XI TO DELIVER SPEECH AT AIIB'S ANNUAL EVENT

President Xi Jinping will deliver a speech at the opening ceremony of the fifth annual meeting of the Board of Governors of the Asian Infrastructure Investment Bank to be held via video link on Tuesday in Beijing, Foreign Ministry spokeswoman Hua Chunying said on Monday.

'DUAL CIRCULATION' NEW CHOICE FOR ECONOMY

That President Xi Jinping has called for protecting market players and stimulating their vitality shows the COVID-19 pandemic has hit the domestic and global economies hard.

Although Xi said in his key speech at a symposium with corporate leaders in Beijing on Tuesday that greater efforts should be made to spur the vitality of market entities and promote entrepreneurship to leverage the strength of the huge domestic market in the face of rising protectionism, a sluggish global economy and a weakening international market, he ruled out the possibility of China closing its doors on other economies. Instead, he said, China will unleash the full potential of its domestic demand, improve connectivity between the domestic and international markets, and better use resources and the two markets to propel stronger and sustainable development.

Only when both the domestic and global markets function smoothly can the Chinese economy overcome the multiple challenges facing it.

The first challenge is the rapidly changing international environment, as the global economy faces recession, international trade and investment are shrinking, international financial markets are fluctuating, and global exchanges have almost come to a halt. To make matters worse, some countries have resorted to protectionism and unilateralism, increasing geopolitical risks. Given these facts, China has no choice but to boost domestic demand in order to maintain a healthy economic growth rate and meet the needs of its people.

Second, the pandemic has hindered China's economic development. Thanks to globalization, the global industrial and supply chains are deeply integrated, and a problem in even one of the links of the chains could trigger the butterfly effect. Take manufacturing for example. Chinese enterprises form a special link in the global industrial chain, which has been disrupted by the pandemic. And if the global pandemic situation doesn't improve in the near future, the chain risks fracture. As such, China has to keep the industrial and supply chains running by creating demands at home for the products originally meant for exports.

China has huge room to increase domestic demand. And given its vast land mass, abundant resources and capability to build a relatively sound industrial chain, China can boost its economy by greatly relying on growing domestic demand.

China has the world's largest and most sound industrial system, strong industrial production capacity, more than 100 million market players and over 170 million talents with higher education diplomas and/or special skills. More important, it has 1.4 billion consumers including more than 400 million middle-income residents. In addition, its new type of industrialization, urbanization, agricultural modernization and informatization can support a domestic demand-oriented development model.

DEEPENED REFORM HERALDS EXTENDED UPTREND

Bulls will continue to run in the A-share market but at a slower pace from now on as focus shifts to China's deepened reform of the capital market where direct financing will play a bigger role−that is the consensus view emerging among experts following better-than-expected second-quarter GDP growth.

The nuanced view is based on the benchmark Shanghai Composite Index's spike of nearly 15 percent in seven trading days since June 30.

Total trading volume recorded on the Shanghai and Shenzhen stock exchanges exceeded 1 trillion yuan ($143 billion) on July 9 and stayed in the stratosphere for six consecutive trading days, a feat not seen in the last five years.

There was more upbeat news. Since July 2, net inflows of foreign capital into the A-share market exceeded 10 billion yuan for four trading days in a row. Automobile, electronic equipment, cyclical stocks such as non-ferrous metals, and a section of the pharmaceutical companies attracted most of the foreign capital.

Over the first six months of the year, the net inflow of foreign capital via the stock connect program between Shanghai, Shenzhen and Hong Kong approached 120 billion yuan, a figure second only to the 160 billion yuan recorded in the first half of 2018.

Analysts from Shanghai-based financial service provider Noah Holdings Ltd wrote in a report that the inflow of overseas capital has been the major driver of the bounce in the A-share market, especially the undervalued sectors. Foreign investors' continued interest in the A-share market has generated a multiplier effect by attracting other capital into the market, said the Noah analysts.

Small wonder, foreign institutions continue to hold a positive outlook.

The A-share market is charging ahead on improving macroeconomic indicators that have boosted market confidence. China's second-quarter GDP grew 3.2 percent year-on-year, beating market consensus expectation of 2.4-percent growth−and a sharp contrast to the 6.8-percent contraction in the first quarter.

US CONSULATE IN CHENGDU CLOSES MONDAY MORNING

At 10 am July 27, as required by the Chinese side, the US Consulate General in Chengdu was closed.

China's competent authorities then entered through the front entrance and took over the premises.

CHINA'S CATERING INDUSTRY NEARLY BACK TO PRE-COVID-19 LEVEL

China's catering industry has recovered to 70-80 percent of pre-COVID-19 level in the first half of this year, Sina Finance reported on Monday.

The revenue of the industry reached 1.46 trillion yuan ($210 billion) with decrease narrowing and gradual recovering trend in the first six months, according to a report on resumption of work in the catering sector.

Although recovering gradually, China's catering industry still faces challenges including policy constraints, rent affects, high commissions and shortage of funds, said the report released by China Cuisine Association.

The association proposed to expand the coverage of the reduction and exemption policy, implement superimposed value-added tax reduction and exemption policy, and provide special credit support to catering companies.

Meanwhile, it is also recommended to provide a certain percentage of financial subsidies to the tenants, and directly reduce the rent burden of catering companies through direct rent subsidies.

In addition, it is suggested to reduce the commission rate of the delivery platform and separate the delivery fee from the commission fee and encourage companies to adopt flexible employment methods.

Furthermore, the development of private companies in catering industry should be vigorously encouraged and measures to boost consumption confidence and support catering industry development should be introduced.

Getting over the challenges of the pandemic, China's catering industry will be more organized and its structure will be more reasonable, said Jiang Junxian, president of the China Culinary Association.

The whole industry is more deeply aware the importance of close combination with the capital market, learn to use the power of capital to strengthen their own, improve the ability to resist risks, Jiang said.

CHINA'S REGISTERED VOLUNTEERS NEAR 170 MILLION

Volunteering service in China made a qualitative leap last year, according to a blue paper on the country's charity development released on Sunday.

The number of registered volunteers in China reached 169 million in 2019, committed to more than 2.26 billion hours of service in total, up 13.9 percent and 3.2 percent, respectively from the previous year.

The value of their volunteering service in 2019 stood at 90.36 billion yuan (about $12.92 billion), growing 9.7 percent from 2018 according to the blue paper, which was compiled by institutions including the Center of Social Policy Research at the Chinese Academy of Social Sciences and the Social Sciences Academic Press.

Volunteer organizations are facing a growing problem of insufficient funds, the paper alleged. The proportion of failing to recruit suitable volunteers for service has also risen. Another challenge volunteer organizations face is activities are not always supported by local governments or communities.

Social donations from across China in 2019 totaled about 133 billion yuan, a 4.72 percent increase from 127 billion yuan in 2018.

The blue paper noted in 2019 the concept of "tech for good" continued to spread. A growing number of large high-tech enterprises has incorporated the idea into their company values and development strategy. Also, more and more volunteer organizations and social innovation programs are starting to focus on how to effectively solve social problems with technology.

WUHAN BANS 'UNCIVILIZED BEHAVIORS' ON SUBWAY

Subway passengers in Wuhan will be fined up to 200 yuan ($28.5) if they are found eating or lying down in the carriages or promoting sales during their commute, according to ChuTian Metropolis Daily.

The newly revised regulation submitted by the city's legislative body was approved at the 17th session of the Standing Committee of the 13th Hubei Provincial People's Congress on Friday, which aims to intensify the management of "uncivilized behavior" from its subway.

The new regulation has many "uncivilized behaviors" that reflected were backed strongly by the public. The bad behaviors will be deemed as violations of laws and serious cases will be dealt with by the local public security departments.

According to the regulation, subway passengers will be banned from eating, smoking, littering, spitting and defecating, playing music loudly, drawing graffiti or posting or hanging items on subway cars or at subway stations.

Commuters are not allowed to park vehicles, pile up sundries, set up stalls at the passages, entrances of stations, or within five meters of entrances without permission. It also forbids, promoting sales, or using folding bicycles, auto-balancing bikes or scooters inside subway cars or in the subway stations.

For those who indulge in the above violations and refuse to stop their actions, they will be fined from 50 to 200 yuan.

Carrying pets, live poultry and other animals are also not allowed, although exceptions can be made for disabled passengers assisted by guide dog; The prohibited carryings also include the sharp-looking items that can easily damage others, items with strong odor or are liable to deface subway facilities, and items with volume, length, and weight exceeding the specific requirements. Those who board the subway cars but are found violating the above will be asked to get off and might be fined a maximum of 100 yuan.

Besides, using fake tickets or misusing or damaging facilities that could endanger to passengers and subway operation will also be punished.

AG600 SEAPLANE'S TEST FLIGHT MARKS MILESTONE

China's AG600 seaplane conducted its first sea-based test flight on Sunday morning, marking a new milestone in the program.

The AG600 prototype used for the test flight, operated by four crew members, took off at 9:28 am from Shanzihe Airport in Rizhao, Shandong province, and landed at 10:14 am on a designated area of the Yellow Sea off the neighboring city of Qingdao after a 46-minute flight.

The amphibious aircraft sailed on the waters and then took off at 10:18 am to fly back to Shanzihe Airport. It completed a number of test assignments during the operation, according to Aviation Industry Corp of China, the State-owned conglomerate that designed and built the seaplane.

The AG600 is China's second amphibious aircraft, after the SH-5, which was developed in the 1970s for military purposes and has been retired for a long time. With a length of 37 meters and a wingspan of 38.8 meters, the AG600 is roughly the size of a Boeing 737.

Powered by four domestically designed WJ-6 turboprop engines, it has a maximum takeoff weight of 53.5 metric tons. These specifications make it the world's biggest amphibious aircraft, surpassing Japan's ShinMaywa US-2 and Russia's Beriev Be-200.

Once in service, it will put an end to the absence of a large rescue aircraft in China and will be very useful in the national emergency rescue and disaster relief systems, said Chen Yuanxian, deputy general manager of AVIC.

The amphibious plane is one of three large-size aircraft to emerge from the nation's efforts to become a top-tier player in the global aviation sector, joining the Y-20 strategic transport plane−delivery of which began in July 2016 to the Chinese Air Force−and the C919 narrow-body jetliner, which is being flight-tested.

Development of the AG600 was approved by the central government in June 2009 and began in September that year. Tens of thousands of researchers and engineers from more than 160 domestic institutes, enterprises and universities took part in the program. Construction of the first prototype began in March 2014 and was completed in July 2016.

The seaplane made its maiden flight in December 2017 in Zhuhai, Guangdong province, taking off and landing at a local airport. Ten months later, it carried out its first takeoff and landing on water at Zhanghe Reservoir in Jingmen, Hubei province.

President Xi Jinping, who is also general secretary of the Communist Party of China Central Committee and chairman of the Central Military Commission, said after the October 2018 water-based test that it was a major achievement in the innovation efforts of the country's aviation industry. He said the seaplane will help improve the emergency rescue and disaster response systems and encouraged those involved in the AG600 program to continue striving for its success.

The AG600 will mainly be tasked with aerial firefighting and maritime search and rescue. It also can be refitted to conduct marine environmental inspections and marine resource surveys, as well as personnel and supply transportation, according to AVIC.

The aircraft is designed for land and water takeoffs and landings and has an operational range of more than 4,000 kilometers. It can rescue up to 50 people during a maritime search and rescue mission.

SITUATION TURNING POSITIVE FOR REALTY RECOVERY

A further recovery of the real estate market is on the cards.

The overall real estate industry is accelerating its diversification at the moment, and most of the changes are positive.

First of all, the market structure is becoming more reasonable. The property market has confronted a series of challenges in the past few years, including trade tensions between China and the United States, and the impact of COVID-19, which phased out a few small-sized property developers with ordinary financial management capability.

The remaining industry players are larger in scale and stronger in risk control, and they can help increase the entire market's ability in dealing with risks.

Second, the variation of the market could effectively lower costs, as well as help control home prices from rising.

Third, the market adjustment will facilitate the execution of property measurements and ensure the healthy development of the real estate market.

The consolidation of the real estate sector will also reinforce the effect of macro control policies, thus putting the property industry in a better position in confronting future risks and uncertainties.

Talking of market risks, under the central government's principle of "housing is for living in, not for speculation", the real estate market has been quite stable in general over the past few years.

Considering the complex and ever-changing external environment, and the fact that the broad economy is still at its early stage of recovery after a big-margin negative growth in the first quarter, we expect the macroeconomic policy will not tighten in the second half of the year.

The relatively tolerant macro policy environments leave the property market in a better position to maintain healthy and stable operations. It is more appropriate to manage the real estate market with market-oriented methodology, without stimulus or tightening.

Property industry is still key to China's economic development. The real estate sector's contribution to GDP is significant, and from a certain perspective, it could be regarded as the most important durable consumer product. With per-capita GDP steadily growing, Chinese people's demand for property is persistently on the rise.

China is currently in the process of rapidly expanding its urban population from 60 percent of the nation's total to 70 percent. The home prices appear overheated in certain regions, and hence the impact of the industry on the Chinese economy may get distorted, further complicating the big picture.

THOUGHT FOR THE DAY

A patriot must always be ready to defend his country against his government. - Edward Abbey