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Pullback Considered Corrective


Holding Above Recent Lows


BLOCK, Large 3Y Midcurve Put Condor

China Press Digest: Monday, Nov. 13

     BEIJING (MNI) - The following are highlights from the China press for
Monday, Nov. 13
     Banks' entrusted investment businesses are expected to rebound in the
period ahead as the correction in the bond market approaches n end, the
Financial News, a journal run by the People's Bank of China, reported Monday.
Since September, bond entrusted investment funds have seen healthy growth
compared with the sluggish performance in previous months this year,
particularly the public offerings of funds backed by banks, the report said. The
increase is partially due to some funds trying to expand business at the end of
year. In the past year, banks cut back their entrusted investment businesses
under pressure from stricter regulation and a weak bond market, the report
noted, adding some small- and medium-sized banks even suspended their entrusted
investment businesses. (Financial News)
     China needs to prevent potential risks from financial technology
innovations (fintech) given uncertainties about the impact on liquidity, credit
and financial system operations, the Financial News, a journal run by the
People's Bank of China, said in a commentary Monday. Advantages from new
developments in data and technology are causing banks, securities firms and
insurance companies to merge fintech into traditional transaction activity at a
rapid pace, the commentary said. But potential risks have been accumulating and
could spill over to the financial system as a whole, the commentary warned.
There are challenges ahead in optimizing the construction of fintech
infrastructure, improving regulation, building up a relevant legal system as
well as protecting consumer's rights and interests, the commentary said.
(Financial News)
     Investors need to be cautious about a potential price drop of convertible
bonds, as their issuance has been expanding at a rapid pace, the Securities
Daily reported Monday. Given issuers have rights to reduce prices when bonds are
converted into stock, investors could have great difficulty selling stocks at a
profit, the report said, citing people with knowledge of the situation.
Investors should be concerned about a price fall in these bonds, particularly
those with ratings that have been withdrawn, the report warned. (Securities
     China e-commerce platforms set a new sales records during Sunday's Single's
Day online shopping festival, the Shanghai Securities News reported Monday.
Alibaba Group took in a total CNY168.2 billion via its online e-commerce
platform,, within the 24 hours, compared with the previous record of
CNY120.7 billion last year, with the value of sales exceeded CNY10 billion three
minutes after the midnight start of the world's largest sales event. Meanwhile,
fellow on-line shopping giant took in CNY127.1 billion, a 50% increase
compared with Single's Day in 2016, the report said. Updated consumption
capacity and strong consumer sentiment have opened a new era for retail
e-commerce, the report noted.(Shanghai Securities News)
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