China will initiate a pilot program to facilitate the cross-border purchase of wealth management products by residents in the Guangdong-Hong Kong-Macao Greater Bay Area, said the People’s Bank of China (PBoC).
Chinese mainland residents in the Greater Bay Area will be allowed to open special investment accounts with the banks in Hong Kong and Macao to buy their qualified WMPs, while residents in Hong Kong and Macao can buy WMPs sold by mainland banks operating in the Greater Bay Area, according to the PBoC.
According to the statement, cross-border capital flow under the program will be capped, while individual investors will be granted a quota on their WMP investments.
The program is expected to support the development of the Greater Bay Area and will be conducive to promoting the opening of the Greater Bay Area’s financial market to the outside world, the statement added.
The launch date and implementation details of the program will be announced through separate notices, the central bank said.
Shopping in Hainan
China’s Hainan Province will increase its annual tax-free shopping quota for travelers from July, according to the Ministry of Finance (MoF).
With effect from Wednesday, the quota will be raised to 100,000 yuan (US$14,123) per person each year from the current 30,000 yuan, the MoF and China’s customs and taxation authorities said in a joint statement.
The categories of duty-free goods will also be expanded, while some electronic products will be added to the duty-free list. The current tax-free limit of 8,000 yuan for a single product will be lifted, and the number of categories with a single-purchase quantity limit will be significantly reduced, according to the statement.
The duty-free shopping policy was implemented in April 2011 and has been improved since then, with the sales of offshore duty-free shopping hitting 53.8 billion yuan and the number of buyers reaching 16.31 million by the end of 2019.
The policy adjustment will greatly improve consumers’ shopping experience, release policy dividends and enhance confidence in the development of the Hainan Free Trade Port, said an official with the MOF.
Tourism and consumption
The three-day Dragon Boat Festival holiday ending Saturday had seen China’s tourist activities rebound and online consumption retain steam in fresh signs of post-epidemic recovery, reported Economic Information Daily on Monday.
The tourism sector that was once severely affected by the Covid-19 has warmed. Ticket purchases for tourist sites and hotel bookings increased more than fourfold and twofold, respectively, from the three-day Tomb-sweeping Day holiday in April this year, the newspaper reported, citing data from Mafengwo.com, a popular online travel website.
During the holiday period, domestic tour-related searches and demand for flight ticket bookings were about 70% of the level at the same period last year, according to the newspaper, which cited Trip.com, a travel service website.
Local destinations are reopening and gaining foot traffic, with central China’s Henan Province receiving 5.75 million trips, 61% of the level at the same time last year. Major tourist attractions in southwestern Sichuan Province posted ticket sales revenue amounting to 60.18% of the same period last year.
Another highlight of holiday consumption is online sales, as the number of postal packages delivered climbed 47.68% year on year to reflect a growing demand for goods amid stepped-up work and production resumption.
E-commerce platforms like JD.com and Pinduoduo continued to tap the vast rural consumer market, logging 150% year-on-year growth in bulk fruit, beef and lamb sales, while 70% of their holiday orders came from new markets in small cities and rural areas.
The story was written by Yang Zhijie and Liu Licong and first published at ATimesCN.com. It was translated by Nadeem Xu.