first quarter GDP growth 4.8%
According to the data released by the National Bureau of statistics on April 18, China’s GDP in the first quarter was 270178 billion yuan, a year-on-year increase of 4.8% at constant prices and 1.3% month on month increase over the fourth quarter of 2021.
In terms of industry, in the first quarter, the added value of industries above designated size increased by 6.5% year-on-year. In March, the added value of industries above Designated Size actually increased by 5.0% year-on-year, down 2.5 percentage points from the previous value.
In terms of consumption, in the first quarter, the total retail sales of social consumer goods was 108659 billion yuan, a year-on-year increase of 3.3%. In March, the total retail sales of social consumer goods decreased by 3.5% year-on-year and 1.93% month on month.
In terms of investment, in the first quarter, the national fixed asset investment (excluding farmers) was 104872 billion yuan, a year-on-year increase of 9.3%.
[comments] under the influence of multiple pressures such as the intensification of overseas geopolitical conflicts and the multi-point outbreak of China’s epidemic, it was not easy for China’s economy to achieve a stable start in the first quarter, which was mainly due to the fact that China’s main economic data in the first two months of this year were far better than expected. However, since March, uncertainties have increased and downward pressure on the economy has increased. The impact of the epidemic on economic operation will begin to appear in the second quarter. The industry believes that in order to achieve the target growth rate of about 5.5% in the whole year, the steady growth policy urgently needs to be increased in the second quarter.
annual payment limit of individual pension 12000 RMB
The opinions of the general office of the State Council on promoting the development of individual pensions was published on April 21. The opinions put forward that we should promote the development of individual pensions with government policy support, individual voluntary participation and market-oriented operation, and improve the multi-level and multi pillar old-age insurance system.
The opinion stipulates that workers who participate in the basic old-age insurance for urban employees or the basic old-age insurance for urban and rural residents within the territory of China may participate in the individual pension system. The upper limit of individual pension paid by participants is 12000 yuan per year. The State formulates preferential tax policies to encourage qualified personnel to participate in the individual pension system and receive individual pensions in accordance with regulations.
[comments] since the 1990s, China has gradually established a multi-level and multi pillar endowment insurance system with the first pillar basic endowment insurance as the main body, the second pillar professional endowment insurance and the third pillar individual endowment insurance as the supplement. However, for a long time, the development of the three pillars has been extremely uneven. The first pillar, the basic endowment insurance for urban employees, has assumed almost all the pension responsibilities. In recent years, with the deepening degree of aging, the pressure on revenue and expenditure has become increasingly prominent. Therefore, it is necessary to establish a personal pension system as soon as possible and expand the source of pension income. For individuals, on the one hand, the introduction of personal pension can increase the channels of Personal Pension Asset reserves; On the other hand, qualified personal pension products are also a safe way of investment.
national Standing Committee approved 3 nuclear power projects
At the executive meeting of the State Council held on April 20, the measures to ensure and increase energy supply were determined to improve the guarantee capacity of energy for economic and social development.
The meeting pointed out that first, we should give play to the main energy role of coal. Through nuclear capacity increase, production expansion and new production, 300 million tons of coal capacity will be added this year.
Second, we should promote the transformation of energy conservation and emission reduction, flexibility and heating of coal-fired power units, and improve energy efficiency. The scale of transformation in the whole year exceeded 220 million kilowatts.
Third, nuclear power should be developed in an orderly manner on the premise of strict supervision and ensuring absolute safety. After years of preparation and comprehensive evaluation and review, three new nuclear power unit projects in Sanmen, Zhejiang, Haiyang, Shandong and Lufeng, Guangdong have been approved.
comments energy is the basic support for economic and social development. The meeting once again stressed the importance of energy supply, and proposed to take precautions to promote the construction of energy projects with mature conditions and development needs, which is beneficial to both the present and the long term.
Among them, three new nuclear power unit projects have received nuclear preparation and attracted attention. This is the first time since April 2021 that a new nuclear power project has been approved by the State Council. Experts believe that with the continuous improvement of China National Nuclear Power Co.Ltd(601985) technology and equipment level, the development pace of nuclear power industry is expected to accelerate during the 14th Five Year Plan period. Under the background of “double carbon”, the development of nuclear power is expected to usher in new development opportunities.
CSRC propaganda institutions expand the proportion of equity investment
On April 21, the CSRC held a symposium for the main principals of the national social security fund and some large banking and insurance institutions. The meeting analyzed the current economic and financial situation at home and abroad, and listened to opinions and suggestions on promoting the high-quality development of the capital market and guiding more medium and long-term funds into the market.
The meeting proposed that pension, banking and insurance institutions and various asset management institutions are the representatives of professional institutions among investors and the most important long-term capital sources in the capital market. Professional institutions should make contributions in four aspects: enhancing investment capacity, promoting the implementation of long-term assessment, giving full play to the function of professional investors and increasing the proportion of equity investment.
[comments] recently, relevant departments intensively put forward measures to steadily promote the entry of medium and long-term funds into the market Zhongtai Securities Co.Ltd(600918) chief economist Li Xunlei believes that during the “14th five year plan” period, policies will guide more institutional investors, especially take more measures to encourage China’s insurance funds, pensions and social security funds to increase the proportion of entering the market. These measures will further stabilize the expectations of investors and other market participants, boost the confidence of all parties and maintain market stability.
people people’s currency depreciates by more than 1000 basis points a week
This week, the RMB depreciated sharply against the US dollar. According to the data of China foreign exchange trading center on April 22, the central parity rate of RMB against the US dollar was reported at 6.4596 that day, which was reduced for the third consecutive trading day, with a cumulative reduction of 876 basis points.
In the foreign exchange market, the spot exchange rate of onshore and offshore RMB against the US dollar also fell below 6.5, with a cumulative depreciation of more than 1000 basis points in the three trading days.
[comments] caused the depreciation of RMB exchange rate recently, which was mainly affected by the trend of international financial market and multiple factors of market supply and demand. Among them, the Fed may accelerate the pace of interest rate hike is the most direct factor. Due to the high inflation in the United States and the frequent Hawking of the Federal Reserve, the US dollar and US bonds rose together, and the US dollar index reached a high in recent years; The RMB exchange rate fell under pressure and made a rapid correction.
In this regard, Wang Chunying, deputy director of the State Administration of foreign exchange and spokesman, said at the press conference of the state information office on the 22nd that China’s foreign exchange market has been continuously strengthened in recent years and has the foundation and conditions to adapt to the current round of Fed policy adjustment. He believes that the RMB exchange rate will fluctuate in both directions in the future and will remain basically stable at a reasonable and balanced level.
