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Keywords summary
Hong Kong’s Chief Executive John Lee delivers maiden policy address on Wednesday;
China's "big three" gas suppliers ramp up output to ensure winter supply.
Greater Bay Area, Greater future
New mission, Big Future
Chief Executive of the Hong Kong Special Administrative Region (HKSAR) John Lee pledged to attract enterprises, investment and talents to enhance competitiveness as he delivered his first policy address on Wednesday.
"We must be more proactive and aggressive in 'competing for enterprises' and 'competing for Talents,'" as Hong Kong is one of the most competitive economies in the world and also serves as an important gateway connecting the Chinese mainland with global markets, Lee said.
The CE announced a new Hong Kong Investment Corporation Limited (HKIC) consolidating the Hong Kong Growth Portfolio, the GBA Investment Fund and the Strategic Tech Fund to further optimize the use of fiscal reserves for promoting the development of industries and the economy.
Also, an Office for Attracting Strategic Enterprises as well as Talents Service Unit will be set up to attract mainland and overseas enterprises, he said. The government will set aside HK$30 billion from the Future Fund to establish the Co-Investment Fund for attracting enterprises to set up operations in Hong Kong and investing in their business.
In a multi-proged approach to stem brain drain and encourage overseas talent to settle in the city, a program named Top Talent Pass Scheme will be launched, existing talent admission schemes will be enhanced, employment visas will be extended to a maximum of three years, and non-local graduates will be allowed to remain in the city for two years instead of one. The government will also make a pilot scheme that encourages enterprises in the GBA to hire Hong Kong university graduates.
Also, the annual quota of 4,000 under the Quality Migrant Admission Scheme (QMAS) will be suspended for two years and eligible incoming talent, upon becoming permanent residents, will be allowed to apply for a refund of the extra stamp duty paid for purchasing residential property in Hong Kong.
Meanwhile, pointing out how national strategies including the 14th Five-Year Plan, the Greater Bay Area development plan and the Belt and Road Initiative had boosted the growth of Hong Kong, Lee said: "Our priority is to reform our position as an international financial centre, and promote the development of two emerging industries, namely IT and arts and culture." He said HK$10 billion will be earned to launch the "Research, Academic and Industry Sectors One-plus Scheme" (RAISe+ Scheme) next year.
htmlOn October 19, Hong Kong Special Administrative Region Chief Executive Li Jiachao delivered his first policy address during his term, proposing a series of new measures to attract investment and talents to strengthen Hong Kong's competitiveness.
Policy Address proposes that the Hong Kong Special Administrative Region Government will set up multiple units to recruit enterprises and talents to develop in Hong Kong, and optimize a number of input talent plans to strengthen attractiveness. Li Jiachao said that Hong Kong, China, is one of the most competitive economies in the world, and is also an important window for mainland China to connect with the international market. Therefore, must "grab enterprises and talents" more actively and aggressively.
In terms of the "governance system" of investment by the SAR government, the Financial Secretary has instructed the establishment of the new "Hong Kong Investment Management Co., Ltd." to further make good use of fiscal reserves to promote industrial and economic development, and to store the "Hong Kong Growth Portfolio", " Greater Bay Area Investment Fund" and "Strategic Innovation and Technology Fund" established under the "Future Fund" in recent years, as well as the newly established " Co-Investment Fund " in , gather relevant resources, and the government will lead the investment strategy industry to attract and help more enterprises develop in Hong Kong. plans to allocate 30 billion yuan from the future fund to establish a joint investment fund to introduce and invest in enterprises settled in Hong Kong.
In addition, the Hong Kong SAR Government will set up a "Industry, Academic and Research 1+ Plan" , starting next year, funding no less than 100 university R&D teams with potential to become start-ups to complete their projects in two phases: the first phase is to successfully transform and implement scientific research results within three years, and the second phase is to commercialize scientific research results within the next two years.
Li Jiachao pointed out that in addition to actively cultivating and retaining local talents, the Hong Kong SAR government will also absorb foreign talents with a more enterprising attitude. One of the measures is to establish a talent service window led by the Secretary for Administration, which is responsible for formulating and coordinating strategies and work to recruit mainland and overseas talents, and providing one-stop support to talents coming to Hong Kong, with the goal of attracting at least 35,000 talents each year.
In addition, the Hong Kong SAR government will launch a two-year high-end talent pass program . Regarding general employment policies and the import of mainland talent plans, the SAR government will relax a number of regulations, such as the positions for importing talents belong to 13 majors with local talent shortages, etc. Employers do not need to prove the difficulty of local recruitment, but can apply directly. The current outstanding talent entry plan will cancel the annual quota for two years and optimize the approval procedures. The provisions for employers to hire additional local employees under will also be revoked to speed up the pace of talent input.
On the other hand, the term of staying in Hong Kong for non-local graduates in has been extended from one year to two years , which facilitates them to stay in Hong Kong for work. In order to encourage foreign talents to stay in Hong Kong for a long time, after qualified persons stay in Hong Kong for seven years and become permanent residents in Hong Kong, they can apply for a refund of the buyer's stamp duty and new residential stamp duty for the first residential property they have purchased and held.
Dongguan has started construction of its first general aviation manufacturing project, which is expected to generate 3.5 billion yuan ($486 million) in annual output value upon completion with the capacity of producing 200 to 400 aircraft a year, including high-end jet aircraft and turboprop aircraft. With a $520 million investment by the Hong Kong unit of US aircraft Manufacturer AeroTranscendent and several overseas investment institutions, the project is expected to contribute 140 million yuan to local tax revenues annually and generate 1,100 jobs.
Dongguan The first general aviation manufacturing project started: html On the 219th, the Dongguan Xiegang General Aviation Manufacturing and Supply Chain Project officially started, and Dongguan’s ambition opened a new chapter, including propeller to jet general aircraft, the estimated annual output is 200~400 aircraft. The total investment of the project is US$520 million, with a total area of about 172.65 mu. After completion, it is expected to have an annual output value of RMB 3.5 billion and an annual tax revenue of RMB 140 million. After entering operation, 1,100 talents will be introduced within two years, of which the number of talents introduced by undergraduate or above accounts for no less than 95%.
Next on industry and company news
Industry and company news
China’s three oil and gas titans are increasing their output of natural gas to ensure adequate supply to the country’s northern regions. CNOOC has hiked daily output by over 3 million cubic meters year-on-year through more refined management of over 200 Offshore gas wells, China’s biggest offshore oil and gas producer said yesterday. China National Petroleum Corp.’s Changqing Oilfield runs the biggest natural gas facility in China, supplying around a quarter of the country’s needs. Output has increased by 10 million cubic meters a day this year, compared with a year earlier. Sinoopec has discovered new shale gas reserves in the Sichuan Basin in southwest China, with a daily output of 258,600 cubic meters, the firm said yesterday.
" three barrels of oil " will increase production and supply guarantee for natural gas this winter: 18 media reported that domestic oil and gas companies are constantly increasing their efforts to explore and develop and increase their production, and based on the domestic market, they will increase their supply potential and enhance their natural gas production guarantee capabilities. CNOOC continues to increase its efforts in sea and land exploration and development, and is expected to supply about 10 billion cubic meters of domestic gas this winter and next spring. Since the beginning of this year, based on the highest daily gas supply of last year, CNPC Changqing Oilfield has increased its natural gas production by another 10 million cubic meters per day. The annual gas production of in Changqing Oilfield accounts for about one-quarter of the country. The Jinshi 103HF exploration well deployed by Sinopec Southwest Petroleum Bureau in , the Sichuan Basin of , obtained high-yield and stable industrial gas flow, with a daily output of 258,600 cubic meters of natural gas, and the geological resource volume was 387.8 billion cubic meters.
CATL announced on Tuesday that it has entered a sole battery supply agreement with Primergy Solar LLC for a record $1.2 billion GEMini solar+storage project outside of Las Vegas, Nevada. Once completed, Gemini will be one of the largest operational solar+storage projects in the United States. CATL will supply Primergy Solar with EnerOne, a modular outdoor liquid cooling battery energy storage system.
CATL won US$1.2 billion in optical storage order : On October 18, CATL announced an agreement with Primergy Solar LLC (Primergy), a US utility and distributed photovoltaic + energy storage developer operator, Primergy Solar LLC (Primergy), to exclusively supply batteries for Gemini photovoltaic + energy storage project. The Gemini project is located near Las Vegas with a total investment of US$1.2 billion. After the project is completed, it will become one of the largest photovoltaic energy storage projects in the United States. CATL will provide Primergy with an outdoor liquid-cooled energy storage cabinet EnerOne, a star product of CATL's energy storage solutions, using lithium iron phosphate battery cell.
China's Sunshine Insurance Group is planning to seek Hong Kong stock exchange approval for its initial public offering as soon as next week, which could raise about US$1 billion (HK$7.8 billion), according to media report on Wednesday. Sunshine Insurance has won the approval of China's securities watchdog for its Hong Kong listing plans to sell a maximum of 3.97 billion shares in the offering.
Sunshine Insurance is expected to issue shares in Hong Kong as soon as next week: On October 19th media reports, Sunshine Insurance Group will issue its initial public offering in Hong Kong as soon as next week, with a fundraising amount of approximately US$1 billion, equivalent to approximately HK$7.8 billion, and is expected to be listed as soon as next month. The company has submitted pre-listing documents to the Hong Kong Stock Exchange in April this year, and has been approved and authorized by of the China Securities Regulatory Commission to issue no more than 3.97 billion H shares, with a face value of RMB 1 per share, all of which are common shares.
Sinomine Resource Group, a leading Chinese supplier of battery-grade lithium fluoride, is looking to expand its source of raw lithium ore and has entered discussions with Canada’s Grid Metals about the possible joint development of a local lithium mine. The partnership will help Sinomine to expand its mineral resources, ensure supplies to its unit Tanco’s new mineral processing plant and boost profitability, the Beijing-based firm said late Tuesday.
China Mining Resources Expansion Canadian Mining Source: On the evening of October 18, China Mining Resources announced that recently, Tanco, wholly-owned company, signed a memorandum of understanding with Canadian listed company Grid. The two parties will sign a legally binding cooperation agreement, with Grid supplying spodumene ore to Tanco. Tanco is responsible for the smelting and spodumene concentrate sales, and the two parties share the profits in the agreed manner. The main pegmatite of the Donner Lake lithium mine and the northwest pegmatite have been found in a total of 3.5 million tons of ore.
Earnings reports express
Financial Report Express
Hong Kong’s stock exchange reported a 30 percent decline in third-quarter profits, its sixth consecutive quarterly decline, as market turmoil drags down trading and initial public offerings. Net income for the three months that ended in September at the Hong Kong Exchanges Clearing Ltd. (HKEX) dropped to HK$2.26 billion from HK$3.25 billion a year earlier, according to a statement on Wednesday. "However, there are early signs of renewed momentum in the IPO market, a buoyant derivatives market and continued strength in both Stock Connect and Bond Connect. We are positioned well for when market sentiment recovers," HKEX CEO Nicolas Aguzin said in the statement.
The Hong Kong Stock Exchange's third-quarter net profit was HK$2.263 billion : On October 19, the Hong Kong Stock Exchange released its third-quarter financial report. Revenue and other income in the third quarter of 2022 were HK$4.318 billion, down 19% from the third quarter of 2021; net profit attributable to shareholders was HK$2.263 billion, down 30% from the third quarter of 2021. The CEO of the Hong Kong Stock Exchange Group Champions League Sheng said: "The Hong Kong Stock Exchange has achieved great results in the third quarter of 2022. During the period, it announced or implemented a number of important strategic measures, including: ETFs are included in the interconnected and qualified securities, and began to prepare for the 'swap', the establishment of the Hong Kong International Carbon Market Committee, and the launch of a series of new products and market optimization measures."
Switching gears to financial news
Financial market news
The HKEX will revise the Main Board Listing Rules next year to facilitate the fundraising of advanced technology enterprises that have yet to meet the profit and trading record requirements, Hong Kong’s leader John Lee said Wednesday. It is also planning to revitalise GEM (formally known as the Growth Enterprise Market) to provide small and medium enterprises (SMEs) and start-ups with a more effective fundraising platform. The HKEX also said in a statement today that it had launched a two-month consultation to make it easier for tech specialist companies to float in the market.
Hong Kong Stock Exchange will modify the main board listing rules next year : On the 19th, the Chief Executive of the Hong Kong Special Administrative Region Li Jiachao mentioned in his 2022 Policy Address that Hong Kong Exchange and Clearing House Co., Ltd. (HKEX) will modify the main board listing rules next year to facilitate financing of advanced technology companies that have not yet made profits or performance support; at the same time, it is conceived to activate GEM (formerly known as GEM ) to provide a more effective financing platform for small and medium-sized and start-ups. Hong Kong currently handles about 75% of the global offshore RMB settlement. The government will promote the market to provide more RMB-denominated investment tools, as well as stable and efficient exchange, exchange rate risk and interest rate risk management and other financial services, and optimize market infrastructure. Just after the release of the Policy Address, the Hong Kong Stock Exchange immediately published relevant consultation documents on the listing of technology companies. The document recommends expanding the existing listing system in Hong Kong, allowing special technology companies to come to Hong Kong to list, and seek public opinions on this.
China's big three insurers spent over 10 trillion yuan to support the development of the real economy in the first nine months. China Life invested over 3.3 trillion yuan as a support to the real economy this year as of Sept. 30, the Beijing-based insurer announced Sunday. Ping An Insurance and People's Insurance also said in recent statements that they spent more than 5.9 trillion and 1 trillion yuan, respectively, for the same purpose.
3 major insurance companies serving the real economy transcript : Recently, three leading insurance companies, China Life , China Ping An , and China Insurance , have successively released relevant data on serving the real economy and other services. As of the end of September, the scale of the three insurance companies investing in the real economy exceeded one trillion yuan. An announcement released by China Life Insurance on October 16 showed that as of the end of September, the company's investment in serving the real economy exceeded 3.3 trillion yuan. On October 17, Ping An of China issued an announcement showing that as of the end of September this year, the company has comprehensively used insurance funds and other financial resources, and has invested more than 5.9 trillion yuan in total to support the development of the real economy. On the same day, China Insurance issued an announcement showing that as of September 30, the company's investment and service national strategy totaled more than 1 trillion yuan.
Wrapping up with a quick look at the stock markettml2
Stock market closing
Chinese stocks closed lower on Wednesday, with the benchmark Shanghai Composite ended down 1.19 percent, while the Shenzhen Component fell 1.43 percent. Hong Kong shares also snapped a three-day rally as major tech firms retired while developers pared gains. The Hang Seng dropped 2.38 percent as the Tech Index slumped 4.2 percent.
A shares collectively weakened Hong Kong stocks turned down: Three major A-share indexes opened low and closed low on Wednesday, and accelerated to decline in the afternoon. As of the close, the Shanghai Composite Index fell 1.19%, the Shenzhen Component Index fell 1.43%, and the ChiNext Index fell 0.86%. Hong Kong stocks fell throughout the day, with the Hang Seng Index closing down 2.38%, and the Hang Seng Technology Index closing down 4.19%.
Biz Word of the Day
Financial Vocabulary Focus
Shale gasis natural gas obtained from sheetlike formations of shadows, frequently at depths exceeding 1,500 metres (5,000 feet). Shales are fine-grained sedimentary rocks consisting of silk- and clay-sized particles that were laid down hundreds of millions of years ago as organic-rich mud at the bottom of ancient seas and tidal flats.
Shale gas is a natural gas hidden in the shale layer with free and adsorption as the main means of distribution, and the adsorption process is characterized by physical adsorption, spontaneous progress and exothermic heat.
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