July 22nd Macroeconomic Index: China's Tax System Reform, Maternity Leave Improvement, and Environmental Progress

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Domestic News

1. The Central Committee of the Communist Party of China: Study the tax system that is compatible with the new business format

2. The Central Committee of the Communist Party of China: Improve the maternity leave system and establish a maternity subsidy system

3. Ministry of Ecology and Environment: In 2023, the carbon emission intensity of the national power industry decreased by 8.78% compared with 2018

4. Shanghai Stock Exchange: The SSE Science and Technology Innovation Board 200 Index will be officially released on August 20

5. The State Administration for Market Regulation held a meeting on the development and promotion of important standards

International News

1. The Baltic Dry Bulk Freight Index fell on a weekly basis, due to the decline in capesize freight rates

2. Russian media: Russian State Duma Chairman Volodin arrived in Cuba for a working visit

3. The EU intends to impose temporary anti-dumping duties on biodiesel imported from China

4. Foreign media: The EU signed a lithium agreement with Serbia to boost the transition to fossil fuels

5. The United States Federal Trade Commission investigates whether oil majors have miscommunicated with OPEC officials

Domestic News

1. The Central Committee of the Communist Party of China: Study the tax system that is compatible with the new business format

The "Decision" points out that the tax system that is compatible with the new business format will be studied. Fully implement the statutory principles of taxation, standardize preferential tax policies, and improve the support mechanism for key areas and key links. Improve the direct tax system, improve the individual income tax system that combines comprehensive and categorical income, standardize the income tax collection policies for business income, capital income and property, and implement a unified taxation of labor income. Deepen the reform of tax collection and management.

2. The Central Committee of the Communist Party of China: Improve the maternity leave system and establish a maternity subsidy system

The "Decision" points out that it is necessary to improve the support and service system for population development. Focusing on coping with the aging population and declining birthrate, we will improve the population development strategy, improve the population service system covering the whole population and the whole life cycle, and promote the high-quality development of the population. Improve the policy system and incentive mechanism for childbirth, and promote the construction of a childbirth-friendly society. Effectively reduce the cost of childbirth, parenting and education, improve the maternity leave system, establish a maternity subsidy system, improve the level of basic childbirth and children's medical public services, and increase the deduction of individual income tax. Strengthen the construction of an inclusive childcare service system, and support the development of various models such as employer-run childcare, community-participated childcare, and family childcare stations. Grasp the objective law of population flow, promote relevant public services to follow people, and promote the reasonable collection and orderly flow of urban and rural and regional populations.

3. Ministry of Ecology and Environment: In 2023, the carbon emission intensity of the national power industry decreased by 8.78% compared with 2018

The relevant person in charge of the Ministry of Ecology and Environment said at the 2024 China Carbon Market Conference on July 21 that in 2023, the carbon emission intensity of the national power industry dropped by 8.78% compared with 2018, and the carbon price formed decided the benchmark price for various carbon financial activities, and the carbon pricing mechanism with the national carbon emission trading market as the main body is gradually forming. According to statistics, in 2023, the national carbon emission intensity (carbon dioxide emissions per unit of thermal power generation) decreased by 2.38% compared with 2018, and the national electricity carbon emission intensity (carbon dioxide emissions per unit of electricity generation) decreased by 8.78% compared with 2018. The market-oriented role of controlling greenhouse gas emissions and promoting the adjustment of energy structure is becoming increasingly apparent. (SSE News)

4. Shanghai Stock Exchange: The SSE Science and Technology Innovation Board 200 Index will be officially released on August 20

To reflect the performance of securities listed on the SSE STAR Market in a timely manner and provide the market with multi-dimensional investment targets and performance benchmarks, the Shanghai Stock Exchange and China Securities Index Co., Ltd. will officially release the SSE STAR Market 200 Index on August 20, 2024. The SSE STAR Market 200 Index selects 200 securities with small market capitalization and good liquidity from the SSE STAR Market as a sample. The SSE STAR Market 200 Index, together with the SSE STAR Market 50 Component Index and the SSE STAR Market 100 Index, constitute the SSE STAR Market Scale Index Series, which reflects the overall performance of the securities of listed companies with different market capitalizations in the SSE STAR Market.

5. The State Administration for Market Regulation held a meeting on the development and promotion of important standards

On July 18, the State Administration for Market Regulation (National Standards Committee) organized a meeting to thoroughly implement the important decisions and arrangements of the Party Central Committee and the State Council on promoting the upgrading of standards and giving full play to the leading role of standard upgrading, and accelerate the formulation and revision of standards in important areas and key links. The meeting pointed out that all departments, industry associations, and technical committees should have refined tasks and measures, consolidated responsibilities at all levels, solidly promoted the implementation of the decisions and deployments of the Party Central Committee and the State Council, and promoted the development of standards in important areas and key links in a strong and orderly manner. The meeting emphasized that it is necessary to thoroughly study and implement the spirit of the Central Economic Work Conference and the Fourth Meeting of the Central Financial and Economic Commission, deeply understand the new requirements of the Party Central Committee and the State Council for the improvement of standards, adhere to the guidance of standards, strengthen the effectiveness of standards, grasp the right direction, and better serve the overall situation of high-quality development with standards. The meeting required that work efficiency should be further improved, process management should be strengthened, work coordination should be strengthened, publicity and implementation should be promoted, and relevant standard development tasks should be completed on time and with good quality. (State Administration for Market Regulation)

International News

1. The Baltic Dry Bulk Freight Index fell on a weekly basis, due to the decline in capesize freight rates

The Baltic Dry Freight Index slipped this week due to lower capesize freight rates. The Baltic Dry Index slipped 10 points, or 0.5%, to 1,902. The index slipped 4.3% for the week. The capesize freight index slipped 34 points, or 1.1%, to 2,973, the biggest weekly decline since May 17. The average daily profit of capesize ships fell by $289 to $24,652. The Panama freight index was flat at 1714. The average daily profit of Panama ships rose by $4 to $15,427. The Supramax bulk carrier freight index rose 4 points, or 0.3%, to 1,374 points. The Handysize index rose 3 points to 752.

2. Russian media: Russian State Duma Chairman Volodin arrived in Cuba for a working visit

According to TASS, Russia State Duma Chairman Volodin arrived by plane at José Martí International Airport in Havana, the capital of Cuba, for a working visit to Cuba. According to the report, Volodin will meet with Esteban·Lasso, President of the National Assembly of People's Power of Cuba. Volodin arrived in Cuba by plane from Nicaragua, the report mentions, after representing Russia at a commemorative event in Managua, the capital of Nicaragua, on July 19. He also met with Nicaragua President Daniel·Ortega.

3. The EU intends to impose temporary anti-dumping duties on biodiesel imported from China

The European Biodiesel Board said on July 19, local time, that in a pre-disclosure document released on the same day, the European Commission announced that it would impose temporary anti-dumping duties of 12.8% to 36.4% on biodiesel imported from China within four weeks. However, the EU Biodiesel Commission is "concerned" about the exclusion of sustainable aviation fuel (SAF) from these measures.

4. Foreign media: The EU signed a lithium agreement with Serbia to boost the transition from fossil fuels

According to foreign media reports, the EU is looking for lithium to promote its transition from fossil fuels and help it compete in the global clean technology race. For the past three years, the EU has been carrying out a task called "raw material diplomacy", signing resource agreements with 13 countries including Canada, Ukraine, Kazakhstan, Rwanda, Argentina and Namibia. Now, there's a new name: Serbia. On Friday, Serbia President Vučić, along with Germany Chancellor Olaf Scholz and European Commission Vice President Ševčovic, announced a new "strategic partnership" in the areas of raw materials, battery supply chains and electric vehicles.

5. The United States Federal Trade Commission investigates whether oil majors have improper communications with OPEC officials

According to foreign media reports, the United States Federal Trade Commission is investigating whether executives of several large oil companies, including Hess, Occidental Petroleum and Diamondback Energy, had improper communications with OPEC officials. Investigators at the FTC are looking for evidence that executives are trying to collude with OPEC officials about oil market dynamics, according to people familiar with the matter. According to Under United States antitrust law, such communications, especially about pricing and production, may be illegal.

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