China Digest

Economics and policy from China’s newspapers

Tuesday January 24, 2017

Fiscal revenue growth slowed to 4.5% in 2016

Growth in the government’s fiscal revenue slowed sharply in 2016 from a year earlier, mainly due to reforms that replaced business tax with value-added tax, Sina Finance cited the Ministry of Finance saying on Monday. Revenue grew 4.5% to 15.96 trillion yuan (US$2.33 trillion) in 2016, from  8.4% in 2015.

Fujian tax reform saves businesses 5.2b yuan

Fujian province’s construction, real estate, finance and service sectors saw their tax bills reduced by 5.2 billion yuan in 2016 following the introduction in May of VAT in place of the previous business tax, with 98.3% of businesses benefitting from the 13.2% reduction in the tax burden, Xinhua news agency said.

Company foreign-debt cap doubled

Companies can borrow twice as much from overseas relative to their net assets, according to a central bank document cited by Sina Finance on Tuesday.  The leverage ratio was raised to 2 times from 1 times, it said.

Stock exchange turnover slumps

Turnover on the Shanghai and Shenzhen stock exchanges slumped 50% to 127.8 trillion yuan in 2016, Securities Daily reported on Monday citing the annual report of the central bank.

Bitcoin platforms levy 0.2% service fee

Bitcoin trading platforms Huobi.com, OKCoin and BTCChina will start charging 0.2% of turnover as a service fee in order to curb speculation and reduce volatility, National Business Daily reported on Tuesday. The PBOC is probing illegal trading practices on the platforms. 

Internet financing firms rapped over loan limits

A number of Shanghai and Guangdong internet financing platforms were told to bring their practices in line with regulations following a review that found, among other faults, many had exceeded the limits on individual and corporate loans, Yicai reported on Monday night.

Henan FTZ to open by the end of February

Henan Pilot Free Trade Zone will start operating by the end of February, the provincial official overseeing the project said in an interview with Sina Finance published on Monday evening.

Incinerators focus of 169.9b yuan waste plan

The government aims to more than double the amount of garbage it burns to 591,400 tons per day by 2020 through a 169.9 billion yuan investment in waste-disposal facilities, Caixin reported on Monday.