Briefs

Environment-Friendly IPOs Chinas securities regulator， the China Securities Regulatory Commission （CSRC）， said on February 8 that it will continue to support energy-saving and environmentally friendly firms that are in conformity with the nations industrial development policies to launch initial public offerings（IPOs） and grow through effective use of the capital market. The CSRC said that strategic emerging industries， including energy saving and environmental protection， are important aspects of structural reform. The CSRC has already introduced measures to broaden financing channels and lower financing costs， such as Shenzhen-Hong Kong Stock Connect. By the end of June 2016， a total of 70 energysaving and environmental protection firms were listed on the SME board of the Shenzhen Stock Exchange， while 59 were listed on ChiNext， Chinas NASDAQ-style board.

Home Prices Cooling Home prices in Beijing have shown signs of stabilizing and are expected to remain flat in 2017， according to data released by the Beijing Municipal Statistics Bureau. The cost of new residential apartments on the market dipped 0.1 percent month on month in December 2016， the first drop since March 2015. The growth of secondhand apartment prices in December remained flat at 0.2 percent month on month compared to November. It was 5.5 percentage points lower than the growth registered in September， statistics show. Beijings red-hot property market cooled in the fourth quarter of 2016 after authorities announced restrictions on purchase and lending to curb housing bubbles. Analysts say the restrictions are making both buyers and sellers adopt a wait-and-see attitude， helping stabilize the market.

Yuan Stabilizing While fluctuations will continue， the Chinese yuan will stabilize around the current level as Chinas economy improves， and the countrys relations with the United States advance， said a foreign exchange expert on February 12. “Chinas improv- ing economy will certainly help the yuan， as fundamentals are always the most important factor in currency movements； however， they take time to take effect，” said Stephen Simonis Sr.， Chief Currency Consultant at FXDD Global. According to International Monetary Funds latest forecast， Chinas GDP growth will stand at 6.5 percent on expectations of continued policy support. The countrys GDP grew 6.7 percent year on year in 2016， the lowest reading in nearly three decades， but within the governments target range. Chinas manufacturing sector expanded for the sixth month in a row， with the manufacturing purchasing managers index coming in at 51.3 in January， adding evidence that the worlds second largest economy is stabilizing amid uncertain global outlook.

PE Industry Growth Chinas private equity industry posted strong growth momentum at the beginning of 2017， with total assets surpassing$1.6 trillion at the end of January， a soar of$108.8 billion from the end of 2016. There were around 18，000 officially-registered private equity firms at the end of January， employing more than 280，000 people and managing over 47，500 fund products. The number of private equity firms with assets of at least $1.47 billion reached 147 at the end of January. The rapid development of private capital industry bodes well for Chinas small and medium-sized enterprises（SMEs） which often have financing difficulty. Chinese securities authority has encouraged small firms to broaden financing channels， including attracting investment from private equity firms. With so many investors now looking for good companies in which to invest， the availability of capital for SMEs is expected to increase in the years to come.

Increasing Land Price Land prices in major Chinese cities posted mild gains in 2016， propelled by rising residential land prices on the back of the housing market recovery， official data showed. The average land price in 105 cities monitored by the Ministry of Land and Resources reached about $550 per square meter in 2016， according to statistics published on the ministrys website. The price represents a rise of 5.3 percent from the fourth quarter of 2015. Land for residential use was priced at an average of $870 per square meter， a year-on-year increase of 7.9 percent， said the ministry. In comparison， the average land price for industrial use stood at $115 per square meter， 2.8 percent up from a year earlier.

New FTZs Preparation for seven new free trade zones （FTZs） is moving into the final stages， with the launch date expected within weeks， Securities Daily reported on February 12. The countrys third batch of pilot FTZs， which aim to boost inland regions， is likely to be launched as early as the end of the month， said Xiao Benhua， Professor at Shanghai Lixin University of Accounting and Finance. Chinese authorities approved FTZs in Liaoning， Zhejiang， Henan， Sichuan and Shaanxi provinces， as well as Chongqing Municipality， last August following the success of four previous zones.“The FTZ boom certainly will encourage a large number of foreign companies to either establish or extend operations in these seven provincial-level regions to benefit from favorable tax policies and simplified trade procedures，” said Li Gang， Chairman of the Sichuan Provincial Branch of the China Council for the Promotion of International Trade.