This issue provides an overview of the macroeconomic trends in Q3 2020, some policy updates and hot topic analysis.
Here are some macro-economic highlights:
Total aggregate financing to the real economy increased by 9.01 trillion yuan
According to the People’s Bank of China (PBoC), total aggregate financing to the real economy (AFRE) reached 29.62 trillion yuan during the first three quarters of 2020. This was 9.01 trillion yuan more than the same period last year. These proceeds will go towards stabilising private enterprise operations, safeguarding the labour market and providing additional direct assistance to the real economy. Total outstanding AFRE reached 280.07 trillion yuan by the end of September, and increased by 13.5% year-on-year.
Fiscal revenue increased by 4.7% in Q3, and reduced by 4.6% to 14.1 trillion yuan in the first nine months of the year
In the first three quarters of 2020, fiscal spending decreased by 1.9% to 17.51 trillion yuan, while fiscal revenue dropped by 4.6% year-on-year to 14.1 trillion yuan. The general public budget revenue dropped by 14.3% in Q1 and by 7.4% in Q2 year-on-year, and it increased by 4.7% in Q3 as the economy gradually recovered. Over the months of July, August and September, public budget revenue rose by 4.3%, 5.3% and 4.5% year-on-year respectively.
In 2020, the four-day fifth plenary session of the 19th Central Committee of the Communist Party of China (CPC) was concluded in Beijing on 29 October. One of the key outcomes of the plenary session was the formulation of the 14th Five-Year Plan (2021-2025) for National Economic and Social Development and the Long-Range Objectives Through the Year 2035, which was based on proposals that were provided by the CPC Central Committee. These proposals map out a blueprint for China’s future economic and social development. Taking Shanghai city’s largest populated Pudong district as an example, which just celebrated its 30th anniversary of development and opening-up, we invite you to read more about the highlights and key outcomes of the plenary session.
Managing Partner, Central China Markets Leader, Shanghai Office Lead Partner, Entrepreneurial and Private Business Co-Leader, PwC China
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