chinese machinary      chinese equipment      
Main page | News | Guestbook | Contact us
Русская версия

Food products
Building materials
Leisure and garden inventory
Medicine and public health
Gas and gas equipment
Oil equipment
Chinese Silk
Underwear, T-shirts
Various production line by Customers order
Silver coins

Contact us
Tel: +86 13903612274

News from China
The Bank of China halts trading in 'oil treasure'
23rd April 2020

 The Bank of China said yesterday it had suspended transactions to open new positions for its crude oil futures trading product effective immediately, following other banks in curtailing energy products.

Known as crude oil “bao,” or treasure, the structured product is sold by BOC to individual customers and is linked to domestic and foreign crude futures, including West Texas Intermediate and Brent.
The move came in light of “current market and delivery risks,” BOC said in a statement.
Oil markets suffered turmoil this week after WTI futures collapsed below US$0 a barrel on Monday for the first time in history because of a supply glut following a drop in demand amid restrictions to prevent the spread of the coronavirus. Futures fell to minus US$37.63 a barrel as desperate traders paid to get rid of oil.
The BOC suspended trading in both of its US crude oil contract products for one day on Tuesday.
Brent crude has fallen 72 percent this year because of the impact of the coronavirus pandemic and after major producer Saudi Arabia started a price war, leading Chinese banks and funds to adjust or limit trading in oil-related products and investments.
The Industrial and Commercial Bank of China last month adjusted the bid-ask spread on global crude after prices hit a 17-year low.
Source: Shanghai Daily, April 23, 2020
China to free up more funds to better serve small firms
22nd April 2020

 The State Council's executive meeting chaired by Premier Li Keqiang on Tuesday decided to give greater weight to inclusive financing in evaluating the performance of financial institutions, and lower the provision coverage ratio of small and medium-sized banks so as to boost financial services for micro and small firms.

The Chinese government puts great emphasis on the economic development amid the global spread of COVID-19. Li has repeatedly urged upgrading financial services in support of the real economy.
Since the start of the COVID-19 situation, the People's Bank of China, China's central bank, has cut the required reserve ratio three times this year, releasing 1.75 trillion yuan (US$246.7 billion) in liquidity to better support smaller businesses.
"We must scale up financial support for the real economy, especially the micro, small and medium-sized companies, to help them overcome the difficulties," Li said.
It was decided on Tuesday that the regulatory requirement for the provision coverage ratio of small and medium-sized banks will be lowered by 20 percentage points, to free up more credit resources and boost the capacity for serving micro and small companies.
To encourage financial institutions to better serve micro and small businesses, the meeting decided to raise the weight of inclusive finance to no less than 10 percent in the integrated performance evaluation of the branches and subsidiaries of financial institutions in the banking sector, to incentivize more lending to micro and small firms.
"Financial departments must adjust and adapt the support polices in light of the changing COVID-19 situation and economic conditions. The policies introduced need to be targeted and robust," Li said.
To ease the rent burden on micro, small and self-employed businesses, the meeting called for a three-month rent exemption in the first half of this year for such firms in the services sector renting state-owned properties.
The meeting urged state-owned enterprises, especially those directly under central management, and public institutions such as colleges, universities and research institutes, to take the lead in offering such rent relief. State-owned banks will be encouraged to extend pledge loan at concessional rates to such lessors according to their needs.
Source: Shanghai Daily, April 22, 2020
US oil prices plunge to negative territory on dual demand-supply shock
21st April 2020

 The soon-to-expire May contract for the US oil benchmark went into a free fall to finish deeply in negative territory on Monday, as the energy market continued to reel from the dual demand-supply shock amid the COVID-19 pandemic.

The West Texas Intermediate for May delivery shed US$55.9, or nearly 306 percent, to settle at US$-37.63 a barrel on the New York Mercantile Exchange. The negative finish means producers would be paying buyers to take oil off their hands.
It marks the first time an oil futures contract has traded negative in history, according to Dow Jones Market Data. The May contract expires on Tuesday.
The June WTI contract fell more than 18 percent to 20.43 per barrel. The global benchmark Brent crude for June delivery decreased 2.51 dollars to close at US$25.57 a barrel on the London ICE Futures Exchange.
Exchange-traded funds with oil-related assets also dipped noticeably on Monday due to the crude price crash. Meanwhile, Wall Street's major averages tumbled with the Dow closing down nearly 600 points. The S&P 500 energy sector slid 3.29 percent, among the worst-performing groups.
Traders tried to unload positions ahead of the contract's expiration, contributing to the historic drop, experts noted. On Monday, traders with long positions scrambled to get out amid fear that it would be difficult to find a place to park physical oil amid a rising glut of crude.
"We attribute the WTI price weakness to the imminent expiry of the May contract tomorrow," Giovanni Staunovo, a commodity analyst at UBS Global Wealth Management, told Xinhua on Monday.
Weaker demand tied to the COVID-19 pandemic and a potential supply glut is a more severe problem.
"The decline in more liquid futures contracts reflects the broader problem we have in the oil market — severe oversupply in 2Q," said Staunovo, adding that with oil inventories trending higher over the coming weeks, the June contracts are likely to stay under pressure.
For the energy world, the knock-on economic effect from the pandemic was an immediate deep impact on global demand, sending fuel prices plummeting, said researchers at Columbia University's Center on Global Energy Policy.
Major oil producers have announced cutbacks in production in hopes of stabilizing the energy market, but many analysts say it is not enough to offset the pandemic shock.
The Organization of the Petroleum Exporting Countries and its allies led by Russia, a group known as OPEC+, agreed to reduce output by 9.7 million barrels per day for May and June after four days of talks.
Global oil demand is expected to fall by a record 9.3 million bpd year-on-year in 2020, the International Energy Agency warned in its newly released monthly report.
The IEA said demand in April is estimated to be 29 million bpd lower than a year ago, down to a level last seen in 1995, due to COVID-19 as containment measures have brought mobility almost to a halt.
"We are also running out of places to store oil as demand has cratered," Chris Low, chief economist at FHN Financials, said in a note on Monday.
The WTI continued to come under heavy pressure as inventories in Cushing, a key US oil hub, have ballooned, while Midwestern refining margins tanked, noted experts at JBC Energy.
Inventories have ballooned by 48 percent to about 55 million barrels, according to a recent report from the Energy Information Administration. Capacity at the hub is about 76 million barrels, according to the IEA.
Many analysts believe headwinds remain on the energy market in the foreseeable future.
"We think it is too early to become outright bullish on the oil and gas sector given the many uncertainties around the supply and demand factors," market strategists at UBS said in a research note, adding there are still opportunities in risks.
"We are also convinced that the global oil industry will survive this crisis and that the recent sell-off has created opportunities in the sector," they said.
Source: Shanghai Daily, April 21, 2020
China's industrial output falls 8.4% in Q1
17th April 2020

 China's value-added industrial output, an important economic indicator, fell 8.4 percent in the first quarter of this year, as the novel coronavirus outbreak deals a huge blow to industrial production, data from the National Bureau of Statistics showed on Friday.

Output by the manufacturing industry went down 10.2 percent, while the production and supply of electricity, thermal power, gas and water reported a year-on-year decrease of 5.2 percent.
The mining sector saw output down by 1.7 percent in the period.
In a breakdown by ownership, the output of state-controlled enterprises went down 6 percent, that of joint-stock companies down 8.4 percent, and that of overseas-funded enterprises dropped by 14.5 percent.
In Q1, output by the private sector went down 11.3 percent year on year.
The industrial output is used to measure the activity of designated large enterprises with annual business turnover of at least 20 million yuan (US$2.82 million).
Source: Shanghai Daily, April 17, 2020

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 169 170 171 172 173 174 175 176 177 178 179 180 181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 196 197 198 199 200 201 202 203 204 205 206 207 208 209 210 211 212 213 214 215 216 217 218