CBN丨Explainer: all you need to know about the CPC sixth plenary session, and what makes it important

China Business Now李莹亮,实习记者张然 2021-11-10 20:05


Hi everyone. I’m Stephanie LI.


Coming up on today’s program.


  • The 19th Central Committee of the CPC started its sixth plenary session in Beijing on Monday;

  • China's factory-gate inflation hit new record of 13.5% in October.

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


The 19th Central Committee of the Communist Party of China (CPC) started its sixth plenary session in Beijing on Monday, which is scheduled to last until Thursday. More than 370 full and alternate members of the Central Committee, the party’s highest governing body, gathered in Beijing for the plenum ahead of next year’s National Congress, when a major leadership reshuffle is expected.

Xi Jinping, general secretary of the CPC Central Committee, delivered a work report on behalf of the Politburo of the CPC Central Committee and made explanations on a draft resolution on the major achievements and historical experience of the CPC's 100 years of endeavours.

Why are the plenums important? The plenums are a key venue for the party to display unity among the party leadership and indicate the direction of key policies. The current 19th Central Committee was elected in 2017 and will sit until next year’s National Congress, when a new committee will be appointed. At this week’s meeting, Xi will be the third-ever party leader to unveil a historical resolution at the sixth plenum, which will focus on the “major achievements and historical experiences” of the party throughout its 100-year history.

What’s the historical resolution? The “Resolution of the CPC Central Committee on the Major Achievements and Historical Experiences of the Party’s Centennial Struggle” to be discussed at the session, is set to look back at key events in the party’s 100-year history and enshrine Xi’s role as leader, as well as determine the party’s direction for the next few decades. This pivotal document is only the third of its kind since the party’s foundation in 1921, with the first issued by Mao Zedong in 1945 and the second by Deng Xiaoping in 1981. 





  • China's factory-gate inflation hit a 26-year high in October while fresh virus outbreaks and soaring food and energy prices sent consumer prices up, official figures showed Wednesday. 

    The producer price index (PPI), which measures the cost of goods at the factory gate, jumped a bigger-than-expected 13.5 percent year-on-year in October, said the National Bureau of Statistics(NBS). It has been rising for four straight months. "The rise in PPI expanded due to the combination of imported global factors and the tight supply of major domestic energy and raw materials," said NBS senior official. 

    Meanwhile, the consumer price index (CPI), a key gauge of retail inflation, picked up more than expected in October after four months of decline. The CPI hit 1.5 percent, up from 0.7 percent in September owing to a surge of vegetable prices of 16 percent, coronavirus outbreaks and rising transportation costs.


Greater Bay Area, Greater Future


  • Hong Kong’s Chief Executive Carrie Lam said on Tuesday that the government is mulling a plan to allow Hong Kong residents on the Chinese mainland to vote at the city's checkpoints for the upcoming Legislative Council General Election scheduled on Dec 19, when over 4.4 million registered voters will select 90 lawmakers to serve for the next four years.  


Update on COVID-19


  • The Chinese mainland reported 39 new local cases yesterday, including 17 from Liaoning and 8 from Henan.


Next on industry and company news


  • Chinese bike-sharing startup Hello Inc. raised $280 million in a funding round led by Alibaba and Ant Group, the company said Tuesday. It was e-commerce giant Alibaba’s first investment in Hello, although its finance arm Ant has been a longtime backer and the largest shareholder of the bike-sharing company.  


  • Kaisa Group Holdings apologized for overdue repayment of wealth management products it guaranteed, saying the Chinese property developer is taking measures to resolve the issue, including the sale of top-notch assets in Shenzhen and Shanghai. A meeting of investors’ representatives scheduled for today is also canceled. 


  • Battery giant CATL will become a strategic investor in Hozon Auto by participating in the Chinese electric car startup’s Series D2 funding round after the pair signed a wide-ranging partnership agreement. 


Wrapping up with a quick look at the stock market


  • Chinese stocks closed lower on Wednesday, with the coal industry cascading as thermal coal futures hit a two-month low, while pharmaceuticals and IT led the gains. The Shanghai Composite fell 0.41 percent, and the Shenzhen Component went down 0.38 percent. The Hang Seng Index closed 0.74 percent higher.


Biz Word of the Day


  • Strategic Investors refer to individual investors or firms who invest with the goal of acquiring strategic advantages rather than simply financial returns. A Strategic Investor often wants access to the invested business technology, ideas, services, or products, to enhance its own business model.



Executive Editor: Sonia YU

Editor: LI Yanxia

Host: Stephanie LI

Writer: Stephanie LI, ZHANG Ran, HE Liuying

Producer: XIANG Xiufang

Sound Editor: ZHANG Ran, Andy YUAN

Graphic Designer: ZHENG Wenjing, LIAO Wanni

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

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(作者:李莹亮,实习记者张然 编辑:李艳霞)