What's news

GOVT AND POLICIES

SMEs play important role in fostering economy

China's medium-sized, small and micro enterprises made important contributions to the country's economic development during the 2014-18 period, official data showed. At the end of 2018, the number of medium-sized, small and micro enterprises rose 115 percent from 2013 to 18.07 million, making up 99.8 percent of all legal entities, according to a report on China's fourth economic census released by the National Bureau of Statistics. Those enterprises employed around 233 million people, accounting for 79.4 percent of all enterprise employees nationwide, the report said. Total annual operating revenue of those enterprises stood at 188.2 trillion yuan ($26.9 trillion) in 2018, accounting for 68.2 percent of that from all companies in the country.

CDB transfers $14.29b to small businesses

The China Development Bank, a major policy bank, has so far transferred 100 billion yuan ($14.29 billion) of loans this year to boost the development of small and micro firms and spur industrial growth in poverty-stricken areas. Since the beginning of this year, the loans have been channeled to 322 banks, benefiting more than 120,000 small and micro-sized firms. Of the total, loans worth 10.5 billion yuan have reached some 100 impoverished counties and helped lift tens of thousands of people out of poverty. The CDB will continue to give full play to the vital role of development finance institutions and provide high-quality and effective financing services for real economy.

Coking coal imports increase in November

China's imports of coking coal saw steady growth in November, according to data from General Administration of Customs. Last month, the imports of the coking coal surged 16 percent year-on-year to 6.18 million tons, customs data showed. The import turnover reached $7.89 million, decreasing 3.9 percent year-on-year. From January to November, a total of 72.8 million tons of coking coal was imported, up 17 percent from the previous year, according to the GAC. The main use of coking coal is to refine coke, material for making steel.

COMPANIES AND MARKETS

China sees record daily number of startups

China's market vitality has been further boosted this year due to easing market access and streamlining approval procedures, according to the country's top market regulator. Around 21.79 million new market entities were established in 2019. A record 20,000 new firms were set up every day on average, data from the State Administration for Market Regulation showed. China has long been ramping up efforts to improve business environment to unleash market vitality and boost high-quality economic growth. The country started the pilot reform to separate business operation permits from business licenses in all 18 pilot free trade zones on Dec 1. The reform is expected to cover the whole country in 2020.

Regulator clears 3 new floats on sci-tech board

China's securities regulator has given the nod to the registration-based initial public offerings of three companies on the science and technology innovation board. UCloud Technology Co Ltd, Willfar Information Technology Co Ltd and Guangzhou Jet Bio-Filtration Co Ltd will be listed on the Shanghai Stock Exchange's sci-tech innovation board, commonly known as the STAR Market, according to the China Securities Regulatory Commission. The companies and their underwriters will confirm the IPO dates and publish their prospectuses following discussions with the stock exchange.

Volkswagen to produce more electric cars

German automaker Volkswagen AG said that it is ahead of schedule in producing electric cars and announced a new overall plan to produce 1.5 million electric cars by 2025. The previous strategic target of 1 million electric cars is expected to be reached by the end of 2023－two years earlier than anticipated, the company said. In September this year at the Frankfurt Motor Show, Volkswagen unveiled the new all-electric ID. 3 model and vowed to become a world market leader in e-mobility. Over 37,000 customers have reserved an ID. 3 and paid a pre-booking deposit, the company said, adding that the model is expected to appear on the market from summer 2020.

Toyota to recall 1,380 defective vehicles

Japanese automaker Toyota will start recalling 1,380 vehicles on Jan 10, from the Chinese market, according to China's market regulator. Filed by Toyota Motor (China) Investment Co Ltd, the recall involves 723 imported Alphard Hybrid models manufactured between Aug 19, and Sept 10, as well as 657 imported Vellfire Hybrid produced between Aug 19, and Sept 6, the State Administration for Market Regulation said in a statement. Due to a defective emergency locking retractor, the safety belts may fail to take effect when vehicles are involved in collisions, said the statement.

AROUND THE WORLD

Japan's jobless rate drops to 2.2% in Nov

Japan's unemployment rate improved in November for the first time in four months, the government said in a report. According to the Ministry of Internal Affairs and Communications, the unemployment rate stood at 2.2 percent in the recording month, dropping 0.2 percentage point from October. Unadjusted for seasonal factors, the number of unemployed people was 1.51 million in the recording month, down by 170,000 from a year earlier and still hovering near the lowest levels since the early 1990s amid the nation's ongoing labor crunch. The statistics bureau also said that 630,000 people left their jobs of their own volition, a decline of 120,000 from the previous year, while those laid off stood unchanged at 220,00 people in the recording period.

Brazil reports primary deficit of $19.8b

The Brazilian central government registered an accumulated primary deficit of $19.8 billion from January to November, which represents the best result since 2014, said the National Treasury Secretariat. The figure declined slightly from $21.8 billion in the same period last year. The primary balance of the central government is influenced by that of the National Treasury, the Central Bank and the social security system. From January to November, the National Treasury and the Central Bank had a primary surplus of $29.8 billion, while the social security system accumulated a primary deficit of $49.6 billion.

Malaysia to issue five digital banking licences

The Malaysian central bank said that it would issue up to five licences to qualified applicants to establish digital banks to conduct either conventional or Islamic banking business in Malaysia. Bank Negara Malaysia said in a statement that it had issued the exposure draft on licensing framework for digital banks, which allowed digital banks to offer banking products and services to address market gaps in the underserved and unserved segments. "Such digital banks are expected to offer meaningful access to and promote responsible usage of suitable and affordable financial solutions to financial consumers," said the central bank.