Top news of the week:
China issues plan to build Guangdong-Macao in-depth cooperation zone
September 6, 2021
On 5 September, China’s central authorities issued a general plan for building a Guangdong-Macao in-depth cooperation zone in Hengqin. The plan defines the strategic position of the zone as a new platform to boost Macao’s appropriate economic diversification, a space that provides convenience to Macao residents’ life and employment, a model to enrich the practice of “one country, two systems”, and a high ground for building the Guangdong-Hong Kong-Macao Greater Bay Area.
CSRC promotes regulations on supervising and managing listed companies
September 7, 2021
On 6 September, an official from the China Securities Regulatory Commission (CSRC), stated that it is time for the formulation of the regulations on the supervision and administration of listed companies, and that the CSRC is stepping up efforts to promote the launch of the regulations. The regulations focus on standardizing outstanding issues facing the supervision of listed companies, solving the difficulties and pain points during the supervision of listed companies, and further strengthening the supervision of listed companies and related entities.
Non-profit needed to operate curriculum-based off-campus training institution
September 8, 2021
The Ministry of Education, together with the Ministry of Civil Affairs and the State Administration for Market Regulation, issued a notice mandating that curriculum-based off-campus training institutions for students undergoing compulsory education must be registered as non-profit organizations. The notice clarified that the administrative approval for non-profits must be completed by the end of 2021.
Regulatory moves impact online ride-hailing platforms
September 9, 2021
On 8 September, the Ministry of Transport unveiled that it recently issued the “notice on maintaining a fair and competitive market order to accelerate the compliance of online ride-hailing.” Local transportation regulators should urge online ride-hailing platform companies to operate in accordance with regulations and speed up compliance. The notice mentions the need to strictly investigate and crack down on illegal activities such as low-price dumping and big data-based price discrimination. The notice also mentions measures to protect drivers’ rights of remuneration and rest.
Inflation figures released
September 10, 2021
On 9 September, China’s National Bureau of Statistics released the August inflation data which underscored recent trends. The consumer price index (CPI) rose 0.8% y/y in August, down from a 1.0% y/y increase in July. The producer price index (PPI) rose 9.5% y/y in August, versus an 9.0% y/y expansion in July.
Insight of the week:
On 9 September, China’s National Bureau of Statistics released the August inflation data which underscored recent trends. The consumer price index (CPI) rose 0.8% y/y in August, down from a 1.0% y/y increase in July. The producer price index (PPI) rose 9.5% y/y in August, versus an 9.0% y/y expansion in July. The acceleration in PPI growth pegs last month’s increase as the fastest expansion since August 2008. As has been the case for most of 2021, higher commodity prices are driving producer price inflation: the mining and quarrying PPI sub-index showed a 41.8% y/y increase in prices last month – the most since records began. The upstream rise in costs has not yet been passed down to the consumer due to the national government’s willingness to tap into reserves and share the burden of high commodities prices with producers. Unfortunately, these measures have not been enough to actually cool off the soaring commodities prices to achieve normalcy. It is expected that slight increases to CPI will be seen as falling food prices, and pork prices specifically, have had an impact on figures. Non-food consumer good prices rose 1.9% y/y last month and the price of household appliances rose 1.3% y/y. The fear of rising commodities prices and its effects continues to be a feature at national level discussions on the future of economic planning.
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