Top news of the week
People’s Bank of China announces required reverse reserve ratio cut
July 12, 2021
On 9 July, the People’s Bank of China (PBOC) announced a 0.5 percentage points required reverse ratio (RRR) cut effective from July 15. Experts believe this round of RRR cut is designed to hedge the impact caused by recent soaring commodity prices. A PBOC official commented that the recent RRR cut does not change the general policy trend of the central bank’s steady monetary policy.
Ministry of Commerce puts forth policies to advance foreign trade
July 13, 2021
On 12 July, China’s Ministry of Commerce (MOFCOM) stressed to put forward supportive policies to advance foreign trade will be developed in five ways: 1) Implementing and improving the supportive policies; 2) Promoting innovative development of foreign trade; 3) Further advancing the high-level opening-up; 4) Stabilising the supply chain of foreign trade and the foreign investment industry; 5) Promoting global trade and investment liberalization and facilitation.
Carbon market set to open on 16 July after a three-week delay
July 14, 2021
China’s national carbon market will begin online trading on 16 July, after a series of delays. For the official kick-off, the PBOC plans to put forward more tools to support the carbon emissions calculations, with a system combining carbon trading and carbon tax as the main methods of reducing emissions. When trading starts in China, carbon prices are predicted to trade at 30 to 50 yuan per ton this year.
National Bureau of Statistics releases mid-year economic data
July 15, 2021
On 15 July, The National Bureau of Statistics (NBS) released macroeconomic data for the first half of 2021. China’s economy is recovering continuously and entering a stage of normalized development. Premier Li Keqiang stressed an overall plan must be made for economic performance in the second half of this year.
Pudong will transform into pioneer area for socialist modernization
July 16, 2021
On 15 July, the CPC Central Committee and the State Council jointly issued a guideline to support high-level reform and opening-up of the Pudong New Area in Shanghai, and listed measures to build Pudong into a pioneer area for socialist modernization. Pudong will be established alongside economic zones, international technological innovation areas, international financial and trade centres, to upgrade the independent innovation and open economy.
Insight of the week:
On 15 July, The National Bureau Statistics (NBS) released macroeconomic data for the first half of 2021, and publicised economic indicators on consumption, investment, and industry. China’s GDP was 53,216.7 yuan, expanding 12.7% year on year in the first half of the year. The country’s GDP increased 7.9% in the second quarter from a year ago, witnessing steady and sound growth. China’s economy is recovering continuously and entering a stage of normalized development according to the report. Premier Li Keqiang stressed that an overall plan must be made for economic performance in the second half of this year and that the continuity and stability of macro policies must be maintained.
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