Shanghai: SSE Composite Index (.SSEC) plans to make it easier to do business in the city
Shanghai, which has improved the business environment substantially over the years, plans to make it further easier to do business in the city.
The city, with a 55 percent weighting in the accessment for China in the World Bank’s Ease of Doing Business 2020 report, has hugely contributed to China’s business development.
Of the 10 indicators assessed by the bank, eight of them ranked in the top 60 globally and five in the top 30, said Chen Yin, executive vice mayor of Shanghai. “This indicates that the business environment reform in Shanghai has made great progress in both depth and effectiveness.”
The biggest improvement was in dealing with construction permits. Shanghai advanced sharply by 88 places to the 33rd, with a full score of 15 on the building quality control index, after the city launched an integrated service system for the joint examination and approval of construction projects, as well as an offline examination and approval center to deal with the applications.
The city also jumped 36 places to stand at 28 globally for “protecting minority investors” indicator, up one place to 27 for “starting a business,” up two spots to 12 for “getting electricity,” and improved by a spot to fifth in “enforcing contracts.”
The five licenses previously required to start and operate a new business — the business license, the organization code certification, the tax registration, the statistics registration and the social welfare insurance registration — have been combined into one license.
It also climbed up nine places to 56 in trading across border, and up 10 places to rank 51 in resolving insolvency, according to the bank’s report. The city also went up nine places to rank 105 for paying taxes. The time needed for businesses in Shanghai to prepare, file and pay taxes has been reduced to just 138 hours per year on average, and companies only need to make seven payments.
For example, it took barely 10 months for the Tesla Shanghai Gigafactory to start trial production since it broke ground. The company also said the facility was about 65 percent cheaper to build than its Model 3 production plant in the United States.
The two indicators for registering property and for getting credit, however, fell one and seven places, respectively, to stand at 28 and 80 globally.
Some of the reforms in Shanghai were launched late and had not accumulated sufficient cases, while some other reforms undertaken had not been publicized and therefore were not known to the professional institutions involved in the bank’s assessment work, said Zhu Min, deputy director of the city’s development and reform commission while explaining the reasons why some aspects had drawn a negative mark on the bank’s assessment of the city.
“A good business environment is productivity,” Chen pointed out. “After two rounds of reform in the business environment, we realized that improving some ‘soft’ environments such as optimizing systems can be more effective in attracting investment and promoting employment, and our efforts to constantly improve the business environment have a positive effect on economic development.”
Faced with the complicated international situation and the downward pressure on the economy, the continuous optimization of the business environment has boosted the confidence of enterprises in investing in the city, Chen said.
In the first three quarters of this year, Shanghai’s economy maintained stable growth, with the city’s gross domestic product rising by 6 percent, showing an upward trend from quarter to quarter. Industrial investment grew by 16.3 percent in the first three quarters, extending last year’s 17.7 percent rise to post double-digit growth for 18 consecutive months, setting the stage for further economic growth in the future.
He also highlighted the progress made in the China (Shanghai) Pilot Free Trade Zone. Over the past six years, the Shanghai FTZ has explored and developed more than 300 replicable experiences in the areas of investment, trade, finance, regulation in the course and afterward, and the reforms on separating permits from business licenses, Zhu said.
“Shanghai will focus on expanding the benefits for enterprises, study and formulate the business environment improvement in its 3.0 plan, and continue to make greater efforts to enhance the business environment,” he said.
Overall, the bias in prices is: Sideways.
The projected upper bound is: 3,024.52.
The projected lower bound is: 2,891.76.
The projected closing price is: 2,958.14.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 29 white candles and 21 black candles for a net of 8 white candles.
An engulfing bullish line occurred (where a white candle’s real body completely contains the previous black candle’s real body). The engulfing bullish pattern is bullish during a downtrend (which appears to be the case with SSE COMPOSITE). It then signifies that the momentum may be shifting from the bears to the bulls.
If the engulfing bullish pattern occurs during an uptrend, it may be a last engulfing top which indicates a top. The test to see if this is the case is if the next candle closes below the top of the current (white) candle’s real body.
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 47.0020. This is not an overbought or oversold reading. The last signal was a sell 7 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 50.31. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 23 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -30. This is not a topping or bottoming area. The last signal was a sell 8 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 4 period(s) ago.
Rex Takasugi – TD Profile
SSE COMPOSITE closed up 14.011 at 2,954.933. Volume was 21% below average (neutral) and Bollinger Bands were 44% narrower than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 2,962.46 2,932.97 2,907.38
Volatility: 12 14 23
Volume: 14,235,665,408 17,166,579,712 23,062,323,200
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
SSE COMPOSITE is currently 1.6% above its 200-period moving average and is in an downward trend. Volatility is low as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of .SSEC at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on .SSEC and have had this outlook for the last 12 periods.
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