MNI: PBOC Conducts CNY2 Bln Via OMO Thurs; Liquidity Unchanged

CHINA PBOC CONDUCTS CNY2 BILLION VIA 7-DAY REVERSE REPOS THURS

MNI: PBOC Sets Yuan Parity Lower At 7.1339 Thurs; -1.06% Y/Y

CHINA SETS YUAN CENTRAL PARITY AT 7.1339 THURS VS 7.1342

MNI BRIEF: Bank of Korea Keeps Policy Rate At 3.50%

MNI: BANK OF KOREA KEEPS POLICY RATE AT 3.50%: PRESS

Japan May Machine Orders -3.2% M/M

MNI JAPAN MAY CORE MACHINE ORDERS -3.2% M/M; APRIL -2.9%

EZ/UK T-Bill Calendar: 1/3/6-Month UKTB Auction on Friday

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

MNI China Press Digest July 11: Tax Reform, SMEs, Rural Banks

MNI (Singapore)
MNI (Beijing)

MNI picks key stories from today's China press

Policy NewsHomepageCentral Bank NewsPBOCAPACChinaStoryBond Market NewsEM Policy NewsEM Policy StoryEM Central Bank NewsPeoples Bank of ChinaPolicy StoryRegion
True

Highlights from Chinese press reports on Thursday:

  • Anticipated changes to local tax systems will likely be led by consumption tax distribution reform, increasing local authority revenue by CNY800 billion if the central government allows local collection to increase from 0% to 50%, helping to ease local fiscal pressure, said Sun Kunpeng, associate professor at Central University of Finance and Economics. Analysts suggested taxing more luxury goods, and keeping tax rates for tobacco, alcohol, refined oil, and passenger cars stable, the newspaper said.
  • China’s SME development index reached 89.0 in Q2, down 0.3 points from Q1, but higher than second quarter 2023, the China Association of Small and Medium Enterprises said. The results showed SME development remained insufficient with firms facing high cost of financing, according to Wu Dan, a researcher at the China Banking Research Institute. Fu Yifu, a senior researcher at Xingtu Financial Research Institute, said authorities should use tax cuts and subsidies to improve operating conditions and boost SME confidence. (Source: Securities Daily)
  • China has accelerated rural bank restructuring with nearly 40 mergers as of end-June this year, Yicai.com reported. Last year 1,636 rural banks existed, accounting for about 41% of national banking institutions, a decrease of 10 banks compared to 2022, data by National Financial Regulatory Administration showed. Rural firms’ risk exposure since the 2020 economic slowdown has caused downward pressure on local bank asset quality, said Yicai, citing an unnamed source.
241 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.

Highlights from Chinese press reports on Thursday:

  • Anticipated changes to local tax systems will likely be led by consumption tax distribution reform, increasing local authority revenue by CNY800 billion if the central government allows local collection to increase from 0% to 50%, helping to ease local fiscal pressure, said Sun Kunpeng, associate professor at Central University of Finance and Economics. Analysts suggested taxing more luxury goods, and keeping tax rates for tobacco, alcohol, refined oil, and passenger cars stable, the newspaper said.
  • China’s SME development index reached 89.0 in Q2, down 0.3 points from Q1, but higher than second quarter 2023, the China Association of Small and Medium Enterprises said. The results showed SME development remained insufficient with firms facing high cost of financing, according to Wu Dan, a researcher at the China Banking Research Institute. Fu Yifu, a senior researcher at Xingtu Financial Research Institute, said authorities should use tax cuts and subsidies to improve operating conditions and boost SME confidence. (Source: Securities Daily)
  • China has accelerated rural bank restructuring with nearly 40 mergers as of end-June this year, Yicai.com reported. Last year 1,636 rural banks existed, accounting for about 41% of national banking institutions, a decrease of 10 banks compared to 2022, data by National Financial Regulatory Administration showed. Rural firms’ risk exposure since the 2020 economic slowdown has caused downward pressure on local bank asset quality, said Yicai, citing an unnamed source.