In today’s talking points, China’s support policy for small enterprises has seen positive results, a new tax-effective share fund has been launched in Australia, and Guangdong has seen significant growth in import and export volume.
Positive effects brought by China’s supportive policy for small and micro firms.
According to Yi Gang, governor of the People’s Bank of China (PBOC), China’s support policy for small and micro enterprises has yielded positive results.
The loan balance of small and micro enterprises increased by 20% to about 10 trillion yuan ($1.14 trillion) by April, directing financial assistance to over 23 million firms.
According to Yi, improving credit support and direct financing for small and micro firms is one of the current tasks, in order to further economic transformation and development.
The PBOC will undertake methods to guarantee a 30% increase in the loan balance of the small and micro enterprises, while simultaneously reducing the comprehensive financing cost of credit of these firms by 1%, Yi said.
Beginning May 15, China is to implement a lower required reserve ratio (RRR) for small and medium-sized banks. This will lead to a long-term capital of 300 billion yuan, as 1,000 regional rural banks will benefit from a RRR of 8%.
Source: China Daily
New Australian, Tax-effective Share Fund
In Australia, a new fund has been launched that will allow investors a lower tax rate, one that is currently being offered by superannuation.
The tax effective Australian share fund, launched by Generation Life and Redpoint Investment Management, is offering a very effective 9-11% tax rate. This is 15% lower than what superannuation offered.
The Tax Effective Australian Share Fund will provide advisers and clients with dynamic investments solutions to help them reduce the impact of taxes paid by the investors. This fund hopes to deliver higher returns than numerous share-based Australian funds, along with the compounding effect of lowered annual tax payments.
Source: Investor Daily
Guangdong import and export growth
According to Guangdong Customs, the region’s import and export trade has grown significantly since April. An import and export volume of 575.69 billion yuan ($84.66 billion) has been recorded.
This figure represents an approximate 6% increase from the previous months. Guangdong foreign trade is expected to continue building momentum throughout the remaining months of the year, when China’s main government will introduce preferential policies which will include tax reductions.
Guangdong’s exports grew by 8.6% to 235.63 billion Yuan in April, which has reversed the downward trend in February and March, according to Guangdong customs.
The rebound in April has significantly helped Guangdong, China’s major foreign trader, to achieve an import and export volume of more than 2.12 trillion yuan in the first four months of this year.
Source: China Daily