China Digest

Economics and policy from China’s newspapers

Monday March 13, 2017

Integrate civilian and military tech, says President Xi

President Xi Jinping called for the People’s Liberation Army (PLA) to speed up the adoption of new technologies at a speech during the NPC on Sunday, China News said. Xi was speaking to members of the PLA and he also called for a new partnership between military and civilian technologies, and urged the speeding up of integration between them.

Unified local GDP auditing methods to start by year’s end

Local government GDP auditing methods will be unified by 2020, with two balance sheets introduced across the country in stages, China Securities Journal reported on Sunday, citing Ning Jizhe, deputy director of the National Development and Reform Commission and the National Bureau of Statistics. The national assets and liabilities balance sheets will also be ready for use in 2017, while seven provinces in a pilot scheme are using the same natural resources balance sheet.

Capital liability ratio in 12 core SOEs over 80%

The 102 centrally administered State-owned Enterprises have an average liability ratio of 66.6% in 2016, a 0.1% drop compared to the previous year, China Securities Journal reported on Sunday, citing the chairman of the State Administration of State-owned Assets Xiao Yaqing. Four companies saw a debt level over 85%, while 12 of them had over 80%, it said. SOEs are barred from using such financing for expansion.

PBOC will not merge with three watchdogs: former deputy

The People’s Bank of China will not merge with the watchdogs for banking, securities and insurance to integrate regulation, Beijing Daily News reported on Saturday, citing a former central bank vice-chairwoman and the vice-chairwoman of the national legislature’s financial and economic committee Wu Xiaoling. Regulators cannot confine their scope by the license institutions hold, but by the nature of their actions and functions.

‘Irrational and abnormal’ ODI investments still an issue: SAFE chief

Pan Gongsheng, the chairman of State Administration of Foreign Exchange, said on Sunday that Chinese firms’ overseas direct investments (ODI) are on a whole “reasonable,” but some “irrational and abnormal” investments occur, reported Caixin on Sunday. Pan cited “irregularities” such as insufficient understanding of large-scale projects, pouring huge sums of money into non-core businesses and limited partnerships where the subsidiaries are larger than the parent company, reported Caixin. Pan also said China’s ODI had slowed down since the last quarter.

More prosecutions in Xu Xiang insider trader case

Accomplices associated with Xu Xiang, the hedge fund trader jailed last month for insider trading, will soon go on trial, the Supreme People’s Court said in Caixin on Sunday. The announcement from the country’s highest court meant that provincial courts can prosecute other suspects in the case. Xu, nicknamed the Carl Icahn of China, had collaborated with 13 listed companies to profit from stock price manipulation.