Hi everyone. I’m Stephanie LI.

Coming up on today’s program

• China’s central bank reduces LPR and major lenders cut deposit rates;
• CATL jumped 16 percent in its Hong Kong debut as the year’s biggest IPO sizzles.

Here’s what you need to know about China in the past 24 hours

China's one-year loan prime rate (LPR), a market-based benchmark lending rate, was lowered to 3.0 percent on Tuesday, down by 10 basis points, in the central bank's first cut of the rate this year.

The over-five-year LPR, on which many lenders base their housing mortgage rates, dropped to 3.5 percent from the previous reading of 3.6 percent, according to the National Interbank Funding Center.

The cut will further drive down financial costs for companies and Chinese residents, helping bolster market confidence and support the steady growth of the real economy, according to Xinhua News Agency.

These rate cuts come shortly after Beijing unveiled a series of sweeping monetary easing measures aimed at boosting liquidity and supporting growth. 

On May 7, the country’s central bank announced a series of rate cuts, including a reduction in the seven-day reverse repo rate and the interest rates for the standing lending facility, to better implement the moderately loose monetary policy and enhance support for the real economy.

"The cut in LPR, the first round this year, has shown that the comprehensive financial support policies have led to further easing of monetary and credit policies, which in turn has reduced the borrowing costs of medium- and long-term funds," said Yan Yuejin, research director at Shanghai-based E-house China R&D Institute.

"The policy to further reduce interest rate will help lower mortgage loans costs, which also should stimulate the housing consumption demand," Yan said.

In the meantime, China's major state-owned commercial banks and some joint-stock banks announced reductions in deposit interest rates on Tuesday morning.

The one-year fixed-term deposit interest rate was cut by 15 basis points to 0.95 percent, according to the official deposit interest rates released by Industrial and Commercial Bank of China, Bank of China, China Construction Bank, Agricultural Bank of China, and Bank of Communications.

China Merchants Bank, a joint-stock bank based in Shenzhen, also cut its deposit interest rate, with one-year fixed-term deposit interest rate being reduced to 0.95 percent.

• The National Development and Reform Commission (NDRC), China's economic planner, said on Tuesday that China is accelerating the formulation of measures to stabilize employment and the economy, promote high-quality development, and address issues related to excessive competition, which are expected to be implemented by the end of June. Meanwhile, NDRC will introduce a series of measures to attract and utilize foreign capital more effectively, and it will continue to create favorable conditions for multinational companies to invest and grow in China. Moreover, the NDRC will publicize the Private Economy Promotion Law, which took effect today, facilitate the implementation of its supporting policy measures, and address private enterprises' concerns.

GBA express

• China’s leading battery maker CATL made another IPO at the Hong Kong Stock Exchange on Tuesday, with its shares opening 12.5 percent higher at HK$296 and closed up 16.4 percent at HK$306.2. At the debut ceremony on Tuesday, Chairman Zeng Yuqun noted the listing also marks “a new starting point” in promoting the global zero-carbon economy. CATL’s prospectus reveals that approximately 90 percent of its IPO proceeds will go to fund the first and second phases of its Hungary battery plant. Hong Kong Financial Secretary Paul Chan Mo-po said that CATL’s listing has become a focal point in global markets, reflecting strong confidence from both corporates and investors in Hong Kong’s stock market. The offering attracted investments from sovereign wealth funds, industrial capital, long-term institutional investors, insurance funds, and multi-strategy funds from 15 countries and regions.
• Hong Kong authorities have identified nine projects involving big local industrial brands, the four most beautiful peaks and old town travels in the first phase of developing tourism hotspots to attract more tourists seeking in-depth tours in the city. At least four industrial brands, including food seasoning company Lee Kam-kee, bakery giant Kee Wah, vinegar maker Pat Chun and probiotic drink company Yakult, confirmed that they would organize tours with travel agencies starting from the third quarter of this year. Measures to boost in-depth tourism will also cover two popular old neighborhoods in Kowloon City and Central, featuring the local characteristics and history.

Industry and company news

• Xiaomi has started mass producing its self-developed flagship chip with a 3-nanometer processor, the Xring O1, after four years of development and a total R&D investment of 13.5 billion yuan, CEO Lei Jun said on Weibo yesterday. Two flagship devices featuring the chip, the Xiaomi 15S Pro smartphone and Xiaomi Pad 7 Ultra OLED tablet, will be launched at 7 p.m. on Thursday.
• Nvidia is leasing a new office space for its employees in Shanghai as part of its efforts to deepen its presence in China while complying with US export control measures, the US chip giant told media today.
• Tencent’s QQ developed a version for Huawei's computers running on its self-developed HarmonyOS that launched yesterday, media reported. WeChat and WeCom, two other instant messaging platforms under Tencent, are accelerating the development of their own versions for HarmonyOS.
• Trip.Com's net profit stayed flat at 4.3 billion yuan in the first quarter from a year earlier, while its net revenue rose 16 percent to 13.8 billion yuan, the Chinese online travel agency said today. Inbound tourism bookings on Trip.Com more than doubled in the first quarter from a year earlier, while outbound hotel and flight reservations exceeded the levels in the same period of 2019 by about 20 percent.
• Leapmotor's stock opened 2.6 percent up after the Chinese EV maker said its net loss narrowed 89 percent to 130 million yuan in the first quarter from a year ago, while its revenue soared 187 percent to 10 billion yuan. Its sales surged 162 percent to 87,552 units.
• Kweichow Moutai yesterday announced it repurchased 4 billion yuan in shares and approved a new share buyback scheme of up to 6 billion yuan. The Chinese liquor giant will distribute 34.7 billion yuan worth of cash dividends.
• Chinese commercial space firm Galactic Energy successfully conducted a sea-based launch of its CERES-1 carrier rocket at 3:38 pm (local time) on Monday, completing the first phase of the Tianqi constellation, the country's low-Earth orbit Internet of Things (IoT) satellite constellation.

Asia-Pacific highlights

• Thailand and Indonesia announced the elevation of bilateral relations to a strategic partnership following the first official visit to Thailand of President of Indonesia Prabowo Subianto on Monday. Southeast Asia’s two biggest economies pledged strong support for more two-way investment, and expanded cooperation in food security, fisheries, halal products, energy security and green economy, education and healthcare. Moreover, both sides are committed to increasing bilateral trade and they also agreed to enhance tourism cooperation, especially cruise and yacht tourism and wellness.
• Chinese pea protein maker Shuangta Food today announced plans to expand its production capacity by 10,000 tons once its new Thailand plant is completed and put into operation in the second half of the year.
• American pop singer Katy Perry today announced the Asia leg of her fifth world tour The Lifetimes Tour in three cities, Hangzhou and Shanghai in China and Tokyo in Japan. 

Executive Editor: Sonia YU

Editor: LI Yanxia

Host: Stephanie LI

Writer: Stephanie LI

Sound Editor: Stephanie LI

Graphic Designer: ZHENG Wenjing, LIAO Yuanni

Produced by 21st Century Business Herald Dept. of Overseas News.

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