China Digest

Economics and policy from China’s newspapers

Friday January 27, 2017

December foreign service trade deficit at US$26.1b

The State Administration of Foreign Exchange (SAFE) said China’s foreign service trade deficit continues to grow, Sina Finance reported on Thursday. The figures stood at US$26.1 billion (179.52 billion yuan) in December, up from the US$25.4 billion recorded in November and US$20.9 billion in October, SAFE data shows.

Firms must recoup losses before transferring profits offshore: SAFE

Domestic companies must make up their losses in the previous year before they can transfer the current year’s profits offshore, Sina Finance reported on Thursday evening, citing SAFE.

January QFII investment stood at US$87.3b

Up to January 25, China’s Qualified Foreign Institutional Investors (QFII) have accumulated total investments valued at 600 billion yuan (US$87.3 billion), Sina Finance reported on Friday morning, citing data released by the State Administration of Foreign Exchange.

40 IPO requests approved, but seven rejected in January: CSRC

China approved 40 and rejected seven private companies’ initial public offering (IPO) requests in January, the Securities Daily reported on Thursday. The China Securities Regulatory Commission (CSRC) has clamped down on the verification process this year, the report added.

Regional equity markets face tighter rules

Eligible investors of the regional equity markets must be a person who owns financial assets of more than 500,000 yuan, a Caixin report said on Thursday night. In a new document released by the State Council, the 40 regional equity markets in China cannot issue securities except for stocks and convertible bonds, the report added.

300 “zombie” state-owned firms to be removed

A State-owned Assets Supervision and Administration Commission report targets 300 “zombie” central government-owned enterprises for removal in 2017, Yicai said on Thursday. In 2016, 398 “zombie” state-owned companies were kicked out of the market, the report added.

Shanxi sees 14.4% decline in raw coal output

Raw coal production in Shanxi province stood at 738 million metric tons in 2016, decreasing 14.4% from a year earlier. It is the first year that the coal giant recorded a drop in raw coal production, Xinhua news agency said on Thursday night.