China Digest

Economics and policy from China’s newspapers

Friday August 4, 2017

Guangzhou bans new launches of shared bikes

Guangzhou’s total number of rental bikes has reached more than 800,000, the Paper reported. Relevant departments of the city passed a bill on Thursday banning new launches of shared bikes, and urged enterprises to improve the operation of vehicle inspections and the maintenance service system, the report said.

Tencent leads top 100 internet list

Shenzhen-based technology firm Tencent surpassed Alibaba Group to lead the 2017 top 100 internet enterprises issued by the Internet Society of China and the Ministry of Industry and Information Technology, the Paper reported. Baidu was listed third among the big three internet giants. LeEco, a video streaming service provider similar to Netflix, vanished from this year’s list due to an ongoing debt crisis.

AcFun users must register real name

AcFun, a popular online video streaming site in China, has required its users to register their real names if they wish to upload videos or articles, the Paper reported, citing an official announcement. The move is meant to “act in accordance with the relevant national policies and regulations,” the announcement said.

Steady decline in Shenzhen new home prices

New home prices in Shenzhen have fallen for ten months straight since the introduction of control policies last October, Yicai reported. In July, primary residential transactions saw an average price of of 54,446 yuan per square meter, down 0.1% compared to the same period last year, the report said.

Inner Mongolia launches high speed rail service

The first high speed rail in Inner Mongolia opened for operation on Thursday, Yicai reported. The railway linked Wulanchabu and Hohhot city, and is equipped with four stations for a total length of 126 kilometers, the report added.

Methods on building and property rights released

Temporary management methods on housing and common property rights has been published in Beijing for public viewing, the Beijing Daily reported. The method calls for building homes with government and buyers holding property rights at the same time. Buyers have the right to live in the home the first five years and can purchase the government portion at market price after that.

Beijing banks see decrease in liabilities

The total liabilities of Beijing’s banks reached 20.3 trillion yuan at the end of June, down 1.9% from the beginning of the year, Caixin reported, citing Jiang Ping, deputy director of the Beijing Banking Regulatory Bureau. Since the end of 2016, China’s banking industry has been put under strong supervision and relatively tight liquidity.

Bankruptcy advised for ‘zombie companies’

Bankruptcy can be used with “zombie companies” to tackle various debt chains and resolve systemic financial risks, the Economic Information Daily reported, citing He Xiaorong, a senior judge with the Supreme People’s Court. He added that the SPC will continue to handle bankruptcy cases actively, in order to improve the judicial environment for bankruptcy and to better handle unprofitable firms burdened with debt.

Card issuers pressed on overseas payment records

The State Administration of Foreign Exchange (SAFE) said domestic card issuers should provide records of overseas payments to the administration beginning September 1, Yicai reported. All records of cash withdrawal and every payment of 1,000 yuan (US$149) or more will be reported to SAFE automatically, otherwise, the card issuer will be suspended from offering overseas payment services. Chinese card holders tallied more than US$120 billion in overseas transactions in 2016.

US$344.6 billion premium income achieved in 2017

Premium income, or revenue derived from premiums paid by customers, hit 2.31 trillion yuan in the first half of 2017, a 23% year on year increase, the Economic Information Daily reported, citing data from the China Insurance Regulatory Commission (CIRC). Insurance fund investment stood at 371.73 billion yuan in the same period, a 26.23% year on year increase.