Local government debt is rising

chiny24.com 1 year ago

Local government debt is rising

Since the implementation of the revised fiscal law in 2015, the issuance of government bonds has become the main means of debt borrowing by local and provincial governments. In fresh years this debt has grown rapidly. At the end of 2023, the debt balance of local governments in China exceeded 40.74 trillion RMB (about PLN 22.84 trillion). That's almost 10% more than in 2022.

In the amount mentioned, the full debt of local governments amounted to 15,868 trillion RMB (approx. PLN 8,90 trillion), and the debt of peculiar bonds (mainly for infrastructure purposes) amounted to PLN 24,87 trillion RMB (approx. PLN 13,95 trillion).

Annual interest on bonds alone exceeded the value of 1.2 trillion RMB (about PLN 673.45 billion).

The central government due to its bonds is indebted to the amount of 40.57 trillion RMB (approx. PLN 22.76 trillion) and to the non-governmental bonds to RMB 166.2 billion (approx. PLN 93.22 billion).

Thus reported by the Ministry of Finance of the PRC (chin. 财政部).

Source:

sina.com.cn;
economy.caixin.com;

RES more than coal

According to a study published by the Council of Electricity of China (chin. 中国电力企业联合会) installed renewable energy sources in China in 2023 for the first time exceeded the power origin of coal.

According to the report, the energy transition in China, with the aim of rapidly expanding infrastructure to make and efficiently exploit "low-emission green energy", continues and continues.

The installed capacity of power plants producing electricity from renewable energy sources represented 53.9% of the full at the end of the erstwhile year and 39.9% of coal power plants.

The power from wind and solar power plants connected to the grid in the past year has exceeded 1 billion kilowatts.

Last year there was besides an increase in electricity consumption, which is simply a circumstantial “barometer” of national economical development. Electricity consumption was 9.22 trillion kWh, an increase of 6.7% year-on-year. It is expected to grow steadily in 2024 to 9.8 trillion kWh, which again represents an increase of around 6% compared to 2023.

Last year the installed capacity per capita for the first time exceeded 2 kW/person, reaching 2.1 kW.

However, it should be noted that coal-based energy remains the main origin of power to the Chinese economy. The power obtained from coal power plants this year is expected to decrease to 37% of full power.

The study besides indicated the tasks facing energy in 2024. And these are:

First, ensuring safety of electricity supply to all corners of the country;
secondly, accelerate reforms and establish a unchangeable marketplace tariff system;
Third, accelerate the promotion of the construction of a fresh kind of electricity system.

Source: mp.weixin.qq.com

The Chinese play the lottery

From January to December 2023, the lottery lots were sold in China with a full value of RMB 579.70 billion (about PLN 324.85 billion), which means an increase of 36.5% y/y.

On average, last year each Chinese citizen purchased lottery tickets for 411 RMB (approx. 230 PLN). The majority of fates were acquired by residents of GuangDong, Zhejiang, JiangSu and ShanDong Provinces.

Source: https://baijiahao.baidu.com

GDP of Chinese provinces in 2023

GuangDong Province, ranked first in the country for 35 consecutive times in terms of the provincial value of GDP. In 2023 it reached a tallness of 13.57 trillion RMB (about PLN 7.61 trillion), at a growth rate of +4.8% year-on-year.

In terms of full GDP, another 10 seats behind the state of GuangDong occupy:

JiangSu,
ShanDong,
Zhejiang,
SiChuan,
HeNan,
Beijing,
HuBei,
FuJian,
Hunan and
Shanghai.

In terms of GDP growth, 18 provinces, provincial cities and peculiar administrative regions have achieved a higher GDP growth rate than the national average (+5.2% y/y). The highest growth rate was recorded in the Macao peculiar Administrative Region (+74.4% y/y thanks to the strong rebound after Covid the main local business, which are casinos and gambling games).

The another administrative units of the first 10 are:

Tibet (+9.5%)
HaiNan (+9.2%),
XinJiang (+6.8%),
NingXia (+6.6%),
GanSu (+6.4%),
Guilin (+6.3%),
ChongQing (+6.1%),
Zhejiang (+6.0%),
ShanDong (+6.0%),
HuBei (+6.0%),
SiChuan (+6.0%).

GDP grew most rapidly in the least developed and low-level regions.

According to the GDP growth targets adopted for 2024, at 34 provincial administrative units, 30 assumes GDP growth from +5.0% to +6.5% y/y. Tibet and HaiNan stand out again, which plan to increase GDP in 2024 by +8% y/y. It's worth remembering.

On the margins: Hong Kong GDP increased by 3.2% in 2023 and Taiwan by 1.4% in 14 years.

Source: