China Third Plenum: Full document released…full of positive surprises!

Posted: November 18, 2013 in Uncategorized

The Chinese are really masters of disinformation….the pre- Plenum were plenty of promises. The document press release just after the Plenum it was a delusion (apart taht in my last comment I warned it could have been a way to deal with the enemies) and now the full document is full or surprises.

In a very short way

– Loosening of the One Child Policy

– Extra rights for farmers (practically now, if they move, they will be able to sell their property at market value (before they had to sell it back to the local government, at very low prices). It will take time as the local governments will lose a lot of revenues

-Clampdown on Local Debt (biggest issue)

– Easier competition against 113 State Owned Enterprises (30% of the profit will have to be returned to the State and used for social security by 2020 (now it is about 5 to 20%) will be easier and resources better allocated.

-Private Capital will be allowed to participate to Government project

-China will allow to set up private banks

-Foreign investor will be allowed to invest in green energy projects

-Public Officials will be allowed to live in official home (lame try against corruption…but signal a direction)

-Water, electricity, transport, natural gas and telco prices determined by market forces

-Reform to the household registration system (allows the citizen to move to another city and work there and still use their access to the welfare system

– continuous push towards liberalization of interest rates and currency

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