China Digest

Economics and policy from China’s newspapers

Friday July 21, 2017

China eyes global status on AI development

China aims to see its artificial intelligence (AI) industry reach the same level as global leading powers by 2020 and surpass its rivals by 2030, the Economic Information Daily reported, citing the national plan issued by the State Council. AI would drive domestic industrial upgrades and economic transformation by 2025, it added.

CBRC relaxes qualification for debt issuing

The China Banking Regulatory Commission (CBRC) has relaxed rules for Chinese commercial banks on issuing debts to complement capital, Caixin reported. Among the requirements of debt issuance eliminated: that banks have no violations of law or regulations as well as any major case record due to internal management omissions, within the last three years.

Rules tightened on insurance firm capital injections

The China Insurance Regulatory Commission has released the second draft of regulations on insurance company equity on Thursday, Caixin reported. In the new version, the CIRC can take any measures if it discovers that insurance companies or their shareholders have used their premiums for capital injection, or commit false capital injection by using fake documents.

House renting plan kicks off in 12 pilot cities

The Ministry of Housing and Urban-Rural Development (MOHURD) said in a joint statement with eight other state departments that it would accelerate development in the house renting market in cities with large population flow, the Shanghai Securities Daily reported. The MOHURD picked 12 cities as pilot zones, including Guangzhou, Shenzhen and Hangzhou, to encourage state-owned enterprises to turn into house-leasing oriented companies.

Three SOEs rank in Fortune 500 top ten

The State Grid, Sinopec Group and China National Petroleum ranked among the top three Chinese companies on the Fortune Global 500 list, an annual ranking of the world’s largest corporations by revenue, Sina Finance reported. The three state-owned enterprises (SOEs) were listed as the second, third and fourth largest corporations respectively on the list.

Alibaba and Tencent break US$300 billion value

The market value of Alibaba and Tencent, the two big Internet companies in China, have both exceeded US$300 billion during the past week, the Paper reported. Tencent, listed on the Hong Kong Stock Exchange, broke the key line of HK$300 per share on Thursday. While Alibaba, listed on the New York Stock Exchange, broke its own record of US$150 per share.

Record jump in Shenzhen’s Class A office projects

Five Class A office building projects totalling 574.4 thousand square meters of property entered the Shenzhen market in the first six months this year, pushing up the city’s property record to 4.01 million square meters, Yicai reported, citing research by DTZ real estate services. Class A official buildings will reach 70 thousand square meters in Qianhai District in 2017, while 910 thousand and 1.26 million square meter increases are projected for 2018 and 2019 respectively.

Ant Finance adds 11 funds to new platform

Ant Finance, the fintech arm of the Alibaba Group, introduced 11 more fund companies to use its newly developed feature called “Fortune Accounts,” on Thursday. The fund companies, including China Asset Management and Hua’an Fund Management, can sell their own investment products on its wealth-management app, Ant Fortune. The combined assets on the platform, which included 7 fund companies previously, are expected to constitute half of China’s fund industry, the Paper reported.

Zhejiang province ‘richest’ in disposable income

The average per capita disposable income of national urban residents hit 33,616 yuan (US$4,975) in 2016, a 39.3% jump compared to 2012, Yicai reported. All cities in east China’s Zhejiang Province exceeded the average figure, reaching 47,237 yuan as the richest among coastline provinces.

Former CSRC head suspected of bribery

Yao Gang, former deputy chairman of the China Securities Regulatory Commission, is suspected of abusing his authority and accepting bribes. The Central Commission for Discipline Inspection has registered the complaint and launched an investigation, Caixin reported. Yao has been deprived of his Communist Party membership and dismissed from his post.