearing has launched a six-week public consultation on listing reforms for its Growth Enterprise Market (GEM) board, and expects the new rules to take effect as soon as early next year. The proposals include a new streamlined mechanism for eligible GEM companies to transfer to the main Board, an alternative eligibility test for companies in the high-growth segment, and removal of the quarterly reporting requirement for GEM-listed firms.
The bilateral linkage between Hong Kong's Faster Payment System and an instant payment platform in Thailand is expected to be launched by this year, said Howard Lee Tat-chi, deputy chief executive of the Hong Kong Monetary Authority. Hong Kong residents will then be able to make retail payments with the FPS in Thailand, while visitors from Thailand can use their equivalent faster payment system, PromptPay, in Hong Kong, Lee said at a seminar yesterday. Launched in September 2018, the FPS recorded 12.81 million registrations as of last month, with an average annual growth of 36 percent, HKMA said.
US authorities have given permission for China’s three biggest carriers -- Air China, China Eastern Airlines, and China Southern Airlines -- to add more flights between the two countries. Air China can add a flight between Beijing and Los Angeles and two between Beijing and San Francisco each week from Oct. 29, the US transport department said yesterday. China Eastern can add two weekly flights between Shanghai and San Francisco and China Southern one between Wuhan and San Francisco, making the capital of Hubei province the latest Chinese city to have direct flights to the United States.
CATL, the world's largest electric vehicle battery manufacturer, has once again refuted media reports of its partner Ford Motor halting the construction of a USD3.5 billion electric vehicle battery plant in the United States. "It is false news, and construction is smoothly underway," media reported, citing an employee of the battery maker's securities department. The BlueOval Battery Park Michigan project was slated to have an annual capacity of about 35 gigawatt-hours of batteries when production begins in 2026, according to Ford's statement in February.
宁德时代澄清与福特在美建厂计划推进顺利：26日消息，有报道称，福特打算暂停宁德时代与福特汽车的35亿美元电池合作项目建设。对于宁德时代证券部工作人员回应称：“是虚假消息，我们推进是顺利的。”今年2月，宁德时代与福特宣布建立合作伙伴关系，双方将在美国密歇根州建造电池工厂 Blue Oval Battery Park Michigan，旨在生产新型磷酸铁锂电池，计划于2026年开始运营，年产能可达35GWh。
Alibaba Group Holding's international e-commerce platform AliExpress and its courier unit Cainiao Smart Logistics Network have launched a five-day global delivery service in five overseas markets as part of a first batch. Consumers from the UK, Spain, the Netherlands, Belgium, and South Korea can place orders for goods with the “five-day delivery” label in the choice channel of AliExpress, Alibaba's two units announced yesterday. The parcels from China will be received within five working days, they added.
China's yuan held onto most of its gains having opened firmer on Wednesday after the central bank reiterated its commitment to keeping the currency stable. The People's Bank of China said, in a statement after a quarterly meeting of its monetary policy committee, that it would "resolutely prevent currency overshooting risks and keep the yuan basically stable at reasonable and balanced levels". Meanwhile, the central bank has vowed to intensify the implementation of the monetary policy tools that have been introduced to ensure a reasonably ample level of liquidity while encouraging a rebound in price levels to maintain them within a reasonable range. As for the property market, the central bank will lower down payment thresholds as well as mortgage rates of second homes, putting the policy of reducing interest rates for existing first-home mortgages into place in order to aid the real estate industry in building a new development strategy.
Stock exchanges on the Chinese mainland are rolling out new measures in accordance with a directive issued by the securities regulator last month to rein in major stakeholders in listed companies that are trading below par from reducing their equity to help boost investor confidence and spur the ailing stock market. Controlling shareholders and actual controllers will not be allowed to sell stocks through centralized bidding or block trading without disclosing their share reduction plans in advance, the Shanghai and Shenzhen bourses said yesterday. And for those who do declare such plans, they must finish the paring of their stake within three months.
Chinese stocks rebounded on Wednesday as the benchmark Shanghai Composite added 0.2 percent and the Shenzhen Component gained 0.4 percent. Hong Kong’s Hang Seng index also bounced 0.8 percent, while the TECH index rose 0.4 percent.
China continued to stay at top of the medal race at the 19th Asian Games in Hangzhou with 70 golds, 39 silvers and 16 bronzes as of 5 p.m. Wednesday. Earlier today, the 13-year old Cui Chenxi became China’s youngest ever champion at the Asian Games, winning women’s street skateboarding, while teammate Zhang Jie claimed the men’s title of the same sport. Zuo Tong gained victory in women’s all-round artistic gymnastics. In sailing, Chen Jingyue claimed the title in women's kite - IKA formula kite final, while Huang Xianting and Bi Kun each won women's and men’s windsurfing - iQFoil final. In shooting, Jiang Yiting won skeet women's final and Liu Rui clinched gold in 25m pistol women's final. In Wushu, Lai Xiaoxiao was champion of women’s Quanshu final, and Chang Zhizhao added a gold in men’s Gunshu final. As for the Chinese team, three golds were added in skeet-50 team men (phase 2), 50m rifle 3 positions team women and women’s beach volleyball respectively.
Biz Word of the Day
A block trade is a large, privately negotiated securities transaction. Block trades are arranged away from public markets to lessen the effect on the security's price. They are usually carried out by hedge funds and institutional investors via investment banks and other intermediaries, though high-net-worth accredited investors may also be eligible to participate.
Executive Editor: Sonia YU
Editor: LI Yanxia
Host: Stephanie LI
Writer: Stephanie LI
Sound Editor: Stephanie LI
Graphic Designer: ZHENG Wenjing, LIAO Yuanni
Produced by 21st Century Business Herald Dept. of Overseas News.
Presented by SFC