Provinces map out paths to open up service sector -- Local governments are setting ambitious targets on further opening up the service industry to foreign capital, as provincial-level authorities implement newly revised national guidelines. More than 10 places, including Hubei, Jiangsu, Fujian, Zhejiang and Sichuan provinces and Shanghai, recently promulgated specific policies to encourage foreign investment in a wide range of sectors such as financial service, telecommunication, and internet sectors. In this round of opening-up, Shanghai municipal government is taking the lead. (Source: China Daily)
Entrepreneurial bond pilot to be added at local government level -- China's securities regulator said on July 7 that expansion of the innovation and entrepreneurship bond pilot for facilitating financing of high-tech small and medium-sized companies will continue, and will be added to the local government financial support system and the commission will set up a fast track for the examination and approval of their issuing. (Source: China Daily)
CIRC to work on commercial endowment rules -- The China Insurance Regulatory Commission said on July 5 that it is working closely with the Ministry of Finance on regulations for individual tax-deferred commercial endowment insurance, in the run-up to a pilot program which is to take place before its wider introduction. The State Council on July 4 released a statement on stepping up the pace of developing commercial endowment insurance, in which it confirmed that an individual tax-deferred commercial endowment insurance pilot will start before the end of 2017. Yuan said the CIRC would select qualified insurance companies to participate in the pilot, through a strict vetting and approval process. (Source: China Daily)
China to promote rural sewage treatment programs -- China will promote sewage treatment programs in rural areas as an initial step to improve rural waste water control. Toilet waste accounts for a small portion of rural waste water, but makes up the largest share of pollution, thus becoming the top priority for treatment, Zhao Hui, senior official with the Ministry of Housing and Urban-Rural Development, said on July 5. Zhao urged local governments to make use of toilet waste, which can be treated to be used as fertilizer for crops.
China takes more measures to reduce logistics costs -- China is set to reduce logistics costs and improve logistics efficiency to spur the real economy, according to a guideline approved at a State Council executive meeting chaired by Premier Li Keqiang on July 5. One focus is placed on better road transportation through improving traffic administration and law enforcement to enable better services and less red tape. Tax policy will be overhauled and toll charges will be set at reasonable levels to reduce the burden on companies. The country aims to establish an integrated nationwide cargo clearance system and to cut cargo clearance time by one-third by the end of this year, according to the guideline.
China's central bank resumes reverse repos to support liquidity -- China's central bank on July 11 resumed open market operations after a 12 trading-day suspension, in a move to supplement market liquidity. The People's Bank of China (PBOC) pumped 40 billion yuan (5.9 billion U.S. dollars) into the financial system through reverse repos, according to a PBOC statement. Altogether 280 billion yuan of reverse repos and 179.5 billion yuan of medium-term lending facility loans are due to mature this week, putting pressure on market liquidity. China set the tone of its monetary policy in 2017 as prudent and neutral, keeping an appropriate liquidity level but avoiding excessive liquidity injections.
Beijing to accelerate opening up of service sector -- The State Council has approved a pilot plan to open up Beijing's service industry by removing more restrictions in the sector. The pilot will last for three years and aims to modernize and upgrade the capital's service sector, the State Council said. The plan highlights reform in major areas, including services in science and technology, Internet and communication, culture and education as well as finance and tourism. Local authorities will ease investment restrictions, allow more foreign capital, streamline regulations and encourage innovation, according to the plan.
China plans world-leading bay area covering Guangdong, HK, Macao -- A draft plan to turn the Guangdong-Hong Kong-Macao greater bay area into the world's largest bay area in terms of GDP by 2030 has been filed with the national economic planner, according to Wu Weibao, deputy head of Guangdong's development and reform commission. The greater bay area will cover Hong Kong and Macao special administrative regions, and nine cities in Guangdong Province including the first-tier cities of Guangzhou and Shenzhen. By 2030, the area is expected to have the highest GDP among all bay areas worldwide, and become an advanced manufacturing center, as well as an important global hub of innovation, finance, shipping and trade, he added.
China publishes draft regulation on key information infrastructure protection -- China's Internet regulator started to solicit public opinion on a draft regulation on key information infrastructure on July 11. The draft was published on the Cyberspace Administration of China (CAC) website and will be open for suggestions until August 10. According to the draft, the key information infrastructure is that which would jeopardize national security and the public interest in case of malfunction, damage or data leakage.
China to deepen reforms to promote mass entrepreneurship, innovation -- China's cabinet on July 12 adopted guidelines with detailed measures to boost mass entrepreneurship to achieve innovation-driven growth. The government will streamline their management procedures and reduce market barriers to offer efficient services for market players. Meanwhile, China will expand financing channels for start-ups, encourage industrial upgrading and improve policy support for entrepreneurial and innovative professionals, according to the statement.
China plans to expand oil, gas pipeline networks -- China will increase its oil and natural gas pipelines during the coming years as the world's largest energy consumer moves to secure stable supplies and clean up the coal-dominated energy mix. According to an expansion plan announced on July 12, the country's pipeline networks will stretch to 169,000 km by 2020, with those for crude, refined oil and natural gas at 32,000 km, 33,000 km and 104,000 km, respectively, according to the document. The total length of the networks will rise to 240,000 km by 2025. Pipelines for refined oil will reach all cities with a population of 1 million or above, while those with more than half a million residents will have access to pipelines for natural gas. Energy imports from countries along the Belt and Road routes will be boosted with the construction of more pipelines. The plan highlighted projects with Russia, Myanmar, and Central Asian countries, and said more import projects will be initiated.
China securities regulator pledges to strengthen market supervision -- China will strengthen oversight on the securities market to keep it fair, open and impartial, said Jiang Yang, vice chairman of the China Securities Regulatory Commission (CSRC) on July 12 when responding to questions about priorities in the next phase of the CSRC's work during an exclusive interview with Xinhua. "The regulator will continue to crack down on violations of securities laws and regulations, including insider trading and market manipulation," said Jiang. China will advance reforms to make the capital market better serve the real economy. And the capital market will open wider to foreign investors in a steady way and domestic brokerages will expand business overseas, Jiang said.
China allows local governments to issue bonds for toll road building -- China on July 12 issued a guideline allowing local governments to issue special bonds to support the construction of toll roads. Provincial-level governments can sell such bonds within the central government's approved annual quotas. Funding from the bond issuance must be used to build government-operated toll roads, prioritizing national-level road projects and these under the Belt and Road Initiative, Beijing-Tianjin-Hebei coordinated development and Yangtze River Economic Belt plans. Local governments should use road tolls as well as incomes from roadside advertising, service stations, and road interest transfer to pay the debts.
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