Information consumption to fuel China's economic growth (2)

Email|Print|Comments       twitter     facebook     Sina Microblog     reddit    

To upgrade telecommunications infrastructure, the government will release 4G mobile communications licenses later this year. By the end of 2013, the government will also push the integration of telecommunications, Internet and broadcasting networks into one complete system covering the entire nation.

Xiong Wei, chief research officer of an investment consulting company in Beijing, regarded information consumption as a new direction of China's economic transformation and update, calling for new technologies and services in the sector, the journal said.

The booming information industry in China benefited many sectors like online games, e-commerce, communication, broadband, fiber optic equipment, logistics network, movie and TV media in the first half of 2013.

Data from Hexin Flush Information Network, a popular Chinese financial service group, showed that total net margin of 65 information service and equipment companies that have released semi-annual reports stood at 5.95 billion yuan, up 22.78 percent year on year, of which 43 realized growth in business performance.

Moreover, the industry forecasted a favorable performance from January to September.

A unicircuit manufacturing company Tongfang Guoxin Electronics expected profit to range between 160 million yuan and 190 million yuan in the first three quarters, up 47 percent to 75 percent from a year earlier, since it believed the unicircuit industry has opportunities considering ongoing policy support.

The stocks market also proved the positive situation that the sectors of information service, electronics and information equipment led the increases in 2013, while the online game and Internet shares surged 129.61 percent and 125.26 percent respectively.

Despite the growth, institutional hurdles are blocking the industry's sustainable expansion. The guideline encourages private capital to invest in the telecommunication industry.

Meanwhile, small information business-based companies are entitled to enjoy preferential financial support. The government will continue to simplify the administrative approval procedures and cut taxes for those businesses.

We Recommend

• Helicopters, tanks seen during China-Russia joint drill
• Conjoined twins separated in groundbreaking surgery
• Summer photos of Zhang Xinyi, how graceful
• Pakistan celebrates Independence Day
• Beijing Int'l Gifts, Premium & Houseware Exhibition opens
• Kung Fu soccer team trains at Songshan Shaolin training base