• Following successful trials in several free trade zones, China’s top legislature on Monday began its first reading of a draft amendment to the Law on Foreign-Capital Enterprises, the Law on Chinese-Foreign Equity Joint Ventures, the Law on Chinese-Foreign Contractual Joint Ventures, and the Law on the Protection of Investment of Taiwan Compatriots: Xinhua
  • Chinese private investment funds will conduct a “self-inspection” of their business practices in compliance with a directive from the State Council: the Asset Management Association of China
  • China’s banking system faces a systemic risk from a significantly increased reliance by small and mid-tier lenders on interbank funding: Moody’s
  • China’s stock exchange is studying how to raise the bar for enterprises in the real estate sector and industries suffering from overcapacity to issue corporate bonds: Caixin
  • The  China Banking Regulatory Commission is studying policies of requiring banks to set aside capital for off-balance sheet business: Caixin
  • The Shenzhen-Hong Kong stock connect is expected to be opened in mid-to-late November: etnet
  • New orders in China’s shipbuilding industry in the first seven months increased 26.2% year on year: China Shipbuilding Industry Association
  • Analysts at Scotiabank said “after G-20 ends next Monday, the market may want to test how much yuan depreciation the PBOC can tolerate,” adding that “China doesn’t want the yuan to move too much during G-20 and become a topic of discussion. SDR’s impact will be smaller than G-20.”
  • The Shanghai index closed 0.04% higher by the midday break, while the Shenzhen index climbed 0.18% and the ChiNext index rose 0.31%