In an effort to boost sales of electric-powered cars, China is reportedly considering cutting or waiving the 10 percent purchase tax applicable to new car purchases. The promotion of what China refers to as 'new-energy vehicles' is part of the drive to reduce the country's dependence on fossil fuels, while at the same time addressing the ongoing, and worsening, problem of air pollution. Shares of China's biggest electric car manufacturer, BYD Co. Ltd. (1211:HK) have risen in Hong Kong trading in response to indications that the government is determined to increase efforts at promoting new-energy vehicles.
Recently Hangzhou joined Shanghai, Beijing, Guiyang, Tianjin and Guangzhou in putting restrictions on car purchases by means of a license plate 'lottery'. In China, a buyer has to have a license plate before buying a car, so by restricting the number of license plates issued, the government restricts the number of cars on the road. Research reveals that in Hangzhou traffic jams reduce the average speed of cars to less than 20 km/h, thereby reducing transport efficiency and increasing pollution levels. The restriction of license plates, however, has opened up opportunities for black market trading in what has become a sought-after commodity.
Although China began promoting the use of new-energy vehicles five years ago, with a goal of reaching 500,000 by 2015, there are less than 70,000 of these cars on China's roads today. The blame for this slow development of the new-energy vehicle sector has partially been directed toward local authorities and the lack of charging stations.
Other measures being considered in promoting new-energy vehicle use include using some of the emission surcharge proceeds to finance these vehicles, as well as continuing to pay fuel subsidies to public transport companies using hybrid buses. Electric car rental services are another avenue for promoting this mode of transport. Kandi Technologies Group Inc. (KNDI:US) , which offers this service, has reportedly experienced a 34 percent gain in NASDAQ trading in this year alone, showing that there is a growing market for new-energy vehicles in China.
Tech groups transform how finance is done in ChinaFinancial TimesThat is the view of Tang Ning, one such financial entrepreneur and the founder of Creditease, a peer-to-peer lending platform. It is a sign of how far the sector has come in just a few short years. The internet is transforming the Chinese mainland. And ...
People's Daily OnlineChina salary insight: finance workers enjoy higher payPeople's Daily OnlineSalaries in China's first-tier cities are substantially more than those in second and third tier cities; the finance and real-estate industries are most likely to offer high-paying jobs; salaries in the finance industry are more than 10 times average ...and more »
Telegraph.co.ukChina may have 1000 tonnes of gold in financing dealsSouth China Morning PostChinese firms could have locked up as much as 1,000 tonnes of gold in financing deals, an industry report said, indicating a big slice of imports has been used to raise funds due to tight credit conditions, rather than to meet consumer demand.Gold paves streets for China's rising urban middle classesTelegraph.co.ukGold Slips Nearly 2 Pct As Dollar Firms, China Demand WiltsFox BusinessGold struggles near $1300; China demand concerns growCNBC.comall 122 news articles »
NEWS.com.auRussia, China aiming for dollar's demise: Jim RickardsYahoo Finance (blog)Currency Wars detailed a Pentagon-sponsored excercise Rickards took part in back in 2009 -- the Pentagon's first-ever financial war game -- where players could not use actual, physical weapons like bombs, but could only use financial weapons like ...Chinese currency moves into big leagueNew Zealand Heraldall 23 news articles »
Global TimesChina Backs Financial Aid for UkraineVoice of AmericaChinese Vice Finance Minister Zhu Guangyao told a small group of Western journalists on the sidelines of the IMF-World Bank spring meetings in Washington it was a "worry'' that more than 85 percent of IMF lending was currently focused on Europe.China rebuts 'hard landing' warningGlobal TimesBeijing rejects IMF's hard-landing warning for China's economyReutersFinance Ministers: Economy Stronger But FragileThe Epoch TimesCTV Newsall 959 news articles »
XinhuaChina's financial distress turns all too visibleFinancial TimesTrend growth is slowing down, and markets have been shaken up by the actions of the People's Bank of China (PBoC), which is trying to tame a virulent credit boom. The incidence of financial distress is rising and becoming more visible. The recent drop ...New Zealand finance chiefs welcome Chinese currency trade agreementXinhuaPeople's Bank of ChinaThe EconomistChina, New Zealand begin direct currency tradingYahoo NewsSeeking Alphaall 469 news articles »
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In addition to experiencing a slowdown in its property sector, China's property market received a blow this week with the collapse of real estate developer Zhejiang Xingrun Real Estate Co. Two weeks ago Shanghai Chaori Solar Energy Science & Technology Co warned in a stock market filing that the company is unlikely to meet its interest payment of 89.9 million yuan (US$14.6 million) on the due date of March 7 – and indeed they were not able to, resulting in the country's first domestic bond default. Some analysts note that these are signs that China's economic growth is on a path of slowing down, while others warn that this may be likened to the Bears Stearns scenario in 2008, setting off the risk management meltdown of the investment bank industry on Wall Street.
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