Sichuan Economy and Trade Trends

Monthly, January 2015

Published by CCPITSichuanCouncil

Contents

Macro Economy

The Provincial Capital Market Financing Setting a New High Record Last Year

Last year, the accumulative total of financing volume from capital market ofSichuanProvincereached RMB39.402 billion, reaching a new peak.

In particular, two companies including TROY Information Technology completed their IPO last year raising an amount of RMB 567 million. Apart from that, what was even more eye-opening was that Dongfang Electric and 19 other publically-traded companies raised altogether RMB 38.157 billion when they refinanced. Companies listed on the “New Three Plates” raised an amount of RMB 98 million and small and medium sized enterprises privately raised company bonds totaling RMB 580 million. Up until the end of 2014, 92 companies inSichuanProvincehave been listed as A shares, ranking the 7^th nationwide and the 1^st in central and westernChina. According to a member of the Sichuan Securities Regulatory Administration, at present, there are sufficient resources in reserve for listing and financing, IPO applications from two other companies have been audited and verified and are pending, 30 enterprise are now under auditing and verification and 48 enterprises are under mentoring status.

In addition to the continuous development of the exchange market, the construction of the “New Three Plates” and “Four Plates” markets have made significant breakthroughs. As of the end of 2014, 31 companies inSichuanprovince have been listed on the “New Three Plates,” ranking the 1^st in westernChina. As of now, 17 enterprises are being audited and 163 enterprises are listed as key reserve. Thanks to the successful inception of the Chengdu(Sichuan–Tibet) Stock Exchange Center, 190 companies have been listed up until the end of 2014.

It is noteworthy that along with the stock market heating up in the second half of last year, the aggregate market value of listed companies in our province has hit approximately RMB 844.984 billion, with a yearly growth of 55.6%. As of the end of last year, the number of securities investor accounts in the province reached 8 million, the accumulative total of securities transaction volume throughout the year achieved RMB 6.3 trillion, in which the average transaction volume of a single account exceeded RMB 780,000. (Sichuan Daily reported on January 30^th, Li Longjun)

Chengdu Economic Aggregate Exceeding Trillion-Level, Reaching a Higher Stage

In 2014, although under the pressure of economic downturn, the economic aggregate ofChengdumade a historical breakthrough.

Preliminary figures suggest that the gross regional domestic product ofChengdureached approximately RMB 1 trillion in 2014, increasing by 8.9% from last year and exceeding last year’s average national and provincial levels by 1.5% and 0.4% respectively. The local public fiscal revenue of the city reached about RMB 102 billion, 14.1% higher than the previous year. The amount of general pubic budget invested into residential areas reached RMB 89.5 billion and 174 practical livelihood projects have been completed already.

According to statistics, the value added of standard industry throughout 2014 increased by 12.2% over the previous year as calculated at comparable price, topping all 15 sub-provincial cities nationwide in rate of growth. As for the service industry, the core functions like commercial logistics, financial service and headquarters economy as well as other core features of the service industry are being strengthened progressively with e-commerce transaction volume exceeding RMB 500 billion. Besides the financial industry inChengduis developing rapidly with value added rising by 15.9% and growing 7.3% faster than the average level of the service industry. By taking advantage of the approval on and establishment of airport bonded logistics center (type B) and Qingbaijiang Chengdu railway temporary port opened to outside underway now, the level of foreign trade facilitation is evidently improving. The total export-import volume of Chengdu High-tech Comprehensive Bonded Zone now ranks the third nationwide and the first in western China.

In 2014, the completed fixed-asset investment throughout the year inChengduhit RMB 662.04 billion, increasing by 1.8% over the previous year. The aggregate investment in the now finished Chengdu Tianfu New Area reached RMB138.3 billion. In 2014, 420 key projects including Intel Junma wafer integration testing center were contracted and brought intoChengdu, from which the number of Fortune Global 500 enterprises reached262 inChengdualone.

As for consuming power, online buying power and automobile consumers are continuing to increase. According to statistics, the total retail sales of consumer goods in Chengdu in 2014 reached approximately RMB 420 billion, increasing by 12% over the previous year, among which the automobile related turnover achieved about RMB 100 billion, increasing by 15.6%. In addition to the continuous rise in income of urban and rural residents, the growth rate of rural resident's income is consistently higher than the growth rate of urban resident’s income. The urban per capita disposable income was RMB 32,665, which increased by 9.0% over the previous year, rural per capita net income achieved RMB 14,478, increasing by 11.5%. (Sichuan Daily reported on January 29^th, Chen Bihong)

The Proportion of Provincial Non-public Economy in GDP Exceeding 60% for the First Time

After breakthrough of the threshold of RMB1.5 trillion of the non-public economic value added of Sichuan in 2013, such value was increased to a new digit in 2014, making the amount exceeded RMB1.7 trillion for the first time (RMB1.719543 trillion), which was RMB142.616 billion more than the previous year. The non-public economy of the province now is developing in a stable and progressive pattern in a multi-pole structure.

The non-public economic value added ofSichuantakes a steady increase in ratio of GDP. In 2014, the non-public economic value added of the province increased by 9.5% than last year and is 1% faster than the growth rate of GDP. In particular, the growth rate of primary industry increased by 3.7% and the second and tertiary industry increased by 9.9% and 10.3% in respective. The proportion of non-public economic value added in GDP broke through the threshold of 60% for the first time, making it to 60.3%, which was 0.5% higher than the percentage of last year.

The industry has already become the “backbone” of non-public economy ofSichuanProvince. In 2014, the non-public economy industrial added value of the province reached RMB939.279 billion, taking up 54.6% of the non-public economic value added. As the non-public economies throughout the country now were competing for development, specifically speaking, the growth rates of the value added of 14 regions out from the 21 cities (prefectures) reached or exceeded 10% in 2014, the top three cities with the fastest growth rates were Ya’an (12.1%), Luzhou (11.6%) and Guangan (11.3%). Moreover, thanks to the non-public economy, 20 regions were benefited thereout with rate of contribution to local GDP exceeding 50%, among which 19 regions shared the rate of contribution of over 60%, the top three cities enjoying such rate were Nanchong (72.1%), Meishan (69.4%) and Neijiang (69.3%) in respective. (Sichuan Daily reported on January 25^th, Li Xinyi)

Domestic Capital Introduced Last Year Reached RMB879.8 Billion Provincially

Last year, capital valued RMB879.8 billion sourced from other provinces inChinawas fully funded and brought inSichuan, presenting a volume stabilized and quality guaranteed external investment development pattern.

Volume stabilized referred to the funds scale. There were 9143 undergoing projects invested by other provinces (including carry-over projects in previous years) inSichuan, and year-on-year growth of actual paid-in funds sourced from other provinces inChinahit 1.16%.