hot spot
focus
01 The State Council Office of the CPC Central Committee issued a document to promote the high-quality development of the social credit system and promote the formation of a new development pattern
The General Office of the CPC Central Committee and the General Office of the State Council recently issued the "Opinions on Promoting the High-Quality Development of the Social Credit System and Promoting the Formation of a New Development Pattern" (hereinafter referred to as the "Opinions"), which put forward specific 23 contents around the aspects of smoothing the domestic circulation with a sound credit mechanism, supporting the mutual promotion of domestic and international dual cycles with a good credit environment, promoting the real economy of financial services with a solid credit foundation, and improving the level of creditworthiness in the whole society with effective credit supervision and credit services.
Observation by Tsinghua Financial Review
The credit system is an important foundation of the socialist market economic system. Under the new situation of accelerating the construction of a new development pattern, a sound social credit system can play an important role in smoothing the domestic and international double circulation, reducing economic and social operating costs, and building a high-standard market economic system. The "Opinions" aims to further give play to the important role of credit in improving the efficiency of resource allocation, reducing institutional transaction costs, and preventing and resolving risks, so as to provide support and guarantee for improving the overall efficiency of the national economic system and promoting the formation of a new development pattern. With the implementation of the "Opinions", the mainland's credit construction will enter a new stage of more rule of law, standardization and high-quality development, supporting the mainland's "decentralization and management service" reform to continue to deepen and further optimize the business environment, so as to better serve the new pattern of economic development. (Observer/Sun Shixuan)
important
meeting
01 The National Standing Committee will deploy and use government bonds to expand effective investment
On March 29, Premier Li Keqiang of the State Council presided over an executive meeting of the State Council, calling for the implementation of detailed measures to consolidate responsibilities and resolutely prevent major and extraordinarily serious safety accidents; make good use of government bonds to expand effective investment, promote the improvement of short boards and increase stamina and stable economic growth; and decide to start a number of new water conservancy projects with mature conditions to improve water resources security and disaster prevention and mitigation capabilities.
The meeting pointed out that making good use of government bonds to expand effective investment is an important measure to drive consumption to expand domestic demand and promote stable employment growth. In accordance with the principle of maintaining the basic stability of the macro leverage ratio, 3.65 trillion yuan of special local government bonds were added this year. In order to strengthen cyclical adjustment, 1.46 trillion yuan was issued in advance at the end of last year.
In the next step, we must pay close attention to the release of the remaining special debt quota and tilt to areas with strong solvency and sufficient reserves for projects. The quota issued in advance last year will be issued before the end of May, and the quota issued this year will be issued before the end of September. Second, it is necessary to give better play to the efficiency of special debt. Adhere to the benefit of both the present and the long term, increase investment in areas such as benefiting people's livelihood and making up for shortcomings, and support the construction of new infrastructure projects that increase stamina and reach the upper level. Rationally expand the scope of use of special bonds, and support public services and other projects with certain benefits on the basis of projects focused on transportation, energy, ecological environmental protection, and affordable housing projects. Adhere to the funds to follow the project, accelerate the start and construction of the project, and form a physical workload as soon as possible. Third, we must use reform measures and market methods to give play to the role of special debt in "four or two allocations of thousands of pounds", attract more social capital investment, and support the investment of private enterprises. Fourth, it is necessary to strengthen the management of funds, prevent precipitation from idleness, and strictly prohibit the construction of buildings, halls, and image projects in violation of the law. Fifth, it is necessary to make overall plans to grasp the issuance of treasury bonds and local bonds, maintain a reasonable scale of treasury funds, ensure the implementation of tax rebates and tax reduction policies at the grass-roots level and the financial resources needed to benefit the people's livelihood, and prevent debt risks. Encourage overseas medium- and long-term funds to purchase treasury bonds and implement relevant preferential tax policies. The financial system should strengthen cooperation, ensure the orderly issuance of treasury bonds, and support project construction financing.
At present, the international situation is becoming more complex and severe, domestic development is facing new challenges, the downward pressure on the economy has further increased, and stable growth is in a more prominent position. Government bonds, especially special bonds, are an important starting point for fiscal policy and even macroeconomic regulation and control, and are also the main tools for stimulating effective investment. Making good use of government bonds to expand effective investment is an important measure to drive consumption to expand domestic demand and promote stable employment growth, and stabilizing the macroeconomic market requires government bonds to continue to exert force. The 3.65 trillion yuan of new local government special bonds will be invested in key areas, and more investment will be driven and leveraged, and the role of special bonds in "four or two allocations and thousands of pounds" will inject strong impetus into stable economic growth. (Observer/Sun Shixuan)
02 The People's Bank of China held a symposium on the pilot work of digital yuan research and development
On March 31, 2022, the People's Bank of China held a symposium on the pilot work of digital yuan research and development, summarizing the preliminary research and development pilot work and arranging the next stage of deployment. Yi Gang, president of the People's Bank of China, and Fan Yifei, vice president of the People's Bank of China, attended the meeting and made speeches.
The meeting requested that in the next step, all relevant participants should be deployed in accordance with the "14th Five-Year Plan", adhere to the general tone of the work of seeking progress in stability, assume their responsibilities, work together, and steadily promote the pilot research and development of the digital yuan. Expand the scope of the pilot in an orderly manner, adding Tianjin, Chongqing, Guangzhou, Guangdong, Fuzhou and Xiamen in Fujian Province, and 6 cities hosting the Asian Games in Zhejiang Province as pilot areas on the basis of the existing pilot areas, and Beijing Municipality and Zhangjiakou City in Hebei Province will be converted into pilot areas after the completion of the pilot scenarios of the 2022 Beijing Winter Olympic and Paralympic Winter Games. Adhere to the "two-tier operation" structure, give full play to the advantages of designated operating institutions, and increase the intensity of pilot applications and ecological system construction. Strengthen the construction of the security and risk prevention and control system, improve the relevant laws and regulations and standard systems, deepen the research on theoretical issues, and continuously consolidate the pilot foundation for the research and development of the digital yuan.
"Seeking progress in stability" is the main tone of orderly expansion and steady promotion of the digital yuan research and development pilot. The increase in the pilot area reflects the above tone, with 6 cities added specifically, while Beijing and Zhangjiakou have been converted into pilot areas after the Winter Olympics. The promotion of the digital yuan is a trend, but what is needed is to fight steadily and step by step, and in this process, it is necessary to strengthen the construction of security and risk prevention and control systems. (Observer/Wang Mao)
policy
01 The CSRC reported the progress of Sino-US audit and regulatory cooperation: whether Chinese stocks are delisted or not depends on the communication situation
On March 31, the head of the International Department of the China Securities Regulatory Commission issued an answer to reporters' questions before the market, informed the progress of Sino-US audit and regulatory cooperation, and responded to the fact that some Chinese enterprises were included in the list of delisting risks by the US Securities and Futures Commission. The head of the International Department of the China Securities Regulatory Commission said that the Chinese side and the U.S. Public Company Accounting Supervision Committee (PCAOB) have held several rounds of frank, professional and efficient talks, and the overall progress is smooth, and communication between the two sides will continue. Both sides are willing to resolve differences and problems, and the final result depends on the wisdom and original intention of both sides.
Regarding the listing of some enterprises that are included in the list of delisting risks by the SEC, the CSRC said that after learning from the US SEC, this is a normal procedure for the US regulatory authorities to implement the Foreign Company Accountability Law, and whether the listed companies will be truly delisted in the next two years ultimately depends on the progress and results of Sino-US audit and regulatory cooperation.
Recently, the U.S. Securities and Exchange Commission added Baidu, Futu Holdings, iQiyi, Kaixin Yuanda Pharmaceutical and Nocera, which is engaged in fishery aquaculture, to the "pre-delisting list", which is also the third batch of Chinese stocks included in the list since March. Under the Foreign Companies Accountability Act, if a public company engages an auditor registered outside the United States and the Board of Accounting Supervision of Listed Companies determines that it cannot conduct a full inspection or investigation in its place of incorporation, the SEC is obligated to continuously identify the company and disclose it. The SEC has begun formal identification based on the 2021 annual reports disclosed by listed companies, and the above-mentioned companies are companies that have recently published annual reports and are naturally identified in accordance with relevant circumstances. After being included in the provisional list, the company will not be required to delist immediately, but will continue to be inspected for three consecutive years, and if the conditions are not met for three consecutive years until the beginning of 2024 (after the release of the 2023 annual report), it may be required to delist from the United States. At the previous special meeting of the Financial Commission, a clear statement on this issue has also been made, and at present, the regulators of China and the United States have maintained good communication, made positive progress, and are committed to forming a specific cooperation plan. The Chinese government continues to support all kinds of enterprises to list overseas. (Observer/Qin Ting)
02 Children under 3 years old can be reduced by individual tax
According to the website of the State Administration of Taxation, the State Council recently issued a notice deciding to establish a special additional deduction for individual income tax for the care of infants and young children under 3 years old, which will be implemented from January 1, 2022.
According to the notice, the relevant expenses of taxpayers in caring for infants and children under 3 years old shall be deducted according to the standard fixed amount of 1,000 yuan per infant per month. Parents can choose to be deducted by one of the parties at 100% of the deduction standard, or they can choose to be deducted by both parties at 50% of the deduction standard, and the specific deduction method cannot be changed in a tax year. Safeguard measures and other matters involved in the special additional deduction of individual income tax for the care of infants and young children under 3 years of age shall be implemented with reference to the relevant provisions of the Interim Measures for Special Additional Deductions for Individual Income Tax.
The special additional deduction policy for personal income tax for the care of infants and young children under 3 years old is one of the supporting measures for optimizing the birth policy. The increase in the pre-tax deduction for infant and young child care expenses reflects the state's encouragement and care for the people's fertility and upbringing, which is conducive to reducing the burden of raising children and promoting the long-term balanced development of the population.
At this point, China's special additional deduction for personal income tax has increased to 7. The 7 special additional deductions for individual income tax are: children's education, continuing education, serious illness medical treatment, housing loan interest, housing rent, support for the elderly, and infant and child care for children under 3 years old. These 7 special additional deduction policies basically take into account the burden of taxpayers at different stages and achieve full coverage of taxpayers' expenditures at all stages. (Observer/Sun Shixuan)
Significant events
01 The People's Bank of China issued the Opinions on Doing a Good Job in Comprehensively Promoting the Key Work of Rural Revitalization with Financial Support in 2022
Recently, in order to thoroughly implement the important spirit of the Central Economic Work Conference, the Central Rural Work Conference and the deployment requirements of the Central Document No. 1, the People's Bank of China issued the "Opinions on Doing a Good Job in Comprehensively Promoting the Key Work of Rural Revitalization in Financial Support in 2022" (hereinafter referred to as the "Opinions"), guiding the financial system to optimize the allocation of resources, accurately exert force, and make efforts in the front, effectively increase financial support in the field of "three rural areas", continue to comprehensively promote rural revitalization, and provide strong support for stabilizing the macroeconomic market.
The "Opinions" pointed out that all banking financial institutions should focus on the whole industrial chain of high-standard farmland construction, spring ploughing preparation, grain circulation, storage and processing, etc., take the initiative to dock financing needs, and strengthen the financial guarantee of food security. Standardize the development of supply chain financial services, increase financial support for the production and processing of important agricultural products, warehousing and preservation of cold chain logistics facilities and other financial support.
Actively develop financial products suitable for the characteristics of woody oilseeds such as camellia oleifera, and support large-scale planting of camellia oleifera and transformation of low-yield forests. Strengthen financial support for key agricultural core technologies such as seed sources, and improve the financing convenience of the seed industry breeding and breeding industry chain. Innovate the financial service model of facility agriculture and agricultural machinery and equipment, steadily develop financial leasing business, and support agricultural machinery and equipment research and development enterprises to issue credit bonds.
The "three rural areas" issue is a fundamental issue related to the national economy and the people's livelihood, and the People's Bank of China has spared no effort to support it. The People's Bank of China recently said that it is necessary to accurately exert force and advance force, effectively increase financial support in the field of "three rural areas", continue to comprehensively promote rural revitalization, and provide strong support for stabilizing the macroeconomic market.
The People's Bank of China also specifically mentioned the issue of food security, saying that all banking financial institutions should focus on the whole industrial chain of high-standard farmland construction, spring ploughing and ploughing, grain circulation, storage and processing, etc., take the initiative to dock financing needs, and strengthen the financial guarantee of food security. To be sure, food security is the key to our "steady" growth as the COVID-19 pandemic continues, the Russian-Ukrainian conflict continues, and the global economy needs to be revitalized. (Observer/Wang Mao)
02 Using the Heavenly Dry Earth Branch and the Yin and Yang Five Elements to Predict the Stock Market 2 Brokers Were Fined
In its recently issued Institutional Regulatory Circular, the Csrc's Institutional Supervision Department once again mentioned two cases of "Feng Shui Research Report". According to the circular, in view of the problems of some securities companies engaged in the business of publishing research reports and securities investment consulting, using the Tiangandi Branch, yin and yang five elements, etc. to analyze, predict, or provide investment advice services for securities and securities market trends, the CSRC recently organized the Securities Regulatory Bureau to conduct on-site inspections, and adopted administrative supervision measures against the illegal securities companies and relevant responsible personnel in accordance with the law. The relevant responsible persons have been dismissed or removed from their posts and demoted, and internal accountability measures such as withholding annual bonuses have been taken. The CSRC said that it will continue to pay attention to and strictly investigate and deal with violations of laws and regulations in the research report business and securities investment consulting business, resolutely implement the "zero tolerance" work policy, find and dispose of it together, and promote the sustainable and healthy development of the industry.
In recent years, the Institutional Department of the CSRC has continued to strengthen the supervision and enforcement of securities investment consulting business, and continuously improved business rules and regulatory mechanisms. The CSRC stressed that practitioners such as securities analysts and securities investment consultants should standardize their professional behavior and enhance their professional capabilities. Securities analysts should publish research reports based on objective and solid data bases and factual basis, prudently put forward hypotheses, and ensure that the analysis conclusions have reasonable basis. When making investment recommendations, securities investment advisers shall follow the principle of good faith and diligently and prudently provide securities investment advisory services to clients. When providing securities investment consulting services, relevant personnel shall strengthen their responsibilities, carefully assess the possible impact on the market, and consciously maintain the order of the capital market. (Observer/Qin Ting)
Important numbers
01 The six major banks posted the 2021 report card: a total of 3.486 billion yuan per day
The "report card" of the six state-owned banks in 2021 was all revealed, and the Industrial and Commercial Bank of China is still the "most profitable" state-owned bank, with a net profit attributable to the mother of 348.338 billion yuan in 2021, an increase of 10.27% year-on-year; the construction bank achieved a net profit attributable to the mother of 302.513 billion yuan, an increase of 11.61% year-on-year; the net profit attributable to the mother of the Agricultural Bank of China and the Bank of China exceeded 200 billion yuan, reaching 241.183 billion yuan and 216.559 billion yuan respectively, an increase of 11.7% year-on-year, respectively. and 12.28%; the net profit attributable to the Bank of Communications and the Postal Savings Bank was 87.581 billion yuan and 76.17 billion yuan respectively, an increase of 11.89% and 18.65% respectively.
The operation and net profit of the six state-owned large banks "doubled", the net profit increased by double digits year-on-year, and the operating data performance was "eye-catching". However, it is expected that there is still room for a slight decline in the overall net interest margin of subsequent banks. On the one hand, the recovery progress of domestic demand in the domestic economy is not ideal, and the operating pressure of some enterprises is still not small, and it is necessary to continue to guide financial institutions to reasonably benefit the real economy; on the other hand, the central bank continues to maintain the normal order of the deposit market in coordination with multiple departments, and the total amount and structural tools are coordinated to maintain reasonable and sufficient liquidity, support small and medium-sized enterprises in multi-channel financing, etc., and maintain the basic stability of the cost of deposit liabilities. (Observer/Qin Ting)
This article is edited by Mao Wang
