Unified Trading
Investors on the Chinese mainland can now trade securities through a single account at different brokerages and stock exchanges with a unified account platform - designed to integrate different trading systems in the securities markets - launched in October. They can switch to different brokerages without having to open new accounts and closing existing ones. They can also use the platform to operate multiple sub-accounts for different securities and investment purposes, according to the China Securities Depository and Clearing Corp. Ltd., a state-owned clearing service company. Analysts say the reform will attract fresh capital to the stock markets.
Tapping Rural E-commerce
The burgeoning popularity of online shopping in rural China is driving e-commerce companies to the countryside and boosting local businesses. China's e-commerce superstar, the Alibaba Group, is set to lead the trend with plans to invest 10 billion yuan ($1.6 billion) within three to five years to build thousands of facilities in rural China. These will include 1,000 county operational centers and 100,000 village service stations, extending Alibaba's network to one-third of China's counties and one-sixth of rural areas. Companies are looking to the vast countryside to sustain growth as rural residents show more potential than their city peers. In a report published earlier this year, Alibaba said the online shopping growth rate in Chinese counties exceeded that of cities by 13.6 percent year on year in 2013.
Budget Management
The State Council in October unveiled an action plan for better budget management as part of efforts to build a more transparent and efficient fiscal and taxation system. The long-awaited decision was seen as the first step in jump-starting a new round of broader fiscal and taxation reforms by 2020 to ensure all government revenue and spending are covered by the management system. In the document, the State Council outlines seven reform tasks for the budget's drafting, implementation, transparency and supervision, ordering a clear division of roles between the government and the market.
Cutting Coal Use
To increase cleaner power generation and cut greenhouse gas emissions, China will order power firms nationwide to upgrade coal conservation technology and eliminate outdated capacity. An action plan for 2014-20 was jointly released by the National Development and Reform Commission, the Ministry of Environmental Protection and the National Energy Administration. The plan comes after the Central Government approved climate-change goals to be met by 2020, when carbon emissions per unit of GDP will be cut by 40 percent to 45 percent from the 2005 level.
Gold Market Opens
Foreigners have now been permitted access to China's gold market after the Shanghai Gold Exchange (SGE) launched its international board recently. The yuan-denominated board was established in the China (Shanghai) Pilot Free Trade Zone to encourage foreign participation in the tightly controlled gold market. "The international board has made China's opening up the gold market a reality," said Xu Luode, SGE Chairman, adding that foreign participation and rising trade volume will make China a real international market for gold. So far, it has attracted dozens of foreign members, including international commercial and investment banks.
Strict Air Quality Plan
Beijing will adopt a special air pollution control plan for APEC meetings, which features temporary closure of factories in the event of a pollution warning. Enterprises and coal-consuming furnaces on the capital's black list of polluters will be ordered to suspend operations or reduce production to cut emissions, said Li Lixin, an air pollution treatment official with the Beijing Environmental Protection Bureau. The plan also includes mandatory construction site closures. Beijing has tightened air pollution controls this year with more severe punishment for violations. |