IDR: USDIDR Testing Downside Key Tech Level

Changes to value-added tax (VAT) rules for gold trading on major exchanges could strengthen China’s international influence in gold pricing, according to Song Xiangqing, vice president at the China Business Economics Association. The Ministry of Finance recently announced that transactions without physical delivery will be exempt from VAT and for trades involving physical delivery, VAT treatment will vary based on the intended use of the gold, with non-investment use either being exempt from the tax or allowing buyers to apply a 6% input tax deduction rate. An expert noted the move could attract large institutional players to concentrate more trades on the major exchanges, thereby enhancing market liquidity and price-setting influence.

Multi-generational households in China, once common, are becoming increasingly rare as the average number of children per family declines, said Jiang Quanbao, professor at the School of Labor Economics, Capital University of Economics and Business. Jiang noted that improved housing conditions have also contributed to smaller household sizes, with many adult children now living separately from their parents, even when residing in the same city, while many young couples prefer to establish independent households after marriage. According to the recently released China Statistical Yearbook 2025, the national average household size fell to 2.51 persons per household in 2024, down from 2.62 in 2023.

China’s upcoming 15th Five-Year Plan will promote the prudent internationalisation of the renminbi, strengthening its global functions in pricing, payments, investment and reserves, and expanding its use in trade and offshore markets, according to Guan Tao, former senior official at the State Administration of Foreign Exchange. Guan noted that compared with the 14th Five-Year Plan, the section titled “Expanding High-Level Opening-Up” in the new recommendations for the 15th Plan was moved up by four places, highlighting the focus on openness and global economic integration.