China Digest

Economics and policy from China’s newspapers

Wednesday January 25, 2017

Foreign-invested enterprises can still repatriate their profits: SAFE

A State Administration of Foreign Exchange (SAFE) director reiterates that there are no restrictions on foreign-invested enterprises’ remittance of profits, a National Economic Daily report said on Wednesday. SAFE will still follow previous policies on currency regulation, director Pan Gongsheng added.

PBOC increases interest rates on MLFs to stabilize liquidity

The People’s Bank of China raised interest rates on medium-term lending facilities (MLFs) on Tuesday to stabilize liquidity in its financial system, Yicai reported Tuesday evening, citing the central bank. Six-month and one-year rates on MLFs were raised from 2.85% to 2.95% and 3% to 3.1%, respectively. It was the first increase in nearly six years, the report added.

Regulator tightens rules on insurers’ stock investments: CIRC

Stock investments that exceed 5% of a listed company’s total shareholdings must be reported to the insurance regulator, Sina Finance reported Tuesday afternoon. The China Insurance Regulatory Commission issued the new rules to crack down on excessive buyouts and maintain market stability, the report added.

Alibaba’s online-to-offline unit raises US$1.1b in financing

Koubei, an online platform gathering businesses offering offline services under Alibaba, has finished a new round of financing worth US$1.1 billion, Caixin reported on Tuesday night. Silver Lake, CDH Investments, Yunfeng Capital and Primavera Capital are the major investors, Alibaba said.

Zhuhai bans use of commercial buildings as homes

The planning and construction of commercial buildings in Zhuhai city in Guangdong province must be sharply demarcated from residential buildings, Caixin reported on Tuesday night. The municipal Housing Department regulation also shut the door on adding toilets and kitchens to commercial property.

“Zombie” property developers get axed in Chongqing

Chongqing Industry and Commerce Administration has written off 397 “zombie” real estate enterprises in 2016 and reforms at 230 property developers will be supervised, Xinhua news agency said on Tuesday.

Firms seeking IPOs in ethnic regions get support

China will further support companies seeking initial public offerings in ethnic regions as part of the 13th five-year plan to boost regional economic development, Sina Finance reported on Tuesday, citing a State Council notice. Details on these measures have not yet been released.