MNI China Press Digest Oct 10: New Loans, Implicit Debt, Chips

Highlights from Chinese press reports on Tuesday:

• New yuan loans are expected to continue to pick up in September as pro-growth policies kick in, while coupled with the increase in government bond issuance, total social financing is also likely to achieve y/y growth. New loans are estimated to rise further to CNY2.6 trillion, as bill interest rates surged higher during the month, said Sun Binbin, analyst at Tianfeng Securities. Aggregate finance may rise to CNY4 trillion, as net government bond financing could reach CNY1 trillion and act as a main driving force, said Dong Qi, analyst at Guotai Junan Securities. The People’s Bank of China is set to release the latest financial data this week. (Source: China Securities Journal)
• Six provincial governments including Inner Mongolia, Tianjin, Liaoning, Chongqing, Yunnan, and Guangxi have released plans to issue a total of CNY320 billion refinancing bonds to swap out implicit debts. The authorities have approved the debt swapping plan to mitigate local-debt risks and assigned quota to different provinces, which will exceed CNY1 trillion in total and tilt towards 12 debt-strapped provinces. (Source: 21st Century Business Herald)
• Samsung Electronics and SK Hynix will be allowed to supply U.S. chip equipment to their China factories indefinitely without separate U.S. approvals, South Korea’s presidential office said on Monday. As the world’s largest two memory chip manufacturers, both companies have engaged in the Chinese market for years and invested billions of dollars. Samsung Electronics produces NAND flash memory in Xi'an city, while SK Hynix produces DRAM chips in Wuxi city and NAND flash memory in Dalian city. (Source: Quanshang China)