China Digest

Economics and policy from China’s newspapers

Friday July 28, 2017

Xi Jinping stresses aims ahead of party congress

China’s head of state said in a high level workshop that the party must “stress what banner it wants to fly, what path it wants to take” ahead of the country’s top leadership shuffle later this year, Caixin reported. President Xi was referring to the need to emphasise socialism with Chinese characteristics and greater confidence in the party’s work, saying that “great progress” has been made since the last party congress five years ago.

Party workforce to focus on local government debt

Yang Weimin, deputy director of the Central Leading Group on Financial and Economic Affairs, said that tackling the risks from local government debt will be the focus of the workforce for the later half of this year, Caixin reported. The workforce, which is the Communist Party’s top unit on economic policies, said that strengthening supply side reforms, reforming the “chaos” in the financial sector, stabilising property prices, ensuring that outbound and domestic investments are stable and improving the lives of the people are the other priorities, Caixin reported.

China’s major telcos to stop roaming charges

China Mobile, China Telecom and China Unicom will stop long distance roaming charges within China effectively from September 1, the Paper reported. The move comes a month ahead of the schedule set by the State Council in March this year.

NEEQ sees penalties soar in July

Twenty listed companies, six securities companies and five institutional investors were punished by the National Equities Exchange and Quotations (NEEQ), also called the “New Third Board,” in July, the Securities Times reported. Another 480 listed companies were punished by the NEEQ over their failure to meet disclosure obligations in the first half of 2017, accounting for more than half of the penalties.

State Council to ban foreign garbage

Foreign garbage will be entirely banned from entering the country by the end of 2017, Yicai reported, according to a decision of the State Council. The country will also phase out imports of solid waste, which can be replaced by domestic resources, by 2019. The importation of solid waste from overseas has caused great damage to the environment and people’s health, the report added.

New chairman appointed at Commercial Aircraft Corp

The state-owned Commercial Aircraft Corporation of China Ltd, manufacturer of the C919 passenger jet, announced on Thursday that He Dongfeng has been appointed as the chairman, as well as the company’s party secretary representative, the Paper reported. He was previously the general manager of the company. Other than He, the company also saw six other top level managerial changes, the report added.

Stock exchanges strengthen connections

The Shanghai Stock Exchange will raise the proportion of direct financing while the Shenzhen Stock Exchange will stick to strict delisting rules to improve the quality of companies on the Second Board market, the Securities Times reported. The two exchanges promised to promote the bidirectional opening of capital markets and guard against market risks, as per recommendations from the mid-year national work conference on securities and futures.

LeEco founder’s shares frozen by authorities

Embattled technology conglomerate LeEco said on Thursday that the shares of Jia Yueting, its founder, are now effectively frozen by the authorities, the Shanghai Securities Journal reported. The notice came after the Beijing No.3 Intermediate Court froze Jia’s shares in the company. Jia’s assets were frozen by a Shanghai court early last month, the report added.

Beijing-Shanghai bullet trains to speed up

China plans to raise the speed of its Beijing-Shanghai high-speed bullet trains, the Fuxing Hao, to 350 kilometers per hour in September, Sina Finance reported. The bullet train will reduce the connection time between Beijing and Shanghai to around four and a half hours, with no rise in ticket prices. Insiders say the 350 km/h standard will not apply to all high-speed trains.

State Council backs entrepreneurship

The State Council issued a notice on Thursday highlighting the drive for entrepreneurship in China, the Shanghai Securities Journal reported. The notice said that China would push for more highly skilled technicians and to speed up the “realisation” of research and development efforts, the report said, although details were not provided.