The finance ministry will reduce corporate income tax, value-added tax, land value increment tax and deed tax as part of efforts to reduce the debt load on companies in the process of restructuring, Dai Bohua, an assistant minister at the ministry said, according to a report in the Economic Daily. Companies securitizing assets will also be exempted from stamp duty on relevant contracts.
Guangzhou land prices double this year
Parcels of residential land set for auction in Guangzhou on October 24 have doubled in price since the start of 2016, according to Caixin. The local government has listed 10 pieces of land for auction, seven residential and two commercial, and according to prices given by Guangzhou Land Resource and Urban Planning Committee, three of the plots in east Guangzhou start from 4,400 to 5,100 renminbi per square meter. This compares with prices of 2,000 to 3,000 renminbi a square meter at the start of this year for land surrounding the auction sites, said Caixin. Local authorities in 20 cities China have recently introduced curbs on property purchases.
Li Keqiang pledges help for Macau
The government will help Macau diversify its economy by helping to host a world tourism and economic forum each year and set up a renminbi clearing center for Portuguese-speaking countries, said Premier Li Keqiang during his visit to the former Portuguese territory, Xinhua news agency reported.
Renminbi depreciation will aid China’s economic growth, says IFC’s Li Yao
Overseas acquisitions by Chinese companies will create pressure on the Renminbi’s depreciation, but a weakening of the currency will be beneficial to the country’s overall economic growth, Li Yao, the head of International Finance Corporation’s investment branch for Asia, said in a Caixin report on Oct. 10. Transparent and well planned management of the currency should prevent capital flight, while China’s inclusion in the SDR basket is unlikely to affect the renminbi exchange rate, he said. The exchange rate will become more transparent and “respectful of the market,” he said, according to the report. China’s enterprises buying overseas entities reflects the rapid accumulation of wealth in China, and presents a path for growth for those companies, he said.
IFC is a member of the World Bank Group and the largest global development institution focused on the private sector in developing countries, according to its website.
By Lin Wanxia, Poo Yee Kai & Benny Kung