MNI China Press Digest August 17: Li Qiang, Globalization, Tax

Highlights from Chinese press reports on Thursday:

• China should focus on boosting domestic demand and continue expanding policy space for consumption and investment, which includes spending on big-ticket items and mobilizing enthusiasm for private investment, said Premier Li Qiang in a State Council meeting on Wednesday. Li urged officials to implement and strengthen the coordination of macro policies to ensure the completion of annual goals and promote high-quality development. (Source: Gov.cn)
• The world economy will not stop globalization but is undergoing value and supply chain adjustments, according to Chen Deming, a former minister of the Ministry of Commerce. Speaking at the 3rd China-Europe Beijing Forum, Chen said the world faces climate and environmental risks that require an open world economy to find solutions. Lamy Pascal, former Director-General of the World Trade Organization said China's overall attractiveness to foreign capital has weakened this year given heightened geopolitical tensions and sluggish consumer demand. (Source: Yicai)
• Investors are expecting a reduction or even cancellation of A-share stamp duty as top policymakers seek to activate the capital market. Lower investment costs will promote active trading, as stamp duty accounted for about 55% of IPOs in H1, totalling CNY110.8 billion, said Lu Zhe, chief economist of Topsperity Securities. Analysts noted authorities have made 4 changes to stamp duty since 2000, which all immediately boosted market sentiment. The State Council has the flexibility to adjust stamp duty under the authorization of the National People's Congress. China's stock market currently applies a 1‰ stamp duty rate. (Source: The Paper)