Divisions under China’s central government will no longer allow any local governments to invest in shantytown renovations projects using their funds for procurement services. Under the current regulation, if local governments want to finance shantytown projects, they should issue municipal bonds. In other news, Yantai government has collaborated with Minsheng Securities and Taide Group to co-establish an over RMB3bn bailout fund for local private companies. As of the end of last month, local government-backed bailout funds had assets under management (AUM) of over RMB180bn, accounting for nearly 37.5% of all bailout funds. Today, A-share markets closed lower. SHCOMP dropped 1.68% to 2,605.18, SICOM slumped 2.44% to 7,735.05, and CSI 300 lost 2.16% to 3,181.67. ChiNext Price Index decreased 2.61% to 1,345.76. The Hang Seng Index went down 2.47% today to 26,156.38.
The chief financial officer (CFO) of Huawei, Meng Wanzhou, was reportedly arrested in Canada after the US Department of Justice started to investigate Huawei’s potential violation of US sanctions against Iran. Meng is also the daughter of Huawei’s