This issue provides an overview of the macroeconomic trends in Q2 2021, some policy updates and hot topic analysis.
Here are some macro-economic highlights:
Total aggregate financing to the real economy increased by 17.74 trillion yuan in H1
According to the People’s Bank of China (PBoC), total aggregate financing to the real economy (AFRE) increased by 17.74 trillion yuan in the first half year, which was 3.17 trillion yuan less than the same period in 2020 and 3.12 trillion yuan more than the same period in 2019.
Fiscal revenue grew by 21.8% while fiscal spending increased by 4.5% in H1
In the first half year, as a result of strong economic recovery, the low base from last year and rising industrial producer prices, the national public budget revenue grew by 21.8% year-on-year to 11.71 trillion yuan. It increased by 8.6% compared to H1 2019. Meanwhile, national public budget expenditure went up by 4.5% to 12.17 trillion yuan.
China’s seventh decennial population census revealed demographic shifts that are likely to affect national economic and social policies with dramatic implications for the business sector. For example, in order to improve the fertility rate and reduce the cost of education for children, the Ministry of Education recently promulgated regulations on out-of-school education.
China Tax Leader, Central China Markets Leader, Shanghai Office Lead Partner, PwC China
Tel: + (21) 2323 3029