Macro comments
Premier Li Keqiang presided over the executive meeting of the State Council on March 21 to determine the policy arrangements for the implementation of large-scale value-added tax rebate, so as to provide strong support for stabilizing the macro-economic market; We will deploy comprehensive measures to stabilize market expectations and maintain the steady and healthy development of the capital market. （Wind）
Comments: in order to bail out enterprises, this year, the state has introduced the largest and targeted VAT retention and tax rebate measure in history. China has implemented a new combined tax support policy, with both tax reduction and tax rebate. This year, the tax rebate will be about 1.5 trillion yuan. The implementation of the tax rebate will ease the pressure on enterprises’ funds, and the active fiscal policy will enhance market confidence. Due to the large number of small and micro enterprises and the corresponding number of households with tax retention and credit, small and micro enterprises have become the key object of VAT retention, credit and refund this time. The people’s Bank of China turned over more than 1 trillion yuan of balance profits to the central government according to law, which is mainly used to offset tax rebates and increase local transfer payments. This is the coordination and linkage between monetary policy and fiscal policy, increase the support of prudent monetary policy to the real economy and stimulate economic activity.
Key macro developments
[1] Beijing issued the implementation plan of Beijing Municipality on accelerating the development of affordable rental housing, which clearly puts forward the phased construction goal of affordable housing in Beijing: strive to build and raise 400000 affordable rental housing during the 14th Five Year Plan period, accounting for 40% of the total supply of new housing. (Beijing Daily)
[2] on March 22, the website of China Automobile Association showed that the data released by the National Bureau of statistics compiled by China Automobile Industry Association showed that from January to February 2022, the investment in fixed assets in automobile manufacturing industry increased rapidly, and the growth rate was slightly lower than that in the same period. From January to February 2022, the fixed asset investment in automobile manufacturing industry increased by 11.3% year-on-year, and the growth rate slowed down by 4.8 percentage points compared with the same period of last year. （Wind）
