economy

Island Holidays Remain First Choice during Spring Festival Overseas Travel

The Chinese New Year is just around the corner. Data released by a number of travel agencies show that the Spring Festival outbound travel market is booming. The number of tickets booked have increased by 32 percent year on year， and the prices have also increased by 10 percent. In addition， data from travel agency platforms show that economy-class air tickets for some popular travel destinations during the Spring Festival period have been sold out， and up to 65 percent fares can be saved by returning home via transit.

Booking data show that Thailand， Japan， Hong Kong， Singapore， Vietnam， Indonesia， Mauritius， U.S.， Australia， and France are the top 10 destinations for Chinese New Year outbound tourists. Island holiday is still the first choice for overseas travel during the Spring Festival with island travelers accounting for 60 percent of the total number of outbound tourists. Islands such as Phuket， Danang， and Bali are among the most popular destinations. Meanwhile， hot springs and ski slopes in Japan are also favored.

Zou Qingling， general manager of Lvmamas outbound travel department， said that due to the long duration of visa application process， booking trips to Europe and U.S. during the Spring Festival began as early as last November.

New Individual Income Tax Deductions Relieve Taxpayers Burdens

Chinas top legislature adopted an amendment to the countrys Individual Income Tax Law， which officially went into effect on January 1， 2019. The amendment raises the monthly tax exemption threshold and adds six special tax deductions， the end result of which has greatly relieved the burden of low- and middle-income individuals.

The six special tax deductions for individuals with certain expenditures are the highlights of the revision. According to the revised law， taxpayers with expenditures for childrens education， continuing education， health treatment for serious diseases， housing loan interests， rent， and elderly care will be given different rebates each month before paying their individual taxes. As a result， this will increase their disposable income after tax. Besides， for married couples， the deductions could be shared equally or given to one spouse.

Among the six deductions， the rebate of money granted to taxpayers receiving medical treatment for serious diseases will vary between individuals depending on their specific spending， while the other five deductions are all fixed. Simply put， a fixed rebate of RMB 1，000 （about US $145） will be given each month for educational expenses per child regardless how much the expenses may be.

Chinas Box Office Revenue Hits RMB 60 Billion in 2018

According to official data， Chinas film industry maintained a steady growth in 2018. The number of films produced throughout the year was 902， which contributed to an overall box office of RMB 60.9 billion for the first time， a yearon-year increase of 9.06 percent. Domestic films reached a gross of RMB 37.897 billion and accounted for 62.15 percent of the market. The total number of moviegoers in urban areas reached 1.716 billion. A total of 9，303 new screens were added， bringing the total number of screens in China to 60，079， ranking it first in the world.

In 2018， the quality of domestic films continued to improve and was further recognized by the audience and the market. The four films with the highest box office revenue were all produced in China. Apart from the box office， the films also won a good reputation among the audience. Operation Red Sea set a new benchmark for military blockbusters， Chinatown Detective 2 went further on the new path of suspense plus comedy， and Dying to Survive made a breakthrough in the exploration of realistic themes.

A survey conducted by the China Film Art Research Center and Entgroup shows that Chinese moviegoers in general were satisfied with the quality of domestic films in 2018， especially with films released during the 2018 Spring Festival.

China Cuts BanksReserve Requirement Ratios to Bolster the Private Sector

Chinas central bank， the Peoples Bank of China（PBOC）， slashed banksreserve requirement ratios（RRRs） by 100 basis points（bps） recently， in a bid to lower financing costs for companies and further support the private sector， in particular small and micro firms.

The reduction， which is expected to release around RMB 1.5 trillion in liquidity into the financial system， was made in two equal stages， going into effect January 15 and 25. This will also effectively increase the sources of loans for the real economy， including small and micro businesses and private enterprises.

This move， which comes ahead of Chinas Spring Festival holiday when cash conditions often get tight， will allow financial institutions to further strengthen support to the private sector and small and micro firms， the PBOC said.

The central bank said Chinas economic growth is still within a reasonable range， and it will continue to implement a prudent monetary policy， without engaging in massive stimulus.