188bet online sports betting The "Government Work Report" was released on March 5 (hereinafter referred to as the "Report")；Before and after the two sessions，The Central Committee of the Communist Party of China issued the "Decision on Deepening the Reform of Party and State Institutions" (hereinafter referred to as the "Decision")、The General Office of the Central Committee of the Communist Party of China issued the "Guiding Opinions on Expanding the Focus of Budget Review and Supervision of the National People's Congress to Expenditure Budgets and Policies"、The Ministry of Finance released the "2017 Budget Implementation Status and 2018 Budget Draft"，China Finance Office、People's Bank of China、State-owned Assets Supervision and Administration Commission、The Ministry of Finance and other departments answer reporters’ questions。

Interpretation:

During the Two Sessions in 2018，Lots of information，Breaking policies are coming，A new round of reform and opening up is unfolding in an epic way。Easy to find，All these policies，All centered around one goal: promoting high-quality development。 

The economic growth target has been diluted，M2 will not be mentioned again，Prudent monetary policy paired with active fiscal policy，The top-level design of the “1153” economic policy is becoming increasingly clear，Prevent and resolve major risks、Targeted Poverty Alleviation、Three major battles in pollution prevention and control have begun，Building a manufacturing power and an innovative country，Property tax is being legislated，Personal income tax will increase the threshold and increase deductions，Focusing on strengthening the party’s overall leadership、Promote high-quality development, adjust and optimize institutional functions，The financial regulatory system focuses on strengthening macro-prudential and regulatory coordination，“Unicorns” are also returning to A-shares！

This year is the 40th anniversary of reform and opening up，The best commemoration is to promote a new round of reform and opening up with greater determination and intensity，Showing the new era、New weather，Start a new cycle。What is more important than summarizing “what China has done right”，“What else does China need to do？”

1. Downplay the economic growth target and emphasize high-quality development

The GDP target for 2018 is set at “6.About 5%”，Removed “Strive for better results in actual work”，Downplay economic growth，Strengthen high-quality development、Employment and people’s livelihood。

The "Government Work Report" states: "The main expected development goal this year is: GDP growth 6.About 5%；Consumer prices increased by about 3%；More than 11 million new urban jobs，Urban survey unemployment rate 5.Within 5%，Urban registered unemployment rate 4.Within 5%；The growth of residents’ income and economic growth are basically synchronized；Import and export are stable and improving，Basically balanced international balance of payments；Energy consumption per unit of GDP dropped by more than 3%，Emissions of major pollutants continue to decline；Substantial progress has been made in supply-side structural reform，The macro leverage ratio remains basically stable，Organized and effective prevention and control of various risks。”

2、The top-level design of China’s economic policy in the new era is becoming increasingly clear: 1153 

"A general requirement"，That is, China’s economy has shifted from a stage of rapid growth to a stage of high-quality development。

"A main line"，It is necessary to promote supply-side structural reform as the main line。

"Five major tasks"，“Three eliminations, one reduction 188bet online sports betting and one supplementation”，Fix for weaknesses、Destock、Fix for weaknesses、Reducing costs、Fix for weaknesses。

“Three major battles”，Prevent and resolve major risks、Targeted Poverty Alleviation、Pollution Prevention。 

3、The focus of supply-side structural reform shifts to deleveraging、Fix for weaknesses and reduce costs

The target increased "the macro leverage ratio remains basically stable，Organized and effective prevention and control of various risks”。

The degree of overcapacity reduction remains unchanged，The focus of deleveraging is on enterprises, especially state-owned enterprises，Cost reduction is reflected in tax reduction。Continue to eliminate invalid supply。Insist on using market-oriented and legal means，Strictly implement environmental protection、Quality、Safety and other regulations and standards，Resolving excess production capacity、Eliminate backward production capacity。Another 30 million tons of steel production capacity will be reduced this year，Exit coal production capacity 1.About 500 million tons，Eliminate and shut down coal power units below 300,000 kilowatts that do not meet standards。Intensify efforts in bankruptcy liquidation and reorganization of “zombie companies”。

Proposed by Yang Weimin of the Central Finance Office，The most important thing for deleveraging is that corporate leverage must be reduced，The most important thing is not to increase residents’ leverage。In Corporate Leverage，State-owned enterprises have high leverage ratio，Although the asset-liability ratio of industrial state-owned enterprises has generally declined since May 2016，But it was still higher than that of private enterprises as of the end of 20178.8 percentage points。

Cost reduction，It is expected to reduce personal income tax and corporate income tax by about 800 billion this year，Reduce non-tax burden by 300 billion，Continue to promote “delegation, regulation and service”，Reduce institutional costs。

Making up for weaknesses，Accelerate the manufacturing process，Building an innovative country。Key development: implement big data development actions，Strengthening the R&D and application of new generation artificial intelligence，In medical care、Elderly Care、Education、Culture、Promoting “Internet+” in sports and other fields。Develop intelligent industry，Expand smart life。Promote integrated circuits、Fifth generation mobile communications、Aircraft engine、New energy vehicles、Development of new materials and other industries，Implementing special equipment projects with major shortcomings，Develop industrial Internet platform，Creating a “Made in China 2025” demonstration area。

4、Active fiscal policy shifts from spending to tax and fee reductions，Reducing the burden on individuals and businesses，Real estate tax legislation is the general trend，Pay close attention to local hidden debt risks

Implementing a proactive fiscal policy in 2018，But the fiscal deficit rate is reduced to 2.6%，This is the first downward adjustment since 2012，The absolute deficit is the same as the previous year at 2.38 trillion；Special bonds increased by 550 billion to 1.35 trillion，Expanding scale for three consecutive years。Considering the general budget deficit and special debt，The actual deficit rate in 2018 was 4.4%，Slightly lower than 4 in 2017.6%，There will be pressure on infrastructure investment，But non-standard、Shadow banking cleanup has greater impact。

Figure 1: The public finance deficit rate has been reduced for the first time since 2012,Source: Evergrande Research Institute，wind

Change in the direction of active fiscal policy: from spending to tax cuts，Focus on people’s livelihood and support the three major battles。

Raise the personal income tax threshold and increase deductions:Increase the “threshold” (fee deduction standard)；Add itemized deduction items，i.e. children’s education、Cerious illness medical treatment；Change in collection model: from classified collection to a combination of comprehensive and classified，Salaries、Remuneration for labor、Remuneration、Income from labor properties such as royalties，Consolidated as comprehensive income，Then determine the basic deduction expenses。

The introduction of real estate tax is a general trend，Follow "legislation first、Fully authorized、Progress step by step" principle。

5、Prudent monetary policy remains neutral，Downplay M2 and social integration growth targets，Tightening of financial deleveraging

With the advancement of financial deleveraging，M2 growth rate hits new low，Decreased meaning of indication，The "Government Work Report" no longer mentions growth targets。The decline in M2 growth reflects the initial results of deleveraging and strengthening financial supervision，Reduced circulation and nesting of funds within the financial sector。Slower money growth can still support the economy to achieve stable and rapid growth，Low growth will be the norm。

Social integration will present four major trends in 2018，First, strictly control residents’ leverage，The second is to support credit extension to real enterprises，The third is off-balance sheet return to balance sheet，Fourth is the increase in the proportion of direct financing。The rise in credit and the decline in social financing indicate that supervision is tightening and the off-balance sheet will be returned to the balance sheet，Shadow banking system financing will shrink significantly: trust loans、Entrusted loan、Asset Management Plan、Fund subsidiary products and other channel businesses are facing a sharp decline，Off-balance sheet financial management、Shadow banking funding sources such as interbank deposit certificates are facing shrinkage，The return of off-balance sheet loans to the balance sheet brings about an increase in on-balance sheet loans and pressure on banks to replenish capital。Real estate regulation，Resident mortgage loans decline。

Figure 2: The asset-liability ratio of state-owned enterprises has declined，But still higher than private enterprises,Source: Evergrande Research Institute，wind

The "Government Work Report" emphasizes financial support for the real economy。"Unblocking the transmission channels of monetary policy，Make good use of differentiated reserves、Differentiated credit and other policies，Guide more funds to invest in small and micro enterprises、“Three Rural Areas” and Poverty-stricken Areas，Better serve the real economy。”

6、Take precautions to resolve major risks、Targeted Poverty Alleviation、Three tough battles in pollution prevention

Fight the battle to prevent and resolve major risks，Mainly financial risk、Financial risks and real estate risks, etc.。Strengthening internal risk control of financial institutions。Strengthen the overall coordination of financial supervision，Strengthen shadow banking、Internet Finance、Supervision of financial holding companies, etc.，Further improve financial supervision。Prevent and resolve local government debt risks。All kinds of illegal and illegal borrowing are strictly prohibited、Guarantee and other behaviors。The provincial government is solely responsible for the debts of its jurisdiction，Local governments below the provincial level are responsible for their respective responsibilities，Actively and steadily dispose of existing debts。Sound and standardized local government debt financing mechanism。The General Office of the Central Committee of the Communist Party of China issued a document specifically emphasizing the need to resolutely curb the increase in hidden debt，Never allow new types of hidden debts。

Yang Weimin said，Focus on rectifying local hidden debts、Control the excessive growth of household debt by regulating the real estate bubble、Make controlling the debt of state-owned enterprises the top priority in controlling total debt in the future。

Guo Shuqing said，Winning the battle to prevent and resolve major risks，Banks are a main battlefield，The key point is to stabilize the leverage ratio，And get as low as possible，The corporate sector’s leverage ratio needs to be reduced，The leverage ratio of the household sector also needs to be reduced。Continue to focus on shadow banking rectification this year，Increase trust、Strength to rectify weak links such as Internet finance。

Behind financial risks are fiscal risks，It is a state-owned enterprise、Problems caused by local government’s soft budget constraints，Incentives but no constraints。In accordance with financial supervision，Financial institutions cannot provide funds to state-owned enterprises with overcapacity、Local financing platforms and substandard enterprises provide financing，The shadow system can provide financing for unconstrained financing behavior。current，Local debt risks and financial risks are mainly mechanism issues rather than scale issues。The key to resolving financial risks is to establish a mechanism。Establish constraints on ineffective investments，Break the rigid redemption and implicit guarantee。

Intensify targeted poverty alleviation efforts。This year, the number of rural poor will be reduced by more than 10 million，Completed the relocation of 2.8 million people for poverty alleviation。

Promote pollution prevention and control to achieve greater results.Consolidate the results of the Blue Sky Defense War，Sulfur dioxide this year、Nitrogen oxide emissions should be reduced by 3%，Fine particulate matter (PM2 in key areas.5) The concentration continues to decrease。

7、Deepening the reform of party and state institutions，Strengthening the Party’s overall leadership

This reform of party and state institutions has two main features: first, strengthening the party’s overall leadership，Strengthen the party’s centralized and unified leadership over major tasks involving the overall cause of the party and the country；The second is to adjust and optimize institutional functions around promoting high-quality development，Enhance natural resources、Ecological environment、Science and Technology、Cultural Tourism、Financial macro-prudential、Market supervision、News and Radio、Society and people’s livelihood、Disciplinary supervision and other departments or functions，Weaken micro-management matters and specific approval matters。

8、Big changes in the financial regulatory system，Focus on strengthening macro-prudential and regulatory coordination

President Zhou Xiaochuan’s recent remarks，China’s financial regulatory agency reform refers to the British “Twin Peaks” regulatory mechanism。The reformed British "twin peaks" regulatory model sets regulatory agencies and functions according to goals，Respectively by the Bank of England’s Monetary Policy Committee (MPC)、Financial Policy Committee (FPC)、The Prudential Regulation Committee (PRC) and the Financial Conduct Authority (FCA), which are independent of the Bank of England, are responsible for price stability、Financial stability (macro-prudential)、Individual financial institutions are sound (micro-prudential)、Different goals such as consumer rights protection，Preventing regulatory gaps，Make up for regulatory shortcomings，Eliminate regulatory arbitrage。

China will establish the China Banking and Insurance Regulatory Commission.Establishment of China Banking and Insurance Regulatory Commission，As an institution directly under the State Council，No longer retain the China Insurance Regulatory Commission and the Banking Regulatory Commission。According to the description of the State Council’s institutional reform plan，The main responsibilities of the newly established China Banking and Insurance Regulatory Commission are，Unified supervision and management of the banking and insurance industries in accordance with laws and regulations，Maintain the legality of the banking and insurance industries、Steady progress，Prevent and resolve financial risks、Protect the legitimate rights and interests of financial consumers，Maintain financial stability。The China Banking Regulatory Commission and the China Insurance Regulatory Commission will draft the banking industry、Draft laws and regulations on the importance of the insurance industry and responsibilities of the basic system of prudential supervision，All transferred to the People's Bank of China。

China’s new regulatory reform mainly addresses two major challenges and trends:Separate supervision is not suitable for mixed operation，Monetary policy focuses on inflation and ignores asset prices。Reform direction: Monetary policy ensures currency value stability，Strengthening macro-prudence to ensure financial stability，Strengthening micro-prudence to ensure the stability of individual financial institutions，Protect consumer rights and interests。The central bank is responsible for the first two，The Financial Stability Board is responsible for the second and supervisory coordination，The merged regulatory department is responsible for the latter two。Fill the gaps in supervision and let the cross-finance industry that should not be mixed return to its original industry，The merger of separate industry supervision systems adapts to the normal trend of mixed operations。

9、Gives the green light for “unicorns” to return to A-shares，Support new economy companies to go public

The China Securities Regulatory Commission recently issued a report on biotechnology、Cloud computing、Artificial Intelligence、“Unicorn” companies in 4 high-end manufacturing industries，Open "Fast Track"，Those who meet the relevant regulations can be subject to immediate review，No need to queue。

Liu Shiyu said that he would create good tools and corresponding institutional arrangements to support new economic enterprises，Choose the appropriate way to return to A shares；Capital market development opportunities are stronger than ever，Supervision is not enough，Delisting rules will be gradually strengthened。

10. Promote the reform of state-owned assets and state-owned enterprises and reduce the leverage of state-owned enterprises

The "Government Work Report" points out: it is necessary to deepen state-owned capital investment、Operation company and other reform pilots，Continue to promote the optimization and reorganization of state-owned enterprises and the joint-stock reform of central enterprises，Promote state-owned capital to become stronger, better and bigger。Steadyly promote mixed ownership reform。”

Xiao Yaqing, Director of the State-owned Assets Supervision and Administration Commission, proposed: In terms of supervision，We must further transform from managing enterprises to managing capital，Strengthen classified supervision、Classification Assessment；Promote equity diversification and mixed ownership reform at the group level；Promote the strategic reorganization of central enterprises，Including strategic reorganization and professional reorganization at the group level；Vigorously promote corporate information disclosure，Under Construction Sunshine State-owned Enterprises、Sunshine state-owned enterprises further increase their efforts，Accept supervision from the whole society and the media。For central enterprises，Increase risk control，Decrease leverage、Reduce debt、Risk prevention is still a very important task this year and in the future。

11、Establish and improve the long-term mechanism for real estate regulation，Development of both purchase and rental，Start a new three-year housing reform plan

The "Government Work Report" pointed out: "Insist that houses are for living in"、Not a positioning for speculation，Implement local subject responsibilities，Continue to implement differentiated regulation，Establish and improve a long-term mechanism，Promote the stable and healthy development of the real estate market。Support residents’ demand for home purchase，Cultivation of housing rental market，Develop shared property housing。Accelerate the establishment of multi-agent supply、Multi-channel guarantee、Housing system that promotes both renting and purchasing。Start a new three-year housing reform plan，5.8 million units started in 2018。Increase the security of public rental housing，Everything must be guaranteed to low-income families with housing difficulties，will be eligible for new employment without housing、Migrant workers are included in the coverage。”

12、Real estate tax legislation first、Fully authorized、Progress step by step

It is a general trend to levy property tax。The "Government Work Report" proposes to "steadily advance real estate tax legislation"，National People's Congress、The Ministry of Finance stated that “relevant parties are working hard to draft and improve the draft law on real estate tax”。Because real estate tax involves thousands of households，Be cautious about taxing ordinary people，Relevant departments should introduce practical and reasonable measures、Scientific rules。

Then，When will real estate tax be introduced？How to collect？How big of an impact？

1) What do authorities say?

Real Estate Tax Legislation Process Accelerated，Follow "legislation first、Fully authorized、Progress step by step" principle，As part of a sound local tax system，The plan is currently under design，Need multiple arguments and solicit opinions。

Zhang Yesui, Spokesperson of the 13th National People’s Congress said，Accelerating real estate tax legislation is an important task proposed by the Party Central Committee，Drafted by the Budget Working Committee of the Standing Committee of the National People's Congress and the Ministry of Finance，We are currently accelerating the drafting and improvement of the legal draft、Arguments on important issues、Internal solicitation of opinions and other aspects of work，Strive to complete the preparations for submission to the Standing Committee for initial deliberation as soon as possible。

Proposed by Premier Li Keqiang in the Government Work Report，This year our country will deepen the reform of the fiscal and taxation system，Improving the local tax system，Steady advancement of real estate tax legislation。

Shi Yaobin, Vice Minister of Finance, pointed out when answering questions from domestic and foreign reporters during the two sessions，According to the central government’s decision-making and deployment，Currently the Budget Working Committee of the Standing Committee of the National People’s Congress、The Ministry of Finance and other relevant parties are working hard to draft and improve the draft law on real estate tax。The overall idea of ​​real estate tax is “legislation first、Fully authorized、Progress step by step”。Design first、Perfect，Carry out further arguments and listen to opinions。

2) Why is real estate tax levied?

has three functions: one is to adjust the income gap、Promote social equity。The second is to raise local fiscal revenue，Gradually replace the land transfer fee。The third is to increase the tax on the retention link，Reduce taxes on construction transactions。

The main function of real estate tax is to adjust income distribution，Especially the accumulation of personal wealth，Play a role in promoting social equity。At the same time，Raise fiscal revenue，Used to meet the government’s needs for providing public services。According to the four international general principles of real estate tax，Reasonably design the real estate tax system based on China’s national conditions。Currently，There are 10 main types of taxes in China’s real estate tax system，Keep three links、Transaction、Keep three links。Among them，7 types of taxes are involved in the development and construction process，Trading link，Involving 7 tax types，At the stage of retention，There are 2 tax types。Merge and integrate related taxes、Reasonably reduce taxes and fees in real estate construction transactions，It can also play a role in raising fiscal revenue，It can also adjust income distribution、The positive effect of promoting social equity。

3) What are the basic characteristics of future real estate taxes?

First, taxation is based on the assessed value.For all industrial, commercial and personal housing，A complete evaluation system needs to be established in the future，Including credible real estate appraisal agencies、Real estate registration system。

The second is tax deduction to ensure basic housing needs.The “basic housing standards” for residents need to be clearly defined in the future，Determine the conditions for property tax exemption。There will also be tax incentives or deduction standards，For some families in difficulty、Low-income families、Certain tax exemptions for groups with special difficulties。

Third, real estate tax is levied independently by local governments.Future real estate tax will be local tax，Income goes to local government。Local governments use these revenues to meet education needs、Police and other public expenditures，Replace the current expenditures from government funds。

Fourth, it has a complete tax collection and management model.For a completely new tax category，In order to successfully promote it nationwide and achieve the expected results。On the one hand，Taxpayers need to be “trained” through various channels，Let taxpayers fully understand the relevant regulations；On the other hand，We also need to actively adopt taxpayers’ suggestions and guidance，Enable both parties to reduce information asymmetry as much as possible。Establishing a real estate tax supervision agency after the introduction of the levy，Establish a tax defense system。To ensure the fairness and objectivity of real estate tax，The collection and use of real estate taxes require supervision，Taxpayers have channels to raise objections and appeals。A complete model can ensure fair taxation。

4) When will the expedition start?

Real estate tax reform，We must insist on legislation first，Complete legislation before raising tax collection，Due to the huge project，It is expected that the legislative session in 2020 will bear initial results。

*本Text source: WeChat public platform "Zeping Macro" (ID:zepinghongguan）, Author: Ren Zeping, original title: "All for high-quality development: three tough battles，Organizational reform—the policy signal sent by the two sessions》.