CX Daily: How Severe Are Chinese Local Governments’ Budgetary Troubles?
TOP STORIES
Fiscal?/
China’s economic slowdown has not only stymied industry and disrupted daily life but also has been draining local governments’ coffers. This has become?a prominent issue?for the country’s fiscal security.
Costly Covid-19 containment measures are among causes of increased government spending, while the prolonged?property market crisis?has caused land sales to nosedive,?robbing localities of a primary source of income.?A new policy that requires them to hand out more?tax refunds?to businesses has also thinned local fiscal revenues.
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Li Ning?/
Trending in China: Chinese brand faces backlash over claims its caps resemble WWII-era Japanese gear
Popular Chinese sportswear company?Li Ning Co. Ltd.?apologized?after coming under fire from netizens claiming some of its new clothing products resemble WWII-era Japanese military uniforms.
At the center of the controversy were army green winter hats with earflaps, revealed at a recent fashion show. Many social media users suggested the hats, which have reportedly been scrapped,?looked like those worn by Japanese soldiers during the invasion of China.
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Some Chinese cities, including Wuhan, Tianjin and Guiyang, have eased interest rates to below the national floor of 4.1% jointly set by both financial watchdogs.
Property?/
Some Chinese cities?temporarily cut mortgage rates?for first-time buyers to below 4% after the country’s central bank and banking regulator gave them the green light in September as part of broader efforts?to ramp up support for the beleaguered property sector.
Some cities, including Wuhan, Tianjin and Guiyang, have so far eased interest rates to below the national floor of 4.1% jointly set by both financial watchdogs.?Qingyuan in Guangdong province has one of the lowest rates at 3.7%,?while several other cities in the region, including Zhanjiang and Jiangmen, have temporarily scrapped the floor on mortgage interest rates for first-time buyers altogether.
Quick hit?/
领英推荐
Chips?/
U.S. chipmaking equipment supplier?Lam Research?expects to lose $2 billion to $2.5 billion?of revenue next year as a result of Washington’s?restrictions on exports?of high-end technology to China, the company said Wednesday.
The world’s fourth-largest semiconductor equipment maker took necessary steps to ensure full compliance with the rules and ceased shipments and support as required, Tim Archer, Lam’s president and CEO, said on an earnings call.
Electric cars?/
The electric car unit of?Guangzhou Automobile Group Co. Ltd.?has been valued at?more than $13.8 billion in a Series A funding round involving 53 strategic investors.
The funding — which totaled 18.3 billion yuan ($2.53 billion) —?is thought to be the largest ever single private equity investment in the EV industry?and brings Aion one step closer to an IPO, industry insiders said.
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Quick hit?/
Realtor Associate @ Next Trend Realty LLC | HAR REALTOR, IRS Tax Preparer
2 年Thanks for the updates on China ????.