China to Boost E-Commerce Sector
The National Development and Reform Commission released a circular detailing its support for e-commerce business. The government will shore up e-commerce logistics and expand e-commerce services in tier-2 and tier-3 cities, will use the value-added tax pilot program to spur growth of the EMS industry thus cutting e-commerce logistics costs, and will subsidize small and midsized firms that purchase through e-commerce channels.
Auto Discounts Deepen
The average price discount of the 13 major auto brands tracked by JPMorgan across China's 10 largest cities remains elevated for domestically made models, and even on the rise for most imported ones, JPMorgan said in its China/Hong Kong Daily Views report. An elevated or widening discount is one of the key reasons that dealer inventory has come down to 1 months in July versus 1.3 months in June during the summer low season. With low inventory, JPMorgan predicted a pickup in sales from September driven by seasonality or restocking, which could lead to higher prices or narrowing discounts.
Reform Saves Taxpayers 90 Billion Yuan in a Year
More than 95% of China's 1.34 million taxpayers have benefitted from value-added tax reform, saving them a total of 90 billion yuan, the State Administration of Taxation said. The value-added tax pilot program, which began over a year ago, has helped reduce tax burdens by an average of 30% during the past year, according to the administration.
1,000 Kilometers of Subway Rail to Be Built in 3 Years
A total of 1,000 kilometers of urban subway railroads will be built in the next 3 years, with 9 cities to build their first subway network, said an official with the National Development and Reform Commission. The addition of 1,000 kilometers of subway tracks by the end of 2015, which is equivalent to half of the total lengths built in the past 40 years in China, is expected to draw 600 billion to 700 billion yuan of investments.
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