1 MUFG Bank (China), Ltd. The Bank of Mitsubishi UFJ, Ltd. 
 BIWEEKLY DIGEST
[Economy] 
 November Manufacturing PMI Rises 0.9 Point Month-on-Month (MoM) to 50.2 
[Industry] 
 Chinese Rank First in 2019 Overseas Tourism Expenditure for Seventh Consecutive Year 
[Trade/Investment] 
 Inward Foreign Direct Investment (FDI) in October Up 3.1% Year-on-Year 
(YoY) 
 WTO’s Goods Trade Barometer at 96.6, Remains Weak  U.S. Punitive Tariffs on China: Exemption of 32 Additional Product Categories 
Announced 
 Minimum Wages to be Raised in Fujian and Qinghai from January 2020  18 Regions Announce 2019 Salary Increase Guidelines: Increase Rates Lower 
[Finance/Exchange] 
 People’s Bank of China to Refrain from Deluge of Monetary Easing Measures  Announcement of 2020 Public Holidays: Chinese New Year, National Day, and 
Labour Day Made Long Holidays to Promote Consumption 
December 12th 2019  
                            
Disclaimer This report has been prepared by MUFG Bank (China), Ltd. (the “Bank”), for information only and is not intended for use by or distribution to any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulations. The Bank and/or any person/entity connected with it may make use of or may act upon the information contained in this report prior to the publication of this report to its customers. Neither the information nor the opinion expressed herein constitute or are to be construed as an offer, solicitation, advice or recommendation to buy or sell deposits, securities, futures, options or any other financial or investment products. This report has been prepared solely for informational purposes and does not attempt to address the specific needs, financial situation or investment objectives of any specific recipient. This report is based on information from sources deemed to be reliable but is not guaranteed to be accurate and should not be regarded as a substitute for the exercise of the recipient’s own judgment. The recipient should obtain separate independent professional, legal, financial, tax, investment or other advice, as appropriate. This report is based upon the analysts’ own views, therefore does not reflect the Bank’s official views. All views herein (including any statements and forecasts) are subject to change without notice, its accuracy is not guaranteed; it may be incomplete or condensed and it may not contain all material information concerning the entities referred to in this report. None of the Bank, its head office, branches, and affiliates is under any obligation to update this report. Historical performance does not guarantee future performance. Any forecast of performance is not necessarily indicative of future or likely performance of the any product mentioned in this report. The Bank and/or its directors, officers, and employees, from time to time, may have interest and/or underwriting commitment in the relevant securities mentioned herein or related instruments and/or may have a position or holding in such securities or related instruments as a result of engaging in such transactions. Furthermore, the Bank may have or have had a relationship (for example, the relationship of affiliate, strategic partnerships, etc.) with or may provide or have provided corporate finance or other services to any company mentioned herein. The information contained herein has been obtained from sources the Bank believed to be reliable but the Bank does not make any representation or warranty nor accept any responsibility or liability as to its accuracy, timeliness, suitability, completeness or correctness. Therefore, the inclusion of the valuations, opinions, estimates, forecasts, ratings or risk assessments described in this report is not to be relied upon as a representation and / or warranty by the Bank. The Bank, its head office, branches, and affiliates and the information providers accept no liability whatsoever for any direct, indirect and/or consequential loss or damage of any kind arising out of the use of all or any part of this report. The Bank retains copyright to this report and no part of this report may be reproduced or redistributed without the written permission of the Bank and the Bank, its head office, branches, or affiliates accepts no liability whatsoever to any third parties resulting from such distribution or re-distribution.       Copyright 2019 MUFG Bank (China), Ltd. All rights reserved. 
CHINA BIWEEKLY 
RMB Internationalization Business Promotion Office 
Global Business Division 
CHINA BIWEEKLY（December 12th 2019） 
2 MUFG Bank (China), Ltd. The Bank of Mitsubishi UFJ, Ltd. 
[Economy] ◆November Manufacturing PMI Rises 0.9 Point Month-on-Month (MoM) to 50.2 
On November 30, the National Bureau of Statistics (NBS) and the China Federation of Logistics & Purchasing (CFLP) announced that the November manufacturing PMI was 50.2 (up 0.9 point MoM). The index went above 50, the benchmark of improving business confidence, for the first time in seven months (Fig. 1). 
In November, many components of the PMI showed a MoM increase after previously falling. New orders (51.3, up 1.7 points MoM) went above 50 for the first time in two months. Production showed a significant increase to 52.6 by 1.8 points MoM. Imports also rose to 49.8 by 2.9 points MoM, showing a recovery in domestic demand. Although new export orders (48.8, up 1.8 points MoM) remained below 50, they improved from the previous month (Fig. 2). According to the authorities, exports improved due to an increase in Christmas-related orders. 
Expected production and business activities, which indicates future business confidence, was also higher than in the previous month at 54.9, up 0.7 point MoM (Fig. 2). 
Manufacturing PMI from the previous month increased across the board for manufacturers of all sizes, with large businesses at 50.9 (up 1.0 point MoM), medium-sized businesses at 49.5 (up 0.5 point MoM), and small businesses at 49.4 (up 1.5 points MoM). 
Meanwhile, the non-manufacturing PMI for November rose to 54.4, up 1.6 points MoM (Fig. 1). By industry, services increased by 2.1 points MoM to 53.5, and construction remained high at 59.6 despite decreasing by 0.8 point MoM.  
The composite PMI, a weighted average of the manufacturing and non-manufacturing PMIs that reflects the overall business confidence in China, increased 1.7 points MoM to 53.7 (Fig. 1). 
 [Industry] ◆Chinese Rank First in 2019 Overseas Tourism Expenditure for Seventh Consecutive Year 
According to media reports, on November 29 leading online travel services provider Trip.com Group and prominent financial services corporation UnionPay International released a report on Chinese outbound tourism spending in 2019 (with a title that translates as “New Travel, New Consumption, New Middle Class”). The report forecasts that Chinese tourists will rank first in overseas tourism expenditure in 2019 for the seventh consecutive year.  
Chinese tourists spent USD 127.5 billion on overseas trips in January through June 2019. In 2018, they became the world’s biggest spenders at USD 277.3 billion, followed by U.S. tourists who spent USD 144 billion—barely half that of the Chinese (Fig. 1). It is expected that Chinese tourists will retain the No. 1 position in 2019 for the seventh consecutive year. 
Based on Chinese tourists who made reservations for overseas trips using Trip.com’s Ctrip service from January to November 2019, the report found that the number of overseas tourist destinations increased by 17% year-on-year (YoY) to 158 countries and regions. The most popular destinations in order were Thailand, Japan, and South Korea. Thailand was the largest recipient of Chinese tourist 
facturing
ProductionNeworders
Newexportorders
materials
prices
ImportsEmploy-
Expected
production
business
activities
Jan49.550.949.646.946.347.147.852.5
Feb49.249.550.645.251.944.847.556.2
Mar50.552.751.647.153.548.747.656.8
Apr50.152.151.449.253.149.747.256.5
May49.451.749.846.551.847.147.054.5
Jun49.451.349.646.349.046.846.953.4
Jul49.752.149.846.950.747.447.153.6
Aug49.551.949.747.248.646.746.953.3
Sep49.852.350.548.252.247.147.054.4
Oct49.350.849.647.050.446.947.354.2
Nov50.252.651.348.849.049.847.354.9
Source: Created based on data released by the NBS and the CFLP
[Fig. 2] Trends of Major Components in the Manufacturing PMI
CHINA BIWEEKLY（December 12th 2019） 
3 MUFG Bank (China), Ltd. The Bank of Mitsubishi UFJ, Ltd. 
spending, followed by Japan and Australia (Fig. 2). However, looking at the amount spent on a single trip among the highest-ranked tourist destinations, the Chinese spent the most in the UK (RMB 3,500) and the least in Thailand (RMB 632). They reportedly spent large amounts of money on dining, shopping, accommodation, guided tour services, and tourist attractions, among others. 
Additionally, UnionPay International stated that its bank cards were most used in 1) Japan, 2) South Korea, 3) Thailand, 4) France and 5) Singapore. By city, its cards were most used in 1) Tokyo, 2) Osaka, 3) Singapore, 4) Bangkok and 5) Seoul.               
According to the Japan Tourism Agency’s inbound tourism expenditure survey released in October, inbound tourists spent a total of JPY 1.2 trillion, up 9.0% YoY, in Japan during July to September 2019. Chinese tourists in particular showed a significant increase of 22.3% YoY and were a major driver of tourism expenditure in Japan as a whole, accounting for the largest part of the inbound tourism expenditure at JPY 505.1 billion. [Trade/Investment] ◆Inward Foreign Direct Investment (FDI) in October Up 3.1% Year-on-Year (YoY) 
<Inward FDI> 
According to an announcement made by the Chinese Ministry of Commerce (MOFCOM) on November 21, the amount of inward foreign direct investment (FDI) in China in October increased 3.1% YoY (September: up 0.5%) to USD 10 billion, expanding the rise month-on-month (MoM) (Fig. 1). However, the number of newly established foreign companies decreased by 30.0% YoY (September: down 31.0%) to 2,536, remaining far below the numbers seen in 2018. Cumulative FDI from January to October was up by 2.9% YoY (January-September: up 2.9%) to USD 110.78 billion, while the number of newly established foreign companies fell 32.6% YoY (cumulative number for the January-September period: down 32.8% YoY) to 33,407.  By country or region, investments from Japan slid 2.9%* YoY in the period from January to October (January-September: down 0.3%* YoY) to USD 3.33 billion (Figs. 2 & 3). Investment from the U.S. from January to October was also down, dropping  10.6%* (January-September: down 9.4%* YoY) to USD 2.7 billion. In both cases, the amount by which investment decreased was larger MoM. Meanwhile, Hong Kong contributed the largest amount of inward FDI, rising 6.8% YoY* (January-September: up 5.1% YoY) to USD 79.7 billion and expanding the growth from the previous month, followed by Singapore and South Korea with significant increases of 26.0%* (January-September: up 22.2% YoY) to USD 5.52 billion, and 20.6%* (January-September: up 24.9%*) to USD 5.04 billion respectively (Fig. 2).    
Amount
(USD Bn)
YoY Increase
1 China277.35.2
2 U.S.144.26.8
3 Germany94.21.2
4 UK75.83.4
5 France47.910.5
6 Australia36.89.7
7 Russia34.511.2
8 Canada33.34.3
9 South Korea32.00.9
10 Italy30.13.8
[Fig. 1] Top 10 Outbound Tourism
Expenditure in 2018
Country/region of
origin
Source: Created based on data from the World Tourism
Organization (UNWTO)
RankingTourist DestinationsSpending by Chinese
Tourists
1ThailandThailand
2JapanJapan
3VietnamAustralia
4SingaporeMalaysia
5MalaysiaSingapore
6IndonesiaIndonesia
7U.S.U.S.
8CambodiaVietnam
9PhilippinesUK
10RussiaUAE
[Fig. 2] Overseas Travel Rankings for Jan. to
Nov. 2019
Source: Created based on reports about overseas tourism
expenditure by various media sources
CHINA BIWEEKLY（December 12th 2019） 
4 MUFG Bank (China), Ltd. The Bank of Mitsubishi UFJ, Ltd. 
*Figures calculated by MUFG Bank based on inward FDI amounts released by MOFCOM.  For other regions, investments from the European Union fell 28.0% YoY (January-September: down 20.3% YoY) to USD 7.1 billion, continuously expanding the amount of decline. On the other hand, investments from ASEAN countries increased 16.9% (January-September: up 12.3%) to USD 5.89 billion, expanding the growth MoM.  
By industry, investment in the manufacturing sector continued to decline, falling 11.6% (January-September: down 9.1%) YoY to USD 29.69 billion, while in contrast investment in the service sector maintained increased growth and rose 9.7% (January-September: up 9.2%) YoY to USD 79.35 billion. 
<Outward FDI> 
According to MOFCOM’s announcements on the 14th and 21st, outward FDI in October grew 25.4%* YoY to USD 9.47 billion* (Fig. 4). China’s cumulative outward FDI from 
January to October rose 1.0% YoY to USD 90.46 billion, increasing for the first time this year. *Figures calculated by MUFG Bank based on data published by MOFCOM.  By industry, investment in wholesale and retail sales from January to October rose 18.5% YoY, while the manufacturing sector maintained YoY growth of 5.3% for the same period. ◆WTO’s Goods Trade Barometer at 96.6, Remains Weak 
On November 18, the World Trade Organization (WTO) announced that the Goods Trade Barometer* for the October-December 2019 period had increased 0.9 point from the last period (July-September: 95.7) to 96.6, although it remained below 100, the benchmark which defines the expansion or contraction of trade, for the fourth consecutive period (Fig. 1).  
* The Goods Trade Barometer is calculated using six component indices that track export orders, automobile production and sales, container port throughput, international air freight, electronic components, and agricultural raw materials. A reading higher than 100 suggests above-trend growth in goods trade, while one below 100 indicates below-trend growth. (The report was formerly called the “World Trade Outlook Indicator,” and was renamed the “Goods Trade Barometer” as of the July-September 2019 period) Although some component indices had higher readings than in the last period, five out of the six were under 100. The index for electronic components notably decreased 2.5 points to 88.2 (from 90.7 in the previous period) and was the lowest index, which implies an impact from the higher tariffs (Fig. 2).  
In October, the WTO outlook for the growth rates of global trade in goods was 1.2% for 2019 and 2.7% for 2020. These figures were revised downward from the outlook announced in April (2.6% for 2019 
RankCountry/Region
Investment
Amount
(USD Bn)
1Hong Kong79.706.8
2Singapore5.5226.0
3South Korea5.0420.6
4Taiwan3.52▲ 18.7
5Japan3.33▲ 2.9
6United States2.70▲ 10.6
7United Kingdom2.03▲ 41.3
8Macao1.5054.6
9Germany1.44▲ 47.6
10Netherlands1.03▲ 1.9
Source: Created based on data released by MOFCOM
Note: YoY calculated by MUFG Bank based on data released by MOFCOM
[Fig. 2] Top 10 Countries/Regions Contributing to
China's Inward FDI for Jan-Oct 2019
CHINA BIWEEKLY（December 12th 2019） 
5 MUFG Bank (China), Ltd. The Bank of Mitsubishi UFJ, Ltd. 
and 3.0% for 2020), with the global economic slowdown, intensifying trade disputes and tariff hikes, and uncertainty surrounding Brexit indicated as the key factors causing trade to decelerate. 
Meanwhile, the latest OECD Economic Outlook, released on November 21, forecasts the world GDP growth for 2019 to be 2.9%, the lowest level since the 2008 global financial crisis. It also advocates that there is an urgent need for governments around the world to cooperate on efforts to expand business investment and create fair rules for trade and tariffs. The outlook for China’s GDP growth rate is 6.2% for 2019 and 5.7% for 2020 (Fig. 3).           ◆ U.S. Punitive Tariffs on China: Exemption of 32 Additional Product Categories Announced 
On November 29, the Office of the United States Trade Representative (USTR) announced the exemption of an additional 32 product categories* among the Chinese products subject to the third round of punitive tariffs against China (an additional 25% tariff on 
approximately USD 200 billion of Chinese goods). This is the 13th such exemption announcement since December 2018, following on from a similar 
announcement made on November 7 and bringing the total number of exempted categories to 1,194 (Fig. 1).  
The product category exemptions announced this time include vacuum cleaners, gasoline and diesel engine parts, bicycles, folding furniture, and home lighting equipment. 
* Please visit the USTR’s website for more details of the product category exemptions. ◇ First round of punitive tariffs on China:  https://ustr.gov/issue-areas/enforcement/section-301-investigations/section-301-china/34-billion-trade-action  ◇ Second round of punitive tariffs on China: https://ustr.gov/issue-areas/enforcement/section-301-investigations/section-301-china/16-billion-trade-action  ◇ Third round of punitive tariffs on China:  https://ustr.gov/issue-areas/enforcement/section-301-investigations/section-301-china/200-billion-trade-action  
Reading
vs. 3Q
Goods Trade Barometer96.6
Export orders97.5
International air freight93.0
Container port throughput100.8
Auto production/sales99.8
Electronic components88.2
Agricultural raw materials91.4
Source: Created based on data released by WTO
[Fig. 2] Component Indices of
the Goods Trade Barometer for 4Q 2019
Component
World2.9 (0.0)2.9 ( -0.1)
China6.2 (0.1)5.7 (0.0)
U.S.2.3 ( -0.1)2.0 (0.0)
Japan1.0 (0.0)0.6 (0.0)
Source: Created based on data released by OECD
[Fig. 3] OECD Economic Growth Outlook (%)
20192020
Note: Figures in parentheses represent the amount by which
the September outlook was revised
Announcement
Tariffround
concerned
Exemption Period
1stDec. 28, 20181st roundJul. 6, 2018--Dec. 28, 2019
2ndMar. 25, 20191st roundJul. 6, 2018--Mar. 25, 2020
3rdApr. 18, 20191st roundJul. 6, 2018--Apr. 8, 2020
4thMay 14, 20191st roundJul. 6, 2018--May 14, 2020
5thJune 4, 20191st roundJul. 6, 2018--Jun. 4, 2020
6thJuly 9, 20191st roundJul. 6, 2018--Jul. 9, 2020
7thJuly 31, 20192nd roundAug. 23, 2018--Jul. 31, 2020
8thAug. 7, 20193rd roundSep. 24, 2018--Aug. 7, 2020
1st round310Jul. 6, 2018--Sep. 20, 2020
2nd round89Aug. 23, 2018--Sep. 30, 2020
3rd round38Sep. 24, 2018--Aug. 7, 2020
1st round92Jul. 6, 2018--Oct. 2, 2020
2nd round111Aug. 23, 2018--Oct. 2, 2020
11thOct. 28, 20193rd roundSep. 24, 2018--Aug. 7, 2020
12thNov. 7, 20193rd roundSep. 24, 2018--Aug. 7, 2020
13thNov. 26, 20193rd roundSep. 24, 2018--Aug. 7, 2020
Source: Created based on announcements by the USTR
9thSep. 20, 2019437
10thOct. 2, 2019203
[Fig. 1] Product Categories Exempted from U.S. Punitive Tariffs on China
No. ofproduct
categories
exempt
CHINA BIWEEKLY（December 12th 2019） 
6 MUFG Bank (China), Ltd. The Bank of Mitsubishi UFJ, Ltd. 
 ◆Minimum Wages to be Raised in Fujian and Qinghai from January 2020 
The provincial governments of Fujian and Qinghai have recently announced that they will raise minimum wages.  
In Fujian Province, the minimum wage will be increased in Xiamen City from RMB 1,700 to RMB 1,800, and in Fuzhou City from RMB 1,650 to RMB 1,720. Meanwhile, Qinghai Province will raise its province-wide minimum wage from RMB 1,500 to RMB 1,700. All these minimum wage raises will take effect on January 1, 2020 (Fig. 1).  
In addition to these two provinces, minimum wage raises were also seen this year in Chongqing, Shanghai, Shaanxi Province, Beijing, and the provinces of Hunan, Hebei, Liaoning, and Guizhou. 
The highest minimum wage across all regions is found in Shanghai at RMB 2,480, while the lowest is RMB 1,550 in the province of Anhui (Fig. 2). 
◆18 Regions Announce 2019 Salary Increase Guidelines: Increase Rates Lower 
The governments of 18 provinces, cities and autonomous regions disclosed their guidelines for salary increases occurring in or before December 2019. 
The 18 regions generally lowered their standard increase rates, with the average decreasing by 0.3 point from 7.3% last year to 7.0%. Shanghai showed a significant drop to 5.0–6.0% from 8.0% the year before. 
Approx.
USD110Bn
Source: Created based on announcements by the U.S. and Chinese governments
Additional tariff rate increase
25%→30%
Planned for Dec. 15, 2019
Additional tariff rate: 15%
Implemented Sep. 1, 2019
Additional tariff rate: 15%
Planned for Oct. 15, 2019
Approx. USD160Bn
USD200Bn
USD16BnUSD34BnUSD34BnUSD16Bn
USD60Bn
Approx. USD75Bn
U.S. punitive measures 
against China
Chinese retaliatory measures against 
the U.S.
[Fig. 2] Additional Tariffs Levied by the U.S. and China
1st roundImplemented on July 6, 2018
2nd roundImplemented on August 23, 2018
3rd roundImplemented on September 24, 2018
4th round
3rd round (additional)
U.S.: Raised tariff rates beginning on May 10, 2019China: Raised tariff rates beginning on June 1, 2019
Part 1: Implemented on September 1, 2019Part 2: Implementation planned for December 15, 2019
Decision on 
implementation 
deferred
Agreed to postpone 
tariff hikes
U.S.-China cabinet-
level trade talks
(October 10-11, 2019)
Before revisionAfter revisionIncrease
XiamenRMB 1,700      (since
Jul. 2017)
RMB 1,800
(since Jan. 2020)5.9%
FuzhouRMB 1,650
(since Jul. 2017)
RMB 1,720
(since Jan. 2020)4.2%
RMB 1,500
(since May 2017)
RMB 1,700
(since Jan. 2020)13.3%
Source: Created based on announcements by regional governments
[Fig. 1] Overview of Minimum Wage Revisions in Two Provinces
Province/city
Fujian
Qinghai
Note: Increase percentages are based on MUFG calculations
Minimum wage
↓ShanghaiRMB 2,480
Shenzhen, BeijingRMB 2,200
GuangzhouRMB 2,100
Tibet Autonomous RegionRMB 1,650
Gansu ProvinceRMB 1,620
↑Anhui ProvinceRMB 1,550
Source: Created based on announcements by local governments.
Region
Highest
Lowest
[Fig. 2] Highest and Lowest Minimum Wage by Region
CHINA BIWEEKLY（December 12th 2019） 
7 MUFG Bank (China), Ltd. The Bank of Mitsubishi UFJ, Ltd. 
                                           
                        
                
Corporate guidelines for salary increases are issued as indicators to companies by the human resource and social security units of regional governments, and they reflect factors such as economic growth, price levels, and the unemployment rate. Three rates are generally given: a standard rate, an upper limit, and a lower limit. 
The guidelines are not legally binding, however they give companies a guide for determining salary increases while taking their business performance and financial ability into account. They also serve as a basis for labor negotiations. 
[Finance/Exchange] 
◆People’s Bank of China To Refrain from Deluge of Monetary Easing Measures 
On November 16, the People’s Bank of China (PBOC) released the monetary policy report for the third quarter of 2019.  
The PBOC announced its plans to maintain the prudent monetary policy and refrain from implementing a barrage of stimulus measures, and to maintain money supply (M2) in accordance with the pace of growth of nominal GDP and the growth of total social financing. The bank also stated that it will continue its efforts to maintain price stability, stave off the risk of inflation, improve the loan prime rate (LPR) system and increase its use, and boost financial support for private-sector enterprises and for small, medium-sized and micro businesses.   
According to the report, the Chinese economy is currently sustaining stable growth and there are no signs of persistent inflation or deflation thanks to economic measures gradually producing effects. At the same time, the PBOC acknowledges the growing sense of uncertainty about the external environment and the downward pressure on the Chinese economy, and plans to focus on building up new growth drivers. The report also points out that it will be necessary to keep a close watch on inflation for the foreseeable future, as  
Lower limit StandardUpper limit Lower limit Standard Upper limit
1Beijing4.0%8.5%13.0%3.5%8.0–8.5%-
2Shanxi4.0%8.5%12.5%4.0%8.0%12.0%
3Liaoning4.0%7.0%10.0%4.0%8.0%12.0%
4Jiangxi3.0%8.0%-3.0%8.0%-
5Guizhou13.5%7.5%12.5%3.0%7.5%12.0%
6Inner Mongolia1.5%7.0%10.0%-7.5%11.0%
7Hainan3.4%7.1%8.9%3.4%7.1%8.9%
8Gansu4.0%8.0%14.0%4.0%7.0%12.0%
9Qinghai3.0%6.0%12.0%3.0%7.0%12.0%
10Tianjin3.0%7.5%12.0%3.0%7.0%12.0%
11Shaanxi3.0%7.5%12.0%2.0%7.0%12.0%
12Yunnan2.0%7.0%11.0%3.0%7.0%11.0%
13Shandong3.0%7.0%11.0%-7.0%-
14Ningxia2.5%7.0%13.0%3.0%6.5%12.0%
15Jilin3.0%6.0%10.0%3.0%6.0%9.0%
16Guangxi2.0%7.0%11.0%1.0%6.0%11.0%
17Shanghai3.0%8.0%-2.0–3.0% 5.0–6.0%-
18Xinjiang3.0%7.0%10.0%2.0%5.0%8.0%
-7.3%--7.0%-
Source: Created based on announcements by regional governments
1 Data for Guizhou shown in the 2018 column is for 2017 as no data is available for 2018.
2 The average is calculated based on the standard guideline.
<Corporate Guidelines for Salary Increases in 18 Regions>
Region20182019
Average2
Effective fromOne-yearFive-year or longer
October 24, 20154.354.90
August 20, 20194.254.85
September 20, 20194.204.85
October 20, 20194.204.85
November 20, 20194.154.80
<Changes in the Benchmark Lending Rate and LPR>
Benchmark Lending Rate
Loan Prime Rate (LPR)
Source: Created based on an announcement by PBOC
CHINA BIWEEKLY（December 12th 2019） 
8 MUFG Bank (China), Ltd. The Bank of Mitsubishi UFJ, Ltd. 
                               
                             
       
              
food prices have shot up, driven by soaring pork prices. 
Meanwhile, the achievements of the PBOC’s monetary policies in the third quarter are also described, including the lowering of the RMB reserve requirement on September 16, which supplied RMB 800 billion to the market, and the reform of the LPR framework* implemented on August 17, which has lowered corporate funding costs.  
*As part of a series of efforts to reform China’s financial systems, this reform aims to improve the mechanism for setting interest rates. Banks are now advised to switch the interest rate they refer to when pricing new loans from the conventional benchmark lending rate to the new loan prime rate (LPR), which is calculated based on lending rates reported by 18 selected banks and announced on the 20th of each month. In addition to the one-year LPR, an LPR for loans with a tenor of five years or longer has now been introduced. 
◆Announcement of 2020 Public Holidays: Chinese New Year’s, National Day, and Labour Day Made Long Holidays to Promote Consumption On November 21, the General Office of the State Council announced the public holidays for 2020. Chinese New Year Holidays will consist of seven consecutive days beginning on January 24, the Lunar New Year’s Eve, while the National Day Holidays will be combined with the Mid-Autumn Festival to last for eight straight days starting October 1. Meanwhile, holidays for Labour Day will begin on Friday, May 1 and continue past the weekend for five consecutive days, one day longer than the year before. 
Scheduling numerous long public holidays is seen as a government policy to boost consumption, for instance for travel.  
Holiday
Wednesday,January 1New Year's DayThursday,June 25
Friday,January 24Friday,June 26
Saturday,January 25Saturday,June 27
Sunday,January 26Thursday,October 1
Monday,January 27Friday,October 2
Tuesday,January 28Saturday,October 3
Wednesday,January 29Sunday,October 4
Thursday,January 30Monday,October 5
Saturday,April 4Tuesday,October 6
Sunday,April 5Wednesday,October 7
Monday,April 6Thursday,October 8
Friday,May 1
Saturday,May 2Sunday,January 19Sunday,June 28
Sunday,May 3Saturday, February 1Sunday, September 27
Monday,May 4Sunday,April 26Saturday,October 10
Tuesday,May 5Saturday,May 9
Source: Created based on an announcement by the General Office of the State Council
Labour Day Holidays
<Make-up Working Days>
<2020 Public Holidays in China>
DateDateHoliday
Dragon Boat Festival
Chinese New Year (Lunar
New Year)
Mid-Autumn Festival and
National Day Holidays
Qingming (Tomb- Sweeping)
Festival