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those with ratings that have been withdrawn, the report warned.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

Daily)

     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, Tianmao.com, 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 JD.com 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)

--MNI Beijing Bureau; +86 (10) 8532 5998; email: marissa.wang@marketnews.com

--MNI BEIJING Bureau; +1 202-371-2121; email: john.carter@mni-news.com

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