domestically rated “AAA”, the safest level. The sale to individual investors is mainly of project-link
ed special-purpose bonds, a type of local government bond vigorously promoted by the government in re
cent years. The cash flows generated from the underlying projects will be used as the primary repayment sources.
In China, there are two types of local government bonds: general bonds and special purpose bonds. According to the country’s 2019 budget repor
t, which was approved by the top legislature earlier this month, the budgeted deficit for local governments is 930 billion yuan, up 100 billi
on yuan compared with 2018, and this fund gap will be supplemented by general bonds.
In the meantime, 2.15 trillion yuan of special purpose bonds will be issued to support la
rge infrastructure projects, such as shantytown renovation projects and railways, said the ministry.
Letting individual buyers invest in local government bonds is a way to narrow the government’s financin
g gap, said Hu Yijian, a tax professor at Shanghai University of Finance and Economics. The gap is expected to expand, as policym
akers decided to cut about 2 trillion yuan in taxes and fees this year while at the same time increase spending on investment.
ith so many applications in different parts of industry and the economy, and we want agreements, project by project.”
Raffarin was appointed special envoy on China affairs by French President Emmanuel Mac
ron. He pointed out that it is not pragmatic to have an agreement about every industrial sector, because, as sovereig
n states, both countries need to protect the interests of their own businesses and industries.
“It’s easier to go project by project, and, after some experience, we can add a larger vision,” Raffarin said.
His comments came after Italy signed a BRI memorandum of understanding with China during
Xi’s visit to Rome last week to become the first G7 country to join the global infrastructure plan.
According to China’s Ministry of Commerce, from January to November 2018, China’s direct investment in France reached $330 mil
lion. China’s growing investment in Europe has prompted concerns in the West, which Raffarin thinks are misplaced.
ping via livestreaming services could completely and truly demonstrate the detailed infor
mation of overseas products to domestic consumers, and have gained wide popularity with the younger generation.
Zeng added that the consumers’ demands have become more p
ersonalized and diversified. “They have higher requirements for high-quality and cost-effe
ctive products, which brings out huge opportunities for cross-border e-commerce industry.”
It is noteworthy that the post-90s generation favor niche
and designer brands, and also are addicted to livestreaming videos, Zeng said.
Founded in 2010, Ymatou is a consumer-to-consumer or C2C marketplace engaged in cross-border e-commerce.
By the end of the second quarter in 2018, the site had about 50 million users and hired more than 60,000 overseas buyers in 83
countries including the United States, the United Kingdom, Japan, South Korea and Australia.