Hi everyone. I’m Stephanie LI.
Coming up on today’s program.
Lottery funds will be used to support innovation of college graduates in a bid to address employment challenges;
Guangdong province activates top emergency response for flood.
Here’s what you need to know about China in the past 24 hours
China's Ministry of Finance and Ministry of Education jointly issued a notice on Tuesday to standardize the management for utilizing the Lottery Public Welfare Fund to support the innovation and entrepreneurship oriented education for college students, as the nation is ramping up efforts to promote youth employment.
The notice stressed that the fund will be mainly allocated to support the construction and work of 100 national innovation and entrepreneurship projects in colleges and 100 experimental bases across the country.
The colleges' innovation and entrepreneurship projects will carry out research into training, teaching and evaluation mechanisms based on regional requirements, while constructing targeted courses and training for local teachers. And the experimental bases will mostly be adopted for innovation and entrepreneurship training. Allocated funds can be specifically used for entrepreneurship training, incubation guidance, project roadshows and other related expenditures.
The State Council published guidance in October 2021 to support the innovation and entrepreneurship of college students, including a range of measures such as increasing the maximum individual loan amount for college graduates to 200,000 yuan, and the loan for eligible small and micro-enterprises could get up to 3 million yuan.
In Guangdong, eligible self-employed college students can apply for a one-time start-up grant of 10,000 yuan, as well as an annual rent subsidy of 4,000 to 6,000 yuan for up to three years. Validated entrepreneurial projects can enjoy funding of 50,000 to 200,000 yuan in accordance with local standards.
Meanwhile, the State-owned Assets Supervision and Administration Commission of the State Council (SASAC) said on Tuesday that state-owned enterprises (SOEs) plan to beef up hiring of university graduates this year.
In the case of East China's Jiangsu Province, local firms falling under the purview of the provincial unit of the SASAC earmarked at least 50 percent of their 2022 annual recruiting numbers for college graduates, media reported earlier in June.
China is expected to see a record 10.76 million new graduates from the country's universities and colleges in 2022, marking a year-on-year increase of 1.67 million.
A draft amendment to the Antimonopoly Law was submitted to China's top legislature for a second review on Tuesday, with revisions in areas including the safe harbour mechanism, platform economy and concentration of business operators. The draft clarified the application range of "safe harbour". When an operator and counterpart reach an agreement that could result in a monopolistic situation, if the former can prove that its market share in the relevant market is lower than the standards set by the State Council's antimonopoly law enforcement department and meanwhile meets the department's other conditions, the agreement will not be prohibited.
The flood control and drought relief headquarters of south China's Guangdong Province upgraded its flood control emergency response to Level I at 7 p.m. Tuesday. The headquarters ordered governments of areas at risk to promptly suspend schools, production, traffic or businesses if necessary. Persistent heavy rains have continued to batter the province, swelling rivers, triggering landslides and prompting the evacuation of residents in the past week.
Trade between China and BRICS countries stood at 1.31 trillion yuan from January to May, surging 12.1 percent year-on-year, data from China's General Administration of Customs (GAC) showed on Tuesday.
Next on industry and company news
Demand for electricity in many Chinese localities has set new records amid searing heat and robust factory activity due to an accelerating economic recovery from recent COVID-19 outbreaks as media reported on Tuesday. The maximum power demand so far this month reached 844 million kilowatts.
Chinese healthcare-related stocks tumbled in Hong Kong on speculation that China is reportedly mulling a ban on third-party platforms from selling medicines online. Alibaba Health Information sank 14 percent on Wednesday, the most in 11 months, while JD Health tumbled 15 percent. Regulators might clarify the boundaries between self-operated and third-party platforms when engaging in online drug sales, media reported Tuesday.
China's National Radio and Television Administration and Ministry of Culture and Tourism jointly issued a set of regulations on Wednesday concerning the behaviour of live streamers, as they should maintain an appropriate political direction. The regulation specified that streamers will be required to obtain relevant qualifications before providing live-streaming content that requires a relatively higher level of professional knowledge.
GAC Honda Automobile, a JV between Honda China and Guangzhou Automobile Group, will invest around 3.5 billion yuan (JPY70 billion) to build an EV plant with an annual capacity of 120,000 units in Guangzhou, to be completed by 2024, Honda said in a statement on Monday. Earlier this year, a JV between Honda China and Dongfeng Motor Group announced it will build a factory to produce 120,000 EVs a year in central China’s Wuhan.
Switching gears to the financial sector
Chinese lenders, including Industrial and Commercial Bank of China and Bank of Chongqing, were handed more than 60 fines by regulators last weekend due to their insufficient anti-money laundering control. The banking industry was fined 44.5 million yuan in the week ended June 17, with some of the individual penalties exceeding 1 million yuan.
Wrapping up with a quick look at the stock market
Chinese stocks ended lower on Wednesday, as extreme weather in some parts of the country added uncertainty to economic recovery. By the market close, the benchmark Shanghai Composite was down 1.2 percent and the Shenzhen Component closed 1.43 percent lower. Hong Kong’s Hang Seng index retreated 2.56 percent as the TECH index slumped 4.37 percent.
Biz Word of the Day
Micro enterprise, also known as a microbusiness, refers to a small business that employs few people. A micro enterprise usually operates with fewer than 10 people and is started with a small amount of capital advanced from a bank or other organization. Most micro enterprises specialize in providing goods or services for their local areas.
Executive Editor: Sonia YU
Editor: LI Yanxia
Host: Stephanie LI
Writer: Stephanie LI, JIA Yuxiao, ZENG Libin
Sound Editor: JIA Yuxiao
Graphic Designer: ZHENG Wenjing, LIAO Yuanni
Produced by 21st Century Business Herald Dept. of Overseas News.
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