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  • Boehringer opens China tech center

    German pharmaceutical company Boehringer Ingelheim yesterday unveiled its External Innovation Hub in Shanghai.In the next five years, the company will invest 451 million euros (US$507.9 million) in China in clinical research, production expansion and other research partnerships.“Boehringer Ingelheim will continue to increase investment in China, including setting up the External Innovation Hub.“The hub will become one of Boehringer Ingelheim’s strategic pillars,” said Felix Gutsche, president and CEO of Boehringer Ingelheim China.The company expects to have 71 new products approved in China by 2030.“COVID-19 has highlighted the importance of digital services.“And our latest digital initiative hopes to integrate all the methodology and technology with real business needs,” he told Shanghai Daily.“China is the first market to see business rebound after the coronavirus outbreak.”

    Posted: by Shanghai Daily

  • Shanghai acts to help businesses in bid to stabilize city’s economy

    Shanghai has launched 18 key measures to improve financial support for business, reduce corporate funding costs and stabilize the local economy.The Guiding Opinions were formulated by the Shanghai headquarters of the People’s Bank of China, together with the Shanghai Bureau of the China Banking and Insurance Regulatory Commission, the Shanghai Financial Regulatory Bureau, the Shanghai Commission of Economy and Informatization and several other departments.Measures include increasing monetary policy incentives, strengthening direct and indirect financing, reducing the financing costs of small and micro enterprises and cutting taxes and fees for businesses.About 12 billion yuan (US$1.69 billion) of bailout loans will be budgeted for enterprises and cooperation between local governments and banks will be deepened.The Shanghai Pudong Development Bank, the Bank of Shanghai and Shanghai Rural Commercial Bank are encouraged to grant preferential loans to qualified enterprises.And interest shall be reduced by at least 25 basis points from the prime rate during the same period.The prime rate was introduced by the central bank in August, 2019 and is the only benchmark rate for banks’ new lending.Lenders and their clients can negotiate a floating rate higher or lower than the benchmark.Financial institutions are encouraged to set up loan renewal service centers, and increase the loan renewal ratio of small business.The Guiding Opinions also emphasize increasing support in key areas.These include foreign trade and giving full play to the role of insurance guarantees.

    Posted: by Shanghai Daily

  • Special bonds to aid smaller banks

    China will allow special local government bonds to support small and medium-sized banks in replenishing capital, in the latest move to strengthen financial support for enterprises. The country will focus on improving financial services offered to micro, small and medium-sized enterprises, according to a State Council executive meeting presided over by Premier Li Keqiang on Wednesday. The meeting has decided to grant certain quota to local governments this year to explore new capital replenishment channels for the banks, including subscriptions for convertible bonds. Accounting for 99 percent of banks, small and medium-sized banks have faced mounting pressure on lending capacity and capital consumption due to COVID-19 strains. “It was a timely and important move for the country to innovate capital replenishment tools for small and medium-sized banks,” said Dong Ximiao, a researcher with the National Institution for Finance and Development. It is also conducive to enhancing the willingness and ability of small and medium-sized banks to serve the real economy, especially micro, small and medium-sized enterprises and private firms. The meeting urged local governments to give priority to small and medium-sized banks.

    Posted: by Shanghai Daily

  • Stocks maintain rally

    Chinese stocks continued to rally yesterday on a good day for investors. Total trading volume on the two bourses came to 1.08 trillion yuan (US$152.8 billion), a four-month record. The benchmark Shanghai Composite Index climbed 2.13 percent to close at 3,090.57 points, boosted by blue chips such as financials and property developers. The smaller Shenzhen Component Index gained 1.29 percent to finish at around 12,269.49 points, while the ChiNext Index edged up 0.2 percent to end on 2,424.39. Non-banking financial institutions, real-estate firms and infrastructure construction were mostly higher. Zhongtai Securities, China Merchants Securities and 13 other securities brokers saw their shares jump by the daily limit. Part of the local government special bond issuance quota will be used to replenish the capital of small and medium-sized banks, according to a State Council note yesterday. Small lenders, especially those in relatively poor inland regions, are a weak spot in the financial system, said Nomura. It expects Beijing to provide more support for banks, especially smaller players, as they play an important role in funding small private firms and low-income individuals which have suffered more from the COVID-19 pandemic.

    Posted: by Shanghai Daily

  • Talk before visiting that car dealer

    Contacts between car buyers and dealers before meeting are critical for automakers to win sales, according to a report by consulting firm J.D. Power yesterday.Car buyers who rejected a brand in talks with dealers before going to the car yard with dealers increased to 19 percent in 2020, up from 4 percent in 2017.Concerns about products are the main reasons for customer loss in the pre-visit phases. Of concern are features of the model and vehicle appearance not meeting expectations.The study, from November 2019 through April 2020, is based on 23,151 responses from vehicle owners from 70 cities across China.“Customers are likely to make less informed decisions if they do not have hands-on experience with vehicles,” said Eileen Ren, vice president of digital customer experience at J.D. Power China.“That is why dealers need to help customers get a better understanding of the vehicle in pre-visit communications.”

    Posted: by Shanghai Daily

  • What are Hongkongers going to do with their HK$10,000 payout? Bet on the stock market, from the looks of it

    Starting this week, each permanent resident of Hong Kong will be eligible to receive HK$10,000 (US$1,290) in a one-time cash payout, part of the government’s HK$55 billion financial stimulus to help the city survive its worst recession on record.Hong Kong’s Financial Secretary Paul Chan Mo-po, the architect of the financial disbursement, would prefer the city’s residents to spend that money dining out, shopping, travel locally or pay for their utility bills. Chances are that Hongkongers will…

    Posted: by South China Morning Post

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