V-shaped bounce for new market entities

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SHANGHAI: China’s top market regulator says that the number of newly established market entities, including companies and the self-employed, witnessed a V-shaped recovery in the first half.

This is as market confidence from various businesses continued to get a boost despite ongoing Covid-19 resurgences and a shaky external environment.

According to the State Administration for Market Regulation (SAMR), the total number of market entities hit 161 million as of end-June, up 4.4% compared with the end of last year.

In the first quarter, newly established market entities increased 7.5% year-on-year nationwide. Though witnessing a drop in April, the number quickly recovered to 1.4% in May and a whopping 19.7% in June.

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“The steadily increasing number of market players in the first half showed that market vitality has remained stable after implementation of a series of policies and measures to stabilise the economy,” said Han Jiaping, a senior researcher with the Chinese Academy of International Trade and Economic Cooperation.

To boost confidence of market players amid the epidemic, China has continued to support market entities with measures like tax cuts and fee deferrals.

By July 20, China’s accumulative tax refunds, tax and fee cuts, and tax and fee deferrals topped three trillion yuan (RM1.98 trillion), said the State Taxation Administration.

Notably, the SAMR said that an increasing number of new market entities were new economy-related and such growth in the first six months is significantly higher than the overall level. — China Daily/ANN

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