Hi everyone. I’m Stephanie LI.

大家好，我是主持人李莹亮。

Coming up on today’s program.

重点提要

The State Council steps up management of local government debt in an effort to ease risks;

China accounts for 30% of global manufacturing output in 2021.

Here’s what you need to know about China in the past 24 hours

中国经济要闻

China's State Council on Monday unveiled the guidelines of a fiscal reform for governments below the provincial level to strengthen the management of local debt while improving a debt quota mechanism.

China will establish and improve the transfer payment system and gradually increase the scale of general transfer payments prioritising underdeveloped areas, the guideline said, adding that local governments will appropriately strengthen the construction of education, science and technology research, social security, food security, as well as major infrastructure projects.

The guidelines also asked local governments to strengthen debt management in development zones, resolutely curb the increase in hidden local government debt, reasonably control the scale of government debt, and effectively fend off debt risks.

The guidance added that the local government debt quota mechanism should be improved, and the debt quota should match the revenues and project income.

The latest reform comes against the backdrop of the pandemic and the increasingly fluctuating external economic environment, in addition to mounting pressures from both reductions of fiscal income and expenditure increases.

Recent statistics show that financial departments at all levels have stepped up efforts to implement proactive fiscal policies. In the first two months, the progress of budgetary expenditure was 14.3 percent, the highest in the past five years, according to data from the Ministry of Finance.

The quota of local special bonds for construction of projects has been fully issued, totalling about 1.25 trillion yuan ($185 billion) by the end of March. At present, local governments have reserved 71,000 special bond projects, Vice Minister of Finance, Xu Hongcai, said during a press conference on April 12.

The reform also comes as Chinese authorities have stressed several times the importance of curbing the increase of new "hidden debt" and stabilise the mechanism that settles existing "hidden debt" to guard against systemic financial risks since last year.

国务院办公厅周一印发《关于进一步推进省以下财政体制改革工作的指导意见》（下称《意见》），部署进一步推进省以下财政体制改革的任务举措。《意见》要求，清晰界定省以下财政事权和支出责任。合理划分省以下各级财政事权，明晰界定省以下各级财政支出责任。同时，加强地方政府债务管理，健全地方政府债务限额分配机制。

《意见》明确了五个方面重点改革措施。一是清晰界定省以下财政事权和支出责任。合理划分省以下各级财政事权，明晰界定省以下各级财政支出责任。二是理顺省以下政府间收入关系。参照税种属性划分收入，规范收入分享方式，适度增强省级调控能力。三是完善省以下转移支付制度。厘清各类转移支付功能定位，优化转移支付结构，科学分配各类转移支付资金。四是建立健全省以下财政体制调整机制。建立财政事权和支出责任划分动态调整机制，稳步推进收入划分调整，加强各类转移支付动态管理。五是规范省以下财政管理。规范各类开发区财政管理体制，推进省直管县财政改革，做实县级“三保”保障机制，推动乡财县管工作提质增效，加强地方政府债务管理。

财政部副部长许宏才4月12日表示，截至2022年3月末，各省份基本都已组织开展了提前下达额度的发行工作，累计发行约1.25万亿元，占提前下达额度的86%；各级财政部门累计向项目单位拨付债券资金8528亿元，占已发行新增专项债券的68%。今年专项债储备项目达到7.1万个。

专家表示，《意见》是对1994年分税制以来地方财政体制的一次全面性、系统性的构建。未来，随着《意见》在各地的贯彻实施，我国地方财政管理体制将迎来一次较为有深度的完善和调整，地方财政运行的公平与效率、管理的法制与规范将得到有效提高，财政资金矛盾将会在一定程度上得到缓解，以省为主体的上下一体的财政发展新格局将会在国家治理中发挥更大作用。

China’s industrial added value increased from 20.9 trillion yuan in 2012 to 37.3 trillion yuan in 2021, with an average annual growth rate of 6.3 percent, well above the global average of about 2 percent for the period, Xin Guobin, vice minister of industry and information technology, told a press conference on Tuesday. China accounted for 30 percent of the global manufacturing output in 2021, marking an increase from 22.5 percent in 2012 as the industry grew bigger and stronger, Xin said. During the same period, the manufacturing value-added output had expanded from 16.98 trillion yuan to 31.4 trillion yuan.

中国制造业增加值占全球近三成 : 6月14日，在中宣部举行的“中国这十年”系列主题新闻发布会上，工信部副部长辛国斌透露，2012年至2021年，我国工业增加值从20.9万亿元增长到37.3万亿元；以不变价计算，工业增加值年均增长6.3％，远高于同期全球工业增加值2％左右的年均增速；制造业增加值从16.98万亿元增加到31.4万亿元，占全球比重从22.5％提高到近30％。

China will strive to have 3,500 registered airplanes for general aviation by the end of the 14th Five-Year Plan (2021-2025) period, according to a new plan by the Civil Aviation Administration of China on Monday. The number of registered airports for general aviation will top 500, and no less than 25 provincial-level regions will provide general aviation emergency rescue services by end-2025.

“十四五”末在册通用航空器3500架：6月13日, 民航局印发的《“十四五”通用航空发展专项规划》明确道，“十四五”末，力争在册通用航空器达到3500架，在册通用机场达到500个，开展通用航空应急救援服务的省份不少于25个。

Moving on to regional highlights

区域经济新闻

Several cities in South China’s Guangdong province have lowered the minimum down payment requirement for the prospective first-home buyers. Zhanjiang, Yangjiang, Zhaoqing and Maoming have trimmed the minimum down payment ratio for starter home buyers to 20 percent from 25 percent. The deposit requirement for first-time home buyers in Shanwei has also been cut to 25 percent.

广东多地下调首套房贷首付比例：6月10日起，广东湛江、阳江、肇庆、汕尾、茂名等陆续下调首套房贷款最低首付比例，其中湛江、阳江、肇庆、茂名的首套商业性个人住房贷款，最低首付款比例由25%下调至20%；汕尾首套房首付不低于25%，贷款未结清二套房首付不低于30%。

Update on COVID-19

疫情简报

Zhongshan Hospital of Fudan University announced late Monday that it is recruiting 60 test subjects after last month launching an exploratory Phase I clinical study of the mRNA Covid-19 vaccine developed by the Shanghai-based biotech company Stemirna Therapeutics. The trial is conducted from May to December this year.

上海中山医院招募mRNA疫苗受试者：上海中山医院周一晚发布消息，称该院正在招募一项新冠mRNA疫苗的一期临床探索性研究受试者，该试验于今年5月至12月之间进行，持续6个月时间。此次试验将招募60例符合要求的受试者，对这款mRNA疫苗的安全性、耐受性和免疫原性及免疫强化进行随机、开放、对照研究。中山医院试验的这款疫苗为上海斯微生物研发的新冠mRNA疫苗。

Next on industry and company news

产经消息及公司新闻

China’s real estate market rebounded in May from April thanks to looser policies, as 14 out of the country’s top 20 real estate companies have released their May sales reports by Monday and saw an 11.1 percent jump in sales in May from April. Sales at these 14 companies plunged 52.8 percent from a year ago and 45.2 percent over the five-month period January to May. While for those in the top 100, sales plummeted 59.4 percent year on year and 52.7 percent in the first five months.

头部房企5月销售回暖：截至12日，全国排名前20位的房地产公司中，除了华润置地、绿地等6家房企外，已有14家房企发布了5月份未经审核的营运数据。数据显示，14家头部房企的5月单月环比增幅约为11.1%；前5月累计销售金额同比降幅、单月同比降幅分别45.2%、52.8%，销售仍有较大的下行压力。但相较于同期百强房企52.7%、59.4%的下降幅度，头部房企的销售5月份已出现改善趋势。

A venture controlled by the founder of Chinese automaker Zhejiang Geely Holding agreed to acquire a 79-percent stake in Chinese smartphone maker Meizu, according to a statement published Monday by the State Administration of Market Regulation. The statement didn’t disclose the financial terms of the deal.

吉利旗下公司拟收购魅族79%股权: 6月13日，国家市场监督管理总局发布公示信息，吉利控股集团董事长李书福李书福旗下星纪时代已与魅族科技以及涉及交易的股东签署协议，星纪时代拟收购珠海魅族79.09％的股权。魅族方面回复称，本次交易尚需履行相关监管机构的审批手续，交易细节还在协商中。

The Haikou-based Hainan Airlines said in a statement yesterday that Wang Yingming resigned from the positions of the carrier’s legal representative, chairman, director, and other related positions due to a personnel adjustment. Former China Southern Airlines executive Cheng Yong will succeed Wang as the new chairman and legal representative. This is the second executive management reshuffle this year.

海航任命新董事长：海南航空控周一发布公告称，由于人事调整，王英明申请辞去公司法定代表人、董事长、董事及董事会下属专门委员会相关职务，新任董事长兼法定代表人由南航前高管程勇接替出任。这是今年海航控股第二次更换董事长人选。

Swedish furniture giant Ikea announced Monday that it will close one of its five stores in Shanghai, marking its second outlet termination in the mainland this year amid an accelerating shift to online shopping due to the Covid-19 pandemic. The two-year-old store in Yangpu district will shut its doors on July 7.

宜家将关闭上海杨浦店：13日，宜家中国宣布，将在7月初开始关闭开业仅2年多时间的上海杨浦商场。这是自4月1日关闭贵州店后，宜家在中国关闭的第二家门店。

Switching gears to the financial sector

金融市场要闻

China's central bank on Monday asked financial institutions to increase financing for the country's water conservancy projects. Policy and development banks should make good use of the newly-granted 800 billion yuan credit line and increase support for major national water conservancy projects.

央行加大支持水利项目：6月13日，人民银行、水利部联合召开金融支持水利基础设施建设推进工作电视电话会议。会议要求，各金融机构切实加大对水利项目的金融支持力度。政策性、开发性银行要用好新增的8000亿元信贷额度，加大对国家重大水利项目的支持力度。

Chinese van-hailing platform GogoX Holdings intends to raise HK$671 million via its IPO in Hong Kong in less than two weeks to broaden its services and acquisitions. The Huolala rival priced its shares at HK$21.50 apiece, according to the firm’s announcement today. GogoX plans to issue 31.2 million shares in Hong Kong, some 90 percent of which should be available globally. Share trading is expected to begin on June 24.

快狗打车冲刺香港IPO：快狗打车14日在港交所公告，于2022年6月14日至6月17日招股，拟全球发行3120万股，其中香港发售占10%，国际发售占90%，另有超额配股权15%，香港IPO招股价每股21.5港元，每手200股，入场费4343.35港元。公司计划通过香港IPO筹资约6.71亿港元（8550万美元），预计6月24日上市。

Wrapping up with a quick look at the stock market

最后来看股市收盘情况

Chinese A-share markets closed at 3-month highs on Tuesday, as the major indices rebounded sharply after opening lower in the morning due to an overnight slump in U.S. stocks. The Shanghai Composite Index finished up 1.02 percent, while the Shenzhen market edged up 0.2 percent. The Hang Seng Index in Hong Kong closed flat with a strong comeback in the online education sector as Koolearn continued to rally over 23 percent.

周二A股上演深V逆转。受隔夜外围市场大跌影响，沪深两市三大股指早盘低开，午后三大股市反弹，尾盘悉数翻红。沪指涨1.02%，深成指涨0.2%，创业板指涨0.07%。两市成交额10994亿元，连续第三个交易日破万亿。港股恒生指数平收0.01%，恒生科技指数收跌0.06%。在线教育继续拉升，新东方在线涨超23%。

Biz Word of the Day

财经词汇划重点

Transfer payment, also called a government transfer or simply transfer, is a redistribution of income and wealth by means of the government making a payment, without goods or services being received in return. Examples of transfer payments include welfare, financial aid, social security, and government subsidies for certain businesses.

转移支付即政府或企业无偿地支付给个人或下级政府，以增加其收入和购买力的费用。它是一种收入再分配的形式。转移支付的形式包括福利、财政援助、社会保障和某些政府补贴企业。

Executive Editor: Sonia YU

Editor: LI Yanxia

Host: Stephanie LI

Writer: Stephanie LI, XIE Kaishan, JIA Yuxiao

Sound Editor: XIE Kaishan

Graphic Designer: ZHENG Wenjing, LIAO Yuanni

Co-produced by 21st Century Business Herald Dept. of Overseas News & SFC Audio/Video Dept.

Presented by SFC

编委: 于晓娜

策划、编辑：李艳霞

播音：李莹亮

撰稿：李莹亮、谢凯珊、贾雨逍

音频制作：谢凯珊

设计：郑文静、廖苑妮

21世纪经济报道海外部 制作

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（编辑：李艳霞）