The People’s Bank of China (PBOC) has intervened in the lending sector by issuing guidelines on Thursday to guarantee liquidity at non-bank financial institutions and maintain market stability, a Caixin report confirmed. Banks should lend long-term funds to non-bank financial institutions to ease the recent liquidity strain, the PBOC said in its so-called window guidance, which banks are not required to follow but usually do.
Levy rises to7.5% on small car buys in 2017
The Ministry of Finance has raised the levy on purchasing cars with an engine capacity smaller than 1.6 liters from the 5% this year to 7.5% next year, the Economic Information Daily reported on Friday. The 5% levy was set in October 2015.
Shenzhen clarifies tax rate on rental income
Earlier media reports saying that the income tax from renting out property will rise to 10% is a misreading of the tax policy, Southern.com reported. The Shenzhen Tax Bureau on Thursday night said 10% of the income from renting out a house is taxable, but the levy required from taxpayers is 5% of the taxable amount. So the actual tax rate is 0.5%, which is basically in line with the current level, the report added.
11 more consumer financing firms to join market
The China Banking Reglatory Commission expects 11 more consumer financing companies to be set up, adding to the 16 that had approval to open this year, a Caixin report said on Thursday night. By the end of September, the total bad loan rate reached 4.11% after the first 15 consumer financing companies started operating. This is an acceptable level compared to the international standard of 5%, said Mao Wanyuan, a department head at the commission.
China eyes 7 trillion yuan in tourism spending by 2020
China has set a target of 7 trillion yuan (US$ 1 trillion) in tourism spending by 2020, Xinhua News Agency reported Wednesday evening, citing a joint statement released by China’s National Development Reform Commission and National Tourism Administration. Tourist attractions will be renovated and infrastructure built, the report said.
New standards set on secondary lead industry
China’s Ministry of industry and Information Technology issued new standards on the entry criteria for the secondary lead industry, Xinhua News Agency reported on Thursday afternoon, citing information from a report. Secondary lead companies producing more than 100,000 tons per year will be granted permission to do business. New and existing firms must meet the criteria.
CNPC to cut staff by 20% under corporate reforms
Corporate reforms will see the China National Petroleum Corporation (CNPC) cut staff and departments by 20%, ccstock.cn reported on Thursday. CNPC, which has struggled since petroleum prices dropped in 2014, said layoffs are necessary to cut costs and stay competitive.
China to reduce single shareholder’s stake in insurance companies: CIRC
China’s Insurance Regulatory Commission (CIRC) plans to reset the upper limit of a single shareholder’s stake in insurance companies to not more than a third, Yicai reported Thursday evening, citing Chen Wenhui, Deputy Director of the CIRC.