National People's Congress Delegates Propose Doubling of Personal Income Tax Threshold

March 12, 2024

National People’s Congress Delegates Propose Doubling of Personal Income Tax Threshold

During this year’s National People’s Congress sessions, at least three delegates have put forward suggestions to raise the threshold for personal income tax. “The time has come to increase the personal income tax exemption from 5,000 yuan per month to 10,000 yuan,” stated economist and Tsinghua University School of Social Sciences Professor Li Daokui, who also expressed support for the proposal on his social media platform. Li analyzes that raising the threshold would directly boost the actual disposable income for a large segment of the population. The increase in consumption is anticipated to generate a multiplier effect, spurring economic growth. Additionally, the central government is expected to see increased fiscal revenue from the resulting circulation of funds.


Economist Predicts Intense Price War in New Energy Sector Amidst Overcapacity

During a recent interview, economist Fu Peng commented on the development of the new energy industry, noting its positive direction. However, he highlighted that the industry has become fiercely competitive, with a significant price war escalating from last year to this one. According to Fu, the new energy vehicle sector is quickly experiencing its first round of overcapacity, which is fundamentally what has sparked the price competition. This trend actually started last year, and Fu predicts that the current year could witness the most severe price war in the new energy vehicle market to date.

Despite Fu’s prediction. CATL, the world’s largest manufacturer for car battery, has once again experienced a sharp increase in stock, soaring over 10% with a trading volume surpassing 7 billion yuan. According to reports, Morgan Stanley has indicated that as the price war draws to a close, CATL is gearing up to enhance cost efficiency through a new generation of large-scale production lines and to expand its advantage in terms of return on net assets. Observing multiple turning points in the fundamentals of CATL, Morgan Stanley has upgraded the company’s rating to ‘Overweight’ and selected it as the top pick in the industry. The firm has also raised its target price for CATL by 14% to 210 yuan.


Beijing’s New and Second-hand Housing Market Research Reveals Contrasting Trends

Recent investigations into Beijing’s housing market have shown significant buyer activity in new homes, even on weekdays, with numerous transactions taking place in the Changping, Fengtai, and Haidian districts. Sales representatives from various properties have confidently stated, “Our houses sell well, and we don’t need to offer any special discounts.” In contrast, the second-hand housing market appears much quieter. Current research indicates that the number of second-hand homes listed in Beijing has reached a new historical high. According to data from Beike Zhaofang, listings for second-hand houses in Beijing have hit 170,900 units, which is an increase of approximately 10,000 units compared to the same period in February.

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