MNI China Press Digest Sept 18: Tax, Loans, Bonds

Highlights from Chinese press reports on Thursday:

• China’s tax revenue from the securities industry surged by more than 70% in July and August, while the insurance industry growth exceeding 10%, Yicai reported. "These gains helped push total government tax revenue growth above 5% in both months," according to Huang Lixin, director of the Tax Science Research Institute at the State Taxation Administration. Huang said a relatively low base in the same period last year also supported growth. However, the expansion rate could slow down given last year’s fourth-quarter comparatively high levels.
• China’s national household consumer loan balance, excluding personal housing loans, reached CNY21 trillion at the end of July, up CNY34.6 billion from the beginning of the year, said Yang Hong, head of the Credit Market Department at the People’s Bank of China. He noted that the loan balance in key service consumption sectors stood at CNY2.8 trillion, representing a 5.3% year-on-year rise. (Source: Yicai)
• China has issued CNY1.14 trillion in ultra-long-term special government bonds so far this year, completing 88% of the annual plan, according to Securities Times. Song Xiangqing, vice president at the China Business Economics Association, said this year’s issuance has been characterised by a front-loading and close alignment with project schedules. Under the budget framework, of the planned CNY1.3 trillion in ultra-long-term special government bonds, CNY800 billion will go towards major national projects, while CNY500 billion will support large-scale equipment upgrades and consumer trade-in policies, Securities Times said.