Slower But Better Growth

China is transitioning to slower yet safer and more sustainable growth. The growth rate is forecast to decrease to 6.8 percent this year on the back of slower investment, especially in real estate, the International Monetary Fund (IMF) said. "The labor market has remained resilient despite slower growth, as the economy pivots toward the more labor-intensive service sector. This, in turn, has supported household consumption," the IMF said in its annual Article IV Consultation Staff Report for China. It said substantial appreciation of yuan in real effective terms this year has brought the exchange rate to a level that is "no longer undervalued."

Utility Tunnel System

China aims to build a world-class utility tunnel network by 2020 to improve urban planning and achieve quality growth, according to the State Council. The tunnels will help solve the problems of "road zippers" and "overhead spider webs." Road zippers are the ditches dug for repair and installation work, which disrupt traffic and local life. The webs are the unsightly power line and telecommunications cable tangles overhead. Water and heating cables, as well as sewerage pipes and telecommunications and television cables will all be laid underground. While improving city life, the projects are expected to help stimulate investment and create new growth momentum.

One System for Public Resources

China aims to integrate public resource platforms for a unified system by the end of June 2017, the State Council said. By the end of June 2016, local governments will be required to complete the integration of platforms such as those for construction project bidding, trading of land use rights, and government procurement, with the aim of a regulated, unified and transparent national system a year later. The move is intended to improve government efficiency, prevent corruption and allow easier resource access for start-ups and entrepreneurs.

Belt and Road Focus

The southeast coastal city of Xiamen in Fujian Province will host an international investment and trade fair in September to facilitate investment flows along the Belt and Road, a key theme of the fair. The China International Fair for Investment and Trade, slated for September 8 to 11, will feature topics such as the Belt and Road Initiative, free trade zones and the Internet Plus, a strategy to combine the Internet with other sectors. The Belt and Road Initiative, proposed by China in 2013, is a trade and infrastructure network that includes the Silk Road Economic Belt and the 21st-Century Maritime Silk Road, connecting Asia, Europe and Africa. Ni Chao, Vice Mayor of Xiamen, said over 1,000 businesses will attend the fair and about 30,000 investment projects will be on offer. The fair, sponsored by the Ministry of Commerce, aims to facilitate global investment flows through bilateral and multilateral economic promotion activities. It has been held annually since 1997.

Equity Financing Platforms

China's securities regulator will soon begin inspecting online equity financing platforms to address risks brought about by illegal activities and help the platforms better serve the real economy. The China Securities Regulatory Commission (CSRC) will oversee several kinds of online platforms, including equity-based crowd-funding, which allows investors to acquire a stake in a company by pooling money from many people via the Internet, said Deng Ge, CSRC spokesperson.