China Digest

Economics and policy from China’s newspapers

Monday July 24, 2017

China leads way in electric vehicle development

Production and sales of hybrid and electric vehicles were robust in June as 65,000 units were produced and 59,000 units were sold, a 43.4% and 33% increase respectively from a year earlier, Xinhua Finance reported, citing figures from the China Association of Automobile Manufacturers. According to the research report issued by German consultancy Roland Berger, China ranked on top in the global electric vehicle development index for the first time in Q2.

Sunac chief becomes chairman of LeEco entity

Sun Hongbin, chairman of Tianjin based property developer Sunac China, was officially appointed as the new chairman of the LeEco’s listed company, Leshi Internet Information & Technology, the Shanghai Securities Daily reported. Leshi said in a statement that chief executive officer Liang Jun was named as the company’s legal representative.

Wanda Group to focus on investments in China

Wang Jianli, chairman of property and media conglomerate Wanda Group, told Caixin on Friday that the company has “decided to focus its investments to within China,” in response to “national policies.” The company has been in the spotlight recently for its US$9.3 billion sale of 77 hotel assets and 13 theme parks to property developer Sunac China.

Removal of TV content a ‘strategic adjustment’

The chairman of Bilibili, a popular online streaming service for dramas and anime, said on Sunday that the large scale removal of television dramas was part of its internal “strategic adjustments” to content operations and this will continue for at least another month, the Paper reported. Chen Rui, the chairman, was referring to rumors that the large scale removal, especially of popular overseas dramas, was part of Chinese authorities’ crackdown on “unsavory content,” the report added.

Zero tolerance on fraudulent IPOs: CSRC

The China Securities and Regulatory Commission said on Friday that it will “tighten restrictions” on initial public offerings and continue to maintain a “zero” tolerance attitude toward fraudulent listings. The move is in line with President Xi Jinping’s emphasis on “regulatory vigilance,” the Shanghai Securities Journal reported. The press statement comes amid rumors that the commission was going to loosen restrictions for IPO listings.

Guangdong to study reform of hospital pharmacy system

The provincial reform commission in Guangdong issued a statement seeking consultation from medical professionals in re-evaluating the hospital pharmacy trusteeship system, Caixin reported. The statement included a white paper on anti-monopoly policies for further discussion. Under the current system, hospital pharmacies are tendered out to private chains who generate profits from drug sales. The proposed system would see pharmacies in hospitals turning into a “cost” center, whereby hospitals have to sell the drugs at cost price to patients.

Government agencies disclose ‘three publics’ spending

The nation’s 103 central government agencies disclosed their 2016 budgets for official overseas trips, vehicle purchases and hospitality, which is referred to as the “three publics” in Chinese, Caixin reported on Saturday. The expenditures on “three publics” stood at 4.82 billion yuan (US$712 million) in 2016, which was 1.49 billion yuan less than the total budget. The China Banking Regulatory Commission, the Ministry of Finance and the National Audit Office spent only 40%, 53% and 59% of their budgets on the “three publics.”

Urban job market sees steady growth

Around 7.35 million new jobs were created in urban areas in the first six months this year, up 180,000 positions from the same period last year, the Economic Information Daily reported. The national urban unemployment rate and the unemployment rate in 31 major cities were both below 5% in June, the National Bureau of Statics added.

Sharing economy hit US$510 billion last year

The market transaction volume of China’s sharing economy hit 3.45 trillion yuan (US$510 billion) in 2016, a 103% year on year increase, with more than 600 million users and 60 million service providers, the Economic Information Daily reported. Insiders from the National Development and Reform Commission said boosting the sharing economy could improve resource utilization efficiency and inspire start-up businesses and supply side reform.