MNI China Press Digest Nov 2:  Yuan, Q3 Profit, Faster Listing

The following lists highlights from Chinese press reports on Monday:

China should keep the current limit on the yuan's movement to 2% to avoid sending a misleading signal which might encourage speculation, wrote Sheng Songcheng, a former counsellor of the People's Bank of China, in an article published by the International Economic Review. China should beware of fast capital inflows and the quick appreciation of the yuan while relaxing restrictions to facilitate outbound investments, Sheng said.

China's 4,066 public companies reported CNY CNY1.27 trillion in combined profits from Q3 as of Nov. 1, up 18% y/y, and confirming the recovering macro indicators reported by the government, the Economic Information Daily reported on Monday citing data from Wind. Revenues from Q3 gained 6.9% from CNY13.47 trillion, according to the Daily. Around 37.6% of the companies reported a decline in net profits. Upstream businesses, including the resource sector, led the rebound from losses in the previous quarter, while airports and transportation also improved as the pandemic effects waned, according to the data.

China will simplify the initial public offering process for companies by introducing a registration-based screening mechanism that emphasizes companies' disclosures, with the changes extended to all boards, according to a statement by Vice Premier Liu He. China will also improve the market-based interest rate system so policy rates can be extended to all participating companies, according to Liu, who heads the Financial Stability and Development Committee of the State Council.