China Digest

Economics and policy from China’s newspapers

Monday June 19, 2017

GDP to reach 6.7% in 2017, says university report

A Renmin University of China report forecast gross domestic product to reach 6.7% in 2017, the Economic Information Daily reported. Liu Fengliang from the research group said a pick-up in GDP deflator and a higher than normal GDP are indicators of a steady and optimistic economy.

Web transactions soar 70 times in four years

Internet financial transactions stood at 436 billion yuan (US$64 billion) in 2016, a 317% increase from 6 billion yuan in 2013, the Economic Information Daily reported. Director Sun Guofeng from the Financial Research Institute of the People’s Bank of China said consumption was vital to economic growth and structural transformation.

Brisk trade for online retailers at festival

Online retailers saw brisk trade when the annual June 18 Shopping Festival started at midnight on Sunday, with Tmall registering 100 million yuan in sales in the first seven minutes, while Suning saw orders leap 398% year on year in the first hour, the Shanghai Securities Daily reported, citing iResearch data. JD.com, which launched the 24-hour festival idea seven years ago, saw a 250% jump in sales.

Tencent to develop eSports in five-year plan

Hong Kong-listed Tencent said it would cultivate talent and build a gaming industry park as part of its five-year plan to develop the eSports market, Caixin reported. Tencent projected that by the end of 2017, the number of video gaming users will reach 220 million, making the country the world’s largest gaming market. Total gaming users worldwide stood at 335 million, it said.

Medical insurance doubles to US$76 billion

Individual medical insurance doubled to 520 billion yuan by the end of 2016, compared to 269 billion yuan in 2012, the Economic Information Daily reported, citing the Ministry of Human Resources and Social Security. Experts said the government-run medical benefits fund was not effective and suggested that work unit payments be reduced.

Insurance institutions forced out of Beijing: CIRC

The China Insurance Regulatory and Commission said insurance institutions with legal person status would be moved to nearby Tianjin and Hebei province to ease market pressure in Beijing, the Securities Times report on Saturday.

Online student loans suspended

Internet platforms are barred from offering student loans until further notice and will need approval from the China Banking Regulatory Commission, the Beijing Youth Daily reported, citing a joint statement from the CBRC, the ministries of Education, Human Resources and Social Security.

US$18.92 billion flows into HK via Stock Connect in 2017

The southbound flow of capital into Hong Kong through the Shanghai and Shenzhen Stock Connect schemes stood at 128.95 billion yuan this year, mostly into the financial and information technology industries, the Securities Times reported. Since they began the total of southbound funds was 452.4 billion yuan, it said.

Reforms on transfer of mining rights

The country will start a three-year reform of the transfer system on mining rights, meaning potential new owners must submit bids at an auction, the Paper reported citing a joint announcement from the Communist Party’s Central Committee and the State Council.

Hebei will halt operations at 1,170 certified mines

Hebei provincial authorities will suspend operations of 1,170 certified mines and complete reafforestation of the environment around 256 mines by October 31, the Paper reported, citing the Department of Land and Resources.