ByYang Zhijie Yuan Tianyi
China’s income from information technology services grew rapidly, achieving a year-on-year growth of 16.7% in the first quarter this year, according to data released by official website of the Ministry of Industry and Information Technology on Wednesday.
China’s Internet and related service enterprises above designated size earned 215.3 billion yuan (about US$ 30.58 billion) in the quarter, up 1.5% year-on-year, and the growth rate dropped 15.8% year-on-year.
Operating profit reached 18.44 billion yuan, down 24.9% year on year. Investment in research and development was flat year on year, the data showed.
In the first quarter, Internet enterprises completed 146.6 billion yuan in revenue from information services including online music and video, online games, news information, online reading, etc., up 11.1% year on year, accounting for 68.1% of Internet business revenue.
The business income of online games and audio and video service enterprises continues to grow rapidly. Beijing, Guangdong, Shanghai, Zhejiang and Fujian, which are among the top five in terms of accumulated income from Internet services, have completed a total of 166.1 billion yuan in Internet services, accounting for 86.6% of the country’s total.
In the first quarter, revenue from Internet enterprises from Internet access and related services and revenue from Internet data services were 7.17 billion yuan and 3.46 billion yuan respectively, up 12.2% and 8.9% year-on-year.
Debt and interest payment delayed to relieve pressure of enterprises
The Chinese government has taken measures to redue taxes and fees for major enterprises, while increasing loans and easing the financial pressure for small and medium-sized micro-enterprises.
In March this year, five departments, including the Bank of China Insurance Regulatory Commission, jointly introduced measures to allow small and medium-sized micro-enterprises that cannot repay loans on time due to the COVID-19 epidemic to apply for deferred repayment. At present, nearly 1 trillion yuan loans enjoy this policy, according to the official website of CCTV.
China intensifies efforts to stimulate economic recovery
China, the world’s second-largest economy, is stepping up efforts aimed at spurring a rapid economic rebound from the novel coronavirus pandemic, according to a report by China Daily on Thursday.
Policymakers in China are mobilizing capital and resources to assist those affected by the COVID-19 outbreak, ensuring that millions of businesses are adequately equipped to handle the impact.
Research carried out by China Daily shows that since the outbreak emerged in China in December last year, a series of measures have been adopted by the government to support the resumption of production and reopening of businesses－including the introduction of fiscal, monetary, financial and trade policies.
The research involved a comprehensive analysis of policy documents issued by major ministries and commissions in the past two months. It found the most frequently mentioned keywords in the documents were “small and medium-sized enterprises (SMEs)”, “resumption of production”, “protecting supply chain stability”, “employment protection” and “preferential tax policies”.
A series of support measures, especially those aimed at reducing interest rates, extending debt rollovers, renewing loans and providing specific credit lines for production to resume at SMEs, are mentioned many times by several bodies, including the National Development and Reform Commission, the Ministry of Finance and the State Administration of Taxation.
Preferential policies have also been announced for specific industries. For example, the “Internet Plus” concept has been highlighted－a reference to the application of the internet and other information technology in conventional industries.
Policymakers have suggested that enterprises make full use of China’s rapidly developing internet services, accelerate digitalization and promote consumption upgrades.
PetroChina and Sinopec both suffer revenue loss Q1
Petro China and Sinopec, the two state-owned large enterprises, have released their first quarterry reports respectively, showing that the two companies both suffered rerenue loss in the first quarter this year.
PetroChina realized operating income of 509.098 billion yuan (about US$ 72.315 billion), down 14.4% year on year. The net loss attributable to the shareholders of the parent comipany was 16.230 billion yuan, a decrease of 26.479 billion yuan from the net profit of 10.249 billion yuan in the same period last year due to the decrease in operating income and the loss of inventory due to the sharp drop in oil prices.
Meanwhile, Sinopec lost 19.782 billion yuan (about US$ 2.810 billion) in the first quarter this year compared with a profit of 14.763 billion yuan it made in the same period last year. Sinopec’s loss in the first quarter was the highest in history, with an average daily loss of 217 million yuan.
BOC to assume due responsibility under legal framework on Crude Oil Treasure issue
The Bank of China (BOC) issued a statement Wednesday on the situation of “Crude Oil Treasure” products, saying that it will continue to communicate and negotiate with customers in a serious and responsible manner and assume its due responsibilities under the legal framework.
At the same time, BOC is conducting a comprehensive review of product design, business strategy, risk control and other links and processes to find out the existing problems and hidden dangers, said the statement.
At present, BOC is actively studying and trying to come up with opinions that respond to customers’ reasonable demands as soon as possible.
BOC has formally started its investigation on the reason for the abnormal price fluctuation in the crude oil futures market on April 21.
Everbright Bank’s loan balance stands at 523.5 bln yuan for small and micro enterprisess
Everbright Bank reported Wednesday that by the end of March, the bank’s loan balance for small and micro enterprises was 523.5 billion yuan (about US$ 74.36 billion), an increase of 23 billion yuan over the beginning of the year.
The bank said in its website that in the face of the sudden outbreak of COVID-19, it fully guaranteed the supply of medical and health care and living materials as well as the credit demand for small and medium-sized micro-enterprises to resume work and resume production.
In addition, as of the end of March, the weighted average interest rate of Everbright Bank’s inclusive loans was 5.18%, 68BP, lower than last year. The bank’s international settlement volume reached 212.1 billion yuan (about US$ 30.13 billion), up 25% year-on-year, which was 31.6 percentage points higher than the national foreign trade import and export growth in the first quarter.
(The story written by Yang Zhijie and Yuan Tianyi, was first published at Atimescn.com, and was translated by Nadeem Xu)