Caixin
May 25, 2021 09:20 AM
CX DAILY

CX Daily: The Accelerated Push for a Nationwide Property Tax

Property tax /

Cover Story: The accelerated push for a nationwide property tax

China is accelerating long-discussed plans to roll out a nationwide property tax. Experts say such a tax could be tested by the end of this year in some first- and second-tier cities that have hot real estate markets, most likely Shenzhen and the southern island province Hainan.

The central government for years has been mulling a tax on homeownership, and Shanghai and the southwestern megacity of Chongqing were chosen in 2011 to conduct trials of levying taxes on certain houses. Since then there has been much discussion of expanding the tests nationwide, though there has been little progress in a decade.

Local governments have been reluctant to push for such a tax out of concern that it will cause property values to fall and dampen demand for land, hurting a major source of their fiscal revenue. Experts argue that won’t be an issue.

Hypothermia /

Freezing weather kills 21 runners in 100-kilometer race

Twenty-one people were killed during a 100-kilometer foot race in northwestern China’s Gansu province as hail, freezing rain, gales and a sharp plunge in temperature suddenly struck.

Most of the victims died of hypothermia, a dangerous drop in body temperature usually caused by prolonged exposure to cold temperatures. The race took place in the rugged Jingtai Yellow River Stone Forest scenic area, known for its sheer cliffs, stone columns, canyons and dramatically twisting river course.

Related: How I survived the deadly ultramarathon in Gansu

FINANCE & ECONOMY

CIPS

The CIPS is a worldwide clearing and settlement system for cross-border yuan-denominated transactions. Photo: CIPS

Yuan /

Four things to know about China’s cross-border yuan clearing system

China has ramped up efforts to promote its cross-border clearing and settlement system for yuan-denominated transactions as it seeks to boost the paltry use of the currency around the world.

Although China still has a long way to go to foster the widespread use of the Cross-Border Interbank Payment System (CIPS), analysts believe that in the long run, the system will play an increasingly important role in promoting the internationalization of the yuan.

Here are four things to know about the CIPS.

Cryptocurrencies /

Hong Kong mulls allowing nonlocal companies to apply for crypto exchange license

The Hong Kong government said it is considering allowing companies incorporated elsewhere to apply for a cryptocurrency exchange license but insists on banning retail investors from trading cryptocurrencies due to risk concerns.

The government proposed setting up a licensing regime for virtual-asset service providers, which means that unlicensed cryptocurrency exchanges would be banned in the city in the future, according to legislative proposals released in late 2020 for public comments.

Related: China hammers bitcoin anew with warning on miner crackdown

Policy /

Chinese regulators reaffirm stance to maintain financial policy continuity

A key regulatory body chaired by Vice Premier Liu He reiterated that there should be no sudden turns in financial policies and urged maintaining reasonably abundant liquidity in the financial system, according to a Friday conference (link in Chinese) of the State Council’s Financial Stability and Development Committee.

Policymakers vowed to maintain continuity in macroeconomic policies this year to support the economic recovery, though the monetary and fiscal policies are not as loose as in 2020 when authorities issued stimulus to offset the fallout from the Covid-19 pandemic.

Quick hits /

China braces for $1.3 trillion maturity wall as defaults surge

Ling Huawei: Huarong is nowhere near defaulting on offshore bonds

BUSINESS & TECH

yuan

A farewell ceremony for Yuan Longping was held at the Mingyangshan Funeral Home in Changsha, Central China's Hunan province, on May 24. Photo: VCG

Yuan Longping /

China mourns Yuan Longping who lifted country to top rice producer

China is mourning the death of Yuan Longping, a Chinese agronomist known as the “father of hybrid rice,” who was renowned for developing high-yield hybrid strains that lifted millions out of hunger.

Yuan, 91, died Saturday of multiple organ failure in Changsha, the capital of Central China’s Hunan province. His memorial service was held Monday morning at the Mingyangshan funeral parlor, with thousands of residents flocking to the site to lay flowers in memory of Yuan.

Related: China’s ‘father of hybrid rice’ Yuan Longping dies at 91

Qualcomm /

Auto industry gloom helped fuel chip shortage, Qualcomm China chief says

The chip shortage now plaguing the global car sector resulted from a perfect storm of two major factors, including automakers’ own underestimation of how quickly their sector would rebound as the pandemic eased, the China chief of global chip giant Qualcomm Corp. said.

Qualcomm is one of the biggest among a field of global chipmakers that engage exclusively in product design and then outsource actual production to third-party manufacturers like Taiwan’s TSMC and UMC. But those third-party manufacturers have become overwhelmed with more business they can handle since around the start of the year as the auto sector bounced back faster from the pandemic than many carmakers had expected.

IPO /

Chinese recruiter Kanzhun hopes Nasdaq investors will overlook swelling losses

Tencent-backed online recruiter Kanzhun Ltd. filed for a U.S. IPO, betting investors will trust it has a great career ahead of it even as its marketing expenses continue to keep it deep in the red.

Kanzhun, which operates the popular Boss Zhipin platform, filed for a Nasdaq listing Friday with an initial fundraising target of $100 million, although that figure often goes up or down depending on investor demand. The company said it would use the proceeds primarily on research and development and marketing.

Its prospectus showed that its already substantial losses swelled again last year even as it almost doubled revenue. In 2020, it booked a net loss attributable to shareholders of 1.23 billion yuan ($187.9 million), compared with 734.4 million yuan in 2019. Its total revenue grew 94.7% to 1.94 billion yuan.

Renewables /

China allows more wind, solar power this year even as subsidies fade

Chinese policymakers set no upper limit on how much new wind and solar power capacity can be added to the grid this year while also reserving a set amount of subsidies for residential solar installations, underscoring the government’s support for increasing renewable energy use.

Shrugging off concerns about the swelling upstream costs of photovoltaic inputs, the world’s top solar producer aims to install at least 90 gigawatts of guaranteed new wind and solar capacity by the end of 2021, according to a notice (link in Chinese) published last week by the National Energy Administration (NEA).

Quick hits /

Shenzhen skyscraper wobbles again following evacuation

Douyin, Kuaishou cited for illegally collecting personal data

Dalian Wanda exits AMC Entertainment, reversing global expansion

Thanks for reading. If you haven't already, click here to subscribe.

Today's CX Daily was compiled and edited by Kevin Guo (xinguo@caixin.com).

Share this article
Open WeChat and scan the QR code