Foreign exchange reserves fell to their lowest since 2011 in October. The US$45.727 billion drop was the fourth consecutive monthly decline and took China’s overseas-currency warchest to US$3.121 trillion, according to the People’s Bank of China.
Clean energy set to be the top priority
The consumption of non-fossil energy must accounts for 15% of primary energy consumption by 2020, said Han Shui, the chief engineer of the National Energy Bureau at a press conference on Monday, according to the China News Service. The target has been set to be the guiding principal in the 13th Five-Year Plan of electricity development.
Delay in new homes on Shanghai market
The government will delay the release of new residential housing on the Shanghai property market, marking the third consecutive week of withholding real estate supply, according to a report by Caixin on Monday. The government has delayed the issuance of the pre-sale certificates to property developers, an unnamed developer told Caixin. The industry consensus is that market has entered a “cold winter” under the crackdown on speculation, he said.
60% of companies polled experience increase in tax burden from new value-added tax
A poll reveals that 60% of companies has seen an increase in tax burden after the value-added tax (VAT) reforms that took effect in May this year, reported Caixin on Monday. Part of the VAT reforms require companies to use billings and receipts to account for expenses to be filed in return for tax credit, but many companies say they are unable to bill for expenses such as buying of raw materials. The complex requirements made it difficult to claim the tax credits on such expenses. This was the main reason companies cited for the increase in tax burden. The 113 companies polled by the China Enterprise Research Center were from 12 industries such as real estate and agricultural in Hangzhou, Wuhan, Guiyang and Dalian.
Shanghai gears up on green investment
The Shanghai government said it would invest around US$59 billion in environmental protection in the next five years, Caixin reported on Monday. The environment protection industry has been specified to include clean energy, new energy, various types of pollution prevention equipment and related consulting services.
Reform commission to meet with provinces, coal and rail firms over winter coal supply
The National Development and Reform Commission (NDRC) will hold a meeting on Wednesady to discuss capacity and resource management of China’s coal supply ahead of winter, according to the Shanghai Securities Journal on Tuesday evening. The commission is set to meet with representatives from coal provinces – including Shaanxi, Shanxi, Inner Mongolia – and companies as well as transport firms on Wednesday. China Railway, Qinhuangdao Port Co, and Shenhua Group and China Coal Energy will also attend. The aim is to increase supply before the onset of winter, the report said. An unnamed analyst in the report said the NDRC also hoped to increase the amount of thermal coal in Qinhuangdao by sending more supplies to stabilise prices. Coal prices across China have seen excessive fluctuations, with the Securities Daily reporting on Monday that three firms cut their prices by 10 yuan per metric ton. But in the major coal hub of Qinhuangdao prices have risen 56% since the start of the year.
Five new local asset management firms named
The China Banking Regulatory Commission has named five new local asset management companies (AMCs) in Shaanxi, Qinghai, Heilongjiang, Zhejiang and Shanghai, it said in a Shanghai Securities Journal report. The move follows an earlier announcement on October 24 that the banking regulator was allowing local governments to set up more AMCs to tackle bad debt at the local level.