China Digest

Economics and policy from China’s newspapers

Tuesday June 20, 2017

HKEx to develop innovation board for start-ups

Hong Kong Exchanges and Clearing would set up a new “innovation board” to attract start-ups and enterprises that fail to meet standards to list on either the main board or growth enterprise market, Yicai reported.

Government bond market warming up

Although the yield on the country’s government bonds has dipped, with 10-year bonds slipping to 4.16% from a 4.2% benchmark, analysts believe in the long-term the market is warming up due to improved liquidity, Caixin reported.

US$293.4 billion injection for Tencent livestreaming

Tencent will invest 2 billion yuan (US$293.4 billion) in its live streaming platform Tencent NOW to stimulate growth, Caixin reported. Tencent Vice President Yin Yu believes livestreaming is the fourth largest content revenue source following advertisements, games and eSports.

SAIC, CATL to build battery plant

Auto giant SAIC Group and the world’s third largest battery maker Contemporary Amperex Technology Co Limited (CATL) will build a production base for electric vehicle batteries, the Paper reported. The plant aims to achieve 36 billion watts of power capacity output before 2020, challenging Tesla’s 35 billion watts, it added.

US$16.2 billion for on June 18 festival saw 110 billion yuan in orders at the end of the June 18 Shopping Festival at midnight on Monday, the Securities Daily reported. Tmall, and other e-commerce platforms also saw a high level of orders, it said.

Online retail sales exceed US$443 billion for first time

Online retail sales exceeded a record 3 trillion yuan (US$443 billion) in the six months from December 2016, a 35.3% increase year on year, the National Academy of Economic Strategy said in a research report. E-commerce represented 13.35% of total retail business in the same period, a three percentage point year-on-year increase.

Firms allowed to revamp old factory buildings

Companies can apply to redevelop old factory buildings on state-owned property in Guangzhou under new land use rules, Caixin reported. Firms can build industrial plants, including hi-tech business incubators to increase the plot ratio.

Digital currency not issued yet: PBoC

The People’s Bank of China (PBoC) is warning the public that it has not yet issued any digital currency after some firms stated they had been “authorized by the PBoC,” to offer bitcoin, the Securities Times reported.

National statistics law takes effect on August 1

The State Council has published rules on implementing the Statistics Law of China, which will take effect on August 1, the Economic Information Daily reported.

Regulations to protect assets in PPP projects

Rules on protecting the assets of public–private partnership (PPP) projects were issued in a joint statement, the Economic Information Daily reported. The Ministry of Finance, People’s Bank of China and China Securities Regulatory Commission want to ensure that PPP project partners comply with standards on financing, risks and transparency.