China Economic Daily Brief Newsletter

CNBF Daily Brief 17.2.2023

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The Beijing Stock Exchange (BSE) will officially launch a market-making trading business on its stock market on February 20, 2023. The move was taken to further promote market reform and innovation, improve the market trading system, and enhance market vitality and resilience.

As of Friday, February 17, a total of 15 market makers have been approved by the China Securities Regulatory Commission for the market-making trading business of listed securities, and 13 of them are to participate in the trading business on the Beijing bourse, according to the BSE.

The introduction of a market-making trading business to the bourse will help reduce investors' transaction costs and will raise market liquidity and stability. The BSE was launched on Nov. 15, 2021. By the end of last year, it had 162 listed companies and more than 5.26 million qualified investors.

China has officially rolled out its across-the-board registration-based initial public offering (IPO) system with relevant rules coming into effect on Friday, February 17, according to the China Securities Regulatory Commission. Of milestone significance in the reform of China's capital market, the move has basically put in place the institutional arrangements for the registration-based system.

The rules involve simplifying listing requirements, optimizing registration procedures, improving the regulations on underwriting and major asset restructuring of listed firms, strengthening oversight and law enforcement, and stepping up the protection of investors.

China's luxury market is expected to usher in a rapid recovery in 2023. According to the global management consulting firm Bain & Company, personal luxury sales in China shrank 10 percent year on year in 2022, ending its five-year streak of exponential growth, but positive conditions are expected to return before the end of the first quarter of 2023.

A report by PricewaterhouseCoopers (PwC) suggests that China will continue to release growth potential as a main driving force of the global luxury market. The PwC estimated that China's luxury market will reach 816 billion yuan (about 119 billion U.S. dollars) in 2025, accounting for about a quarter of the global luxury market share.

China will grant zero-tariff treatment to 98 percent of taxable items originating from Ethiopia, Burundi, and Niger from March 1, 2023, according to the Customs Tariff Commission of the State Council.

The new step is conducive to materialize the spirit of China-Africa friendship and cooperation, helping the least developed countries accelerate their development, and building an open global economy. China will move further to gradually expand such treatment to all the least developed countries that have established diplomatic ties with China, according to the Commission.

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