China business news digest

NDRC approves more projects worth RMB 51bn and Chinese work 2200 hours a year.

Your daily digest of the biggest business news in China, translated and summarized every day.

NDRC approves more projects worth RMB 51bn

The National Development and Reform Commission, the country’s key economic planning agency, has approved three new railway as well as one airport project.

The railway projects include building a 293.1 km long railway tract in the north western province of Heilongjiang, which is estimated to cost RMB 36 billion.

(Caijing)

Profits of industrial firms decline in October

Chinese industrial firms made a collective profit of RMB 575 billion in the month of October, a decline of 2.1 per cent compared to the same period last year, according to data from the National Bureau of Statistics.

In addition, 48.8 per cent of firms surveyed complained about the difficulty of raising funds, up 2.1 per cent from September.

(Caijing)

China introduces deposit insurance scheme

The Chinese central bank has flagged it intention to introduce a nationwide deposit insurance scheme that will cover 99.63 per cent of depositors. The maximum amount of deposit covered under the scheme is RMB 500,000.

The initial amount of funds available to the deposit scheme is estimated to be around RMB 10 to 15 billion, or one per cent of banking industry’s one trillion yuan net profit. 

(Caixin)

Chinese work 2200 hours a year

Chinese workers have to labour on average 2200 hours a year, according to a report published by Beijing Normal University.

Researchers say that there is a culture of workers putting in extra hours in excess of the official 8 hours per day. People from big cities also spend up 97 minutes commuting. 

(Beijing Times)

NDRC approves more projects worth RMB 51bn

The National Development and Reform Commission, the country’s key economic planning agency, has approved three new railway as well as one airport project.

The railway projects include building a 293.1 km long railway tract in the north western province of Heilongjiang, which is estimated to cost RMB 36 billion.

(Caijing)

Profits of industrial firms decline in October

Chinese industrial firms made a collective profit of RMB 575 billion in the month of October, a decline of 2.1 per cent compared to the same period last year, according to data from the National Bureau of Statistics.

In addition, 48.8 per cent of firms surveyed complained about the difficulty of raising funds, up 2.1 per cent from September.

(Caijing)

China introduces deposit insurance scheme

The Chinese central bank has flagged it intention to introduce a nationwide deposit insurance scheme that will cover 99.63 per cent of depositors. The maximum amount of deposit covered under the scheme is RMB 500,000.

The initial amount of funds available to the deposit scheme is estimated to be around RMB 10 to 15 billion, or one per cent of banking industry’s one trillion yuan net profit. 

(Caixin)

Chinese work 2200 hours a year

Chinese workers have to labour on average 2200 hours a year, according to a report published by Beijing Normal University.

Researchers say that there is a culture of workers putting in extra hours in excess of the official 8 hours per day. People from big cities also spend up 97 minutes commuting.  

(Beijing Times)

China lifts fuel-consumption tax 

China has increased its fuel-consumption tax the first time in five years amid falling global oil prices.

China raised the tax on gasoline, by 0.12 yuan a litre, according to a statement from the Ministry of Finance on Friday evening. This has taken the amount of tax on each litre of petrol to 1.12 yuan.

The levy on diesel, jet fuel and fuel oil has increased by 0.14 yuan a litre. 

The new levels went into effect on November 29, 2014.

The price of petrol at the pump will remain largely unchanged after the increase due to the recent falls in global oil prices. 

China will also halt the collection of some taxes on smaller-sized motorbikes. Consumption taxes on tyres, alcohol and leaded petrol will also be cancelled.

A prominent commentary in yesterday's Beijing Times said that the Ministry of Finance and State Administration of Taxation should release more details on how the funds raised by the tax increase will be spent.

(Beijing Times)

A breakthrough in agricultural land reform?

A comprehensive plan to trial key changes to the way agricultural land is managed in rural China has been passed on to central authorities for examination and approval, according to a report in the Economic Observer.

The controversial reforms were flagged at the end of an important meeting of Communist Party officials in late 2013. 

The newspaper says that reforms will include changes to the way that collectively-owned rural land can be 'leased', 'sold', and even 'mortgaged'.

The draft plan is said to make it easier for farmers and rural collectives to 'sell' their 'homesteads' by transferring them into 'construction land', it will also make changes to the way that collectively-owned rural land can be requisitioned by the state and a market of sorts for the trading in 'usage rights' to 'construction land' will also be trialled.

An unnamed high-level official from the Ministry of Land and Resources is quoted by the paper as saying that "there are some who say [the reforms] are too ambitious, others say they are too conservative, I think they are just right".

The paper says that this is the most ambitious attempted shake up of China's system of land ownership since the introduction of the 'household-responsibility system' in 1978. 

Currently, all rural land in China is collectively-owned and is commonly divided into three kinds of land: agricultural land, construction land and homesteads.