China Digest

Economics and policy from China’s newspapers

Wednesday August 16, 2017

Guangzhou to step-up land supply for housing

Guangzhou hopes to supply 3,200 hectares of residential land between 2017 and 2021, of which a quarter will be allocated for rental use, Caixin reported, citing an official plan released by the Guangzhou City Land Resources and Planning Committee. Analysts believe that government-provided rental land operated by state-owned enterprises could become the new model for the industry and might be expanded throughout the country, the report said.

Real estate sales see steady decline in Beijing

Beijing’s real estate sales have sagged 40.9% year on year, from January to July, China News reported, citing data from the Beijing Municipal Bureau of Statistics. It is the sixth consecutive month that the number has seen a decline. The data likely reflects that Beijing’s control policies have taken effect, the report said.

Executive shake-up at troubled LeEco

Chinese tech company LeEco appointed 11 new executives on Tuesday in a major company shake-up, the Paper reported, citing an official announcement. The exchange of blood follows the aftermath of Luang Jun’s promotion to CEO in May this year, when a series of rapid changes began within the company, the report said.

Gao Jisheng nets majority stake in Southampton FC

Gao Jisheng, chairman and founder of China’s Lander Sports, has successfully acquired an 80% stake in the Southampton soccer club, Sina Finance reported. Gao paid 210 million pounds (US$272 million) for the Premier League squad, and has passed relevant requirements for potential ownership, the report added.

Business as usual for QR code payments: SAFE

The State Administration of Foreign Exchange (SAFE) said it has not suspended overseas QR code payments, the Economic Information Daily reported. Recent media reports suggested that SAFE closed such services for foreign exchanges in all payment institutions. In fact, SAFE said it will to continue to uphold cross border e-commerce services to improve the financial sector and prevent potential risks.

NDRC backs special bond issues

China will encourage qualified corporations to issue special bonds for market-oriented debt-to-equity swaps to further the development of the nation’s home leasing business, Yicai reported, citing an official announcement from the National Development and Reform Commission. It will also work to actively prevent risks and improve the efficiency of its service, the announcement added.

Solid growth in foreign-funded enterprises

The number of newly established foreign-funded enterprises hit 17,703 in the first seven months of the year, a 12% year-on-year increase, the Economic Information Daily reported. These enterprises utilized a total foreign investment of 485.42 billion yuan (US$72.62 billion), a 1.2% yearly decrease. The high-tech manufacturing industry saw 37.39 billion yuan in foreign investment, an 8.3% yearly jump that marks continuous growth.

Chinese firms tally US$57.2 billion in FDI

Chinese companies have invested US$57.2 billion in foreign direct investment into 4,411 overseas companies in 148 countries in the first seven months of the year, the Economic Information Daily reported. Chinese investors have also raised US$7.65 billion in 50 countries along the Belt and Road development strategy, taking 13.4% of China’s total FDI.

Clean energy vehicle sales power up

Sales volume of hybrid and electric vehicles hit 56,000 in July, a startling 55.2% year-on-year increase, the China News reported. Sales volume of electric cars amounted to 45,000, a 70.2% yearly jump, capturing more than 80% of the clean energy vehicle market. Sales volumes of hybrid and electric vehicles reached 251,000 in the first seven months this year, a 21.5% year-on-year increase.