Law on futures and derivatives to take effect Aug. 1

LAWMAKERS yesterday voted to adopt a law on futures and derivatives to better protect investors’ interests and develop the futures market in favor of the real economy.

The law, to take effect Aug. 1, 2022, was approved at a session of the Standing Committee of the National People’s Congress, China’s top legislature. China’s futures market posted record-setting trading volume and turnover in 2021, which stood at 581.2 trillion yuan (US$90.8 trillion) and over 7.5 billion lots, respectively, data from the China Futures Association showed.

Central SOEs record growth in R&D spending

THE country’s centrally administered State-owned enterprises (SOEs) spent more on research and development to boost innovation-driven development in the first three months of 2022, the country’s top State-owned assets regulator said Tuesday.

The central SOEs’ total R&D input from January to March expanded 18.9% year on year to 151.42 billion yuan, according to the State-owned Assets Supervision and Administration Commission. Tuesday’s data also showed that the production efficiency of central SOEs increased steadily. Their annualized total labor productivity was 727,000 yuan per capita in the first three months, a year-on-year increase of 13%.

VAT credit refunds top ¥420B in first half of April

CHINA’S value-added tax (VAT) credit refunds topped 420.2 billion yuan in the first half of April, data from the State Taxation Administration showed Tuesday.

The refunds benefited 527,000 taxpayers in the period, according to the data. To improve the cash flow of enterprises, promote consumption-driven investment, and further improve the system for refunding VAT credits, China is set to issue VAT credit refunds on a large scale in 2022, according to this year’s government work report.

Loan prime rates remain unchanged

THE country’s one-year loan prime rate (LPR), a market-based benchmark lending rate, came in at 3.7% yesterday, unchanged from the previous month.

The over-five-year LPR, on which many lenders base their mortgage rates, also remained unchanged from the previous reading of 4.6%, according to the National Interbank Funding Center. China’s central bank has reaffirmed its stance of implementing a prudent monetary policy in 2022, avoiding “flood-like” stimulus, and better utilizing monetary policy tools.