China’s industrial profits rise 9.8%, but gains uneven
The most important and market-moving stories from the Chinese-language media
Industrial profits rose 9.8% in October compared with last year, but the gains were uneven as high-tech and equipment manufacturing slowed while businesses in raw materials gained on price increases, the Securities Daily reported, citing the National Bureau of Statistics. The sector excludes service industries.
China needs less ‘direct’ intervention in economy
The government is shifting to an indirect intervention model for managing the economy, reported Caixin on Sunday, citing former finance minister Lou Jiwei. The method of direct allocation of resources can lead to poor efficiency and corruption, hence the government shift as part of structural reform, said Lou, who is now a director of the National Social Security Fund.
Baoneng’s financing poses liquidity risk, says NPC economic committee
Baoneng Group’s methods of raising funds is legal but adds to long-term liquidity risks, said Wu Xiaoling, a vice chairperson of the National People’s Congress Financial and Economic Committee on November 26. Wu said regulatory oversight is needed as a result, according to a Caixin report on November 26.
Most provinces fail fiscal transparency test
Only two out of 31 provinces, Ningxia and Hunan, reached the passing grade 60 out of 100 for transparency in fiscal affairs, according to a survey by Shanghai University of Finance and Economics reported by The Beijing News on Sunday. The average score was 42.25, up from last year’s 32.68.
Digital currency can help alleviate poverty: PBOC
Digital currencies can help impoverished communities by allowing transparent tracking of whether government subsidies and poverty alleviation loans get to the people in most need, said Xu Zhong, the head of research at the People’s Bank of China, reported Caixin on Sunday. The PBOC has stepped up research on creating a state-backed digital currency.