China Daily.com, September 3rd. Recently, US media reported that China's financial market has further opened up, domestic demand has driven new orders, the service industry has continued to recover, and truck sales have also surged.
All signs indicate that China's economy continues to improve and the pace of opening up continues to accelerate.
China's financial market further opens up
"The Wall Street Journal" reported on September 2 that Citigroup has become the first U.S. bank to qualify as a fund custodian in China.
This license will help Citi take advantage of the huge opportunities in China's capital market.
US Consumer News and Business Channel (CNBC) reported on September 2 that despite the growing political tensions between the two countries, from regulatory approvals to business decisions, major US financial giants are entering the Chinese market.
Citigroup is also the first bank to obtain a license among the world's five largest custodians.
According to the report, in the past two years, the Chinese government has accelerated the pace of allowing foreign capital to enter its previously relatively closed financial market. Relaxing ownership restrictions and issuing business licenses to US financial institutions are also part of the first phase of the Sino-US economic and trade agreement.
Last week, BlackRock was approved by the China Securities Regulatory Commission to establish a wholly-owned public fund management company in Shanghai, paving the way for the world’s largest asset management company to be among the first foreign companies to manage personal wealth in China .
Bloomberg reported on September 3 that the China Banking and Insurance Regulatory Commission approved the establishment of a wholly-owned currency brokerage (China) company in Beijing by Japan's Ueda Yagi Short Capital Co., Ltd.
Domestic demand drives new orders and the service industry continues to recover
US Consumer News and Business Channel reported on September 2 that industry surveys showed that China's service industry has maintained a recovery momentum for four consecutive months in August, and companies have expanded recruitment for the first time since January.
The service industry accounts for about 60% of the total economy and half of urban employment.
The service industry initially resumed growth at a slower rate than large manufacturers, but in recent months, as the epidemic’s restrictions on public gatherings have been lifted, its recovery has accelerated.
After six months of layoffs, the company began hiring more employees in August, which shows that the Chinese labor market has recovered.
Domestic demand drove new orders. The survey showed that despite the slowdown, Chinese service companies received new orders for export business in August. The outlook for the service industry is optimistic.
China truck sales surge
The Wall Street Journal reported on September 2 that, according to data from the China Association of Automobile Manufacturers, China's truck sales in July surged 71% year-on-year, marking the third consecutive month of growth of more than 50%. The growth rate of heavy truck sales is even faster, reaching 84%. This performance far exceeds the sales of passenger cars that have just begun to recover. There are obvious policy reasons behind this surge. In order to eliminate older trucks with lower emission standards, some local governments have provided subsidies. In addition, many places in China may ban some of the most polluting trucks on the roads this year, and stricter inspections on overloaded trucks may also contribute to a surge in truck sales.