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[SMM Steel Market Morning News] the new size of special debt this year is expected to increase infrastructure investment by 1.9 trillion yuan.
Apr 8,2020 08:59CST
translation
Source:SMM
The content below was translated by Tencent automatically for reference.

Wednesday, 8 April 2020

Breakfast news

 

Rising factor

1. The State Council: decides to continue to implement part of the tax support policy for inclusive finance and microfinance companies

Premier Li Keqiang presided over an executive meeting of the State Council on April 7. The meeting decided to implement the linkage of fiscal and financial policies and extend some of the expired tax preferential policies until the end of 2023. Including: interest income from loans of 1 million yuan or less granted by financial institutions to small and micro enterprises, individual industrial and commercial households and farmers shall be exempted from VAT; interest income from loans of 100000 yuan or less to farmers and premium income from insurance business for breeding and aquaculture shall be included in the taxable income tax at 90 per cent of the income tax; The interest income of small loan companies with loans of 100000 yuan or less shall be exempted from VAT, and 90% of the taxable income of enterprise income tax shall be included in the taxable income tax, and the loan loss reserve of 1% of the loan balance at the end of the year shall be allowed to be deducted before income tax.

2. The new scale of special debt this year is expected to increase infrastructure investment by 1.9 trillion yuan.

Some experts estimate that assuming that the new scale of special debt this year is about 3.5 trillion yuan, it is estimated that the total investment in infrastructure will be increased by 1.9 trillion yuan for the whole year. According to the calculation of the completed amount of full-caliber infrastructure investment, the investment in infrastructure will be driven by about 10%. Of this, the total scale of investment in new infrastructure is expected to reach trillions of yuan, driving an increase of 0.7 percentage points in investment in fixed assets that year.

3. State Administration of Taxation and Banking and Insurance Regulatory Commission: increase tax and Banking Cooperation to support small and Micro Enterprises to resume work and return to production

According to CCTV News, the State Administration of Taxation and the Banking and Insurance Regulatory Commission jointly issued a circular today, aiming at the more urgent capital needs of small and micro enterprises during the epidemic period, the State Administration of Taxation and the Banking and Insurance Regulatory Commission jointly issued a circular today. Efforts should be made to help small and micro enterprises return to work and return to production to tide over the difficulties. According to the circular, the provincial tax authorities strengthen cooperation with the banking insurance supervision departments and banking financial institutions, timely sort out the list of small and micro enterprises in the larger industries affected by the epidemic, and push the relevant tax information authorized by the enterprises in accordance with the law, to help banks take the initiative to dock with the needs of enterprises and provide financial services accurately.

3. China Automobile Association: the comprehensive rework efficiency of national automobile dealers is 72.5%.

China Automobile Association: so far, the comprehensive resumption efficiency of dealers in the country is 72.5%. The industry believes that, from the current point of view, it will take some time for the Chinese car market to really recover, but with the continuous promotion of various favorable policies, these will play a certain role in promoting sales, and market demand is expected to increase slowly.

Falling factor

1. New car sales avalanche in Europe in March: 44.4% in the UK, 38% in Germany, 38% in Italy, 85% in Italy

The number of new car registrations in the UK fell 44.4 per cent in March from a year earlier as a result of the new coronavirus epidemic. New car registrations in March were 254684, down 203370 from the same period last year, according to the latest figures from (SMMT), the British carmakers and traders association. March fell even more than during the 2009 financial crisis and was the worst March sales since the late 1990s.

2. 37 benchmark housing enterprises have lowered their target for this year to an average growth rate of only 14%.

As of April 7, 37 benchmark listed housing companies had disclosed sales targets for 2020, with an average expected growth rate of 14%, of which 13 were below 10% and 17 were between 10% and 20%.

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