In the first half of this year, the State Council decided to reduce business tax rate for financial enterprises from 8% to 5%, with one percentage point decrease each year through a three-year period.

The Necessity of Establishing a Complete Public Finance and Taxation Supervision System

After the taxation system reform in 1994, China has basically established a taxation framework suitable to socialist market economy and a mechanism characterized by a steady growth of tax revenues.

Although disagreement on the definition of the scope of China's "shadow banking" exists, the Chinese government has paid close attention to its latent risks.

This report is based on the understanding of the strategic significance of China's urbanization and the knowledge of the relationships between urbanization and industrialization, urbanization and sustainable economic development, urbanization and agricultural industrialization, and urbanization and the construction of a new socialist countryside.

As a member country of the Basel Committee on Banking Supervision, the United States issued a draft plan of Basel II and Basel III in 2012.

China is advancing its urbanization at a fast speed. It is estimated that by 2020, the urbanization rate will reach over 60 percent from 52.6 percent in 2012, triggering off a huge financing demand.