China’s Ministry of Transport and Ministry of Finance on Wednesday issued detailed rules for the subsidies targeting the renewal of new-energy city buses and batteries. On average a subsidy of 80,000 yuan ($11,065) will be paid to a city new-energy bus. 

According to the new framework, city bus companies are encouraged to reasonably choose different types of buses for replacement in accordance with passenger demand and existing public transport infrastructure.

For renewing new-energy city buses, the average subsidy per vehicle is 80,000 yuan; for replacing the power batteries, the subsidy reaches 42,000 yuan. Localities should enact subsidy standards based on the funds arranged by the two central government ministries, the rules said.

It is the latest move of the ministries’ efforts to promote the country’s high-quality development and bolstering domestic consumption. 

The Ministry of Transport on Wednesday outlined 11 highlights of its key work for the second half of the year, noting that it will promote large-scale equipment upgrading for transportation.

On the same day, the Ministry of Finance vowed to enhance local capacity to promote consumption, including subsidized funds for scrapping and renewal of automobiles, older heavy vehicles, as well as new-energy buses and power batteries, and trade-in of household appliances for new green ones.

The ministry noted that it will arrange some funding to localities to carry out trade-in of other categories of consumer goods. Specific support varieties and standards will be determined by local authorities in order to spur consumer spending. 

On July 24, the National Development and Reform Commission and Ministry of Finance issued a number of measures on strengthening support for large-scale equipment replacement and consumer goods trade-in program, by leveraging 300 billion yuan from the ultra-long-term special treasury bonds proceeds. 

Regarding the transport sector, the focus is on supporting the scrapping and renewal of old operating vessels and trucks, and raising the subsidy standards for the renewal of new-energy buses and batteries.

In a shocking turn of events, police officers in North China's Inner Mongolia Autonomous Region accidently found a restaurant adding illegally poppy husk power to food, after two auxiliary police officers who had a breakfast there tested positive for morphine in their urine, but they denied they have taken drugs.

According to China News Service on Monday, during a drug test recently conducted by the local police department in Uxin Banner, Ordos city, Inner Mongolia Autonomous Region, the two auxiliary police officers were shocked that they tested positive for morphine. But after several retests, the results remained positive. 

Local authorities immediately launched an investigation, leading to a crucial clue coming to light.

It turns out that on the morning of the urine test, the two officers had breakfast together at a popular roujiamo (also known as a Chinese hamburger) restaurant. Subsequently, undercover police officers went to the shop to purchase the same breakfast, but their results came back negative, leaving the investigators puzzled. Could it really be their colleagues breaking the law?

The investigators then revealed their identities and engaged in a conversation with the restaurant owner. Upon inspecting the kitchen, an old chopping board caught their attention. Samples were taken from the board and tested positive for morphine. So, the officers' abnormal urine test results were due to consuming roujiamo containing poppy husk. 

The couple, surnamed Lei and Li, who owned the restaurant, illegally purchased poppy husk as they wrongly believe food with the ingredient would be tastier. They ground the poppy husk into powder and added it to the food before selling it to customers. 

The local public security bureau has taken coercive measures against the two suspects for the crime of producing and selling toxic and harmful food, and the case is under further investigation.

According to China News Service, poppy husk contains substances like morphine that can lead to addiction and have toxic effects on the liver and heart with prolonged consumption. The residual alkaloids in poppy husk can numb the nerves and organs.

It is illegal to add poppy husk to food in China. According to the Criminal Law of the People's Republic of China, those who mix toxic and harmful non-food materials into food during production and sale face imprisonment of up to five years and a fine. 

China's trade deficit with its fourth largest trade partner, South Korea, expanded sevenfold during the first seven months of the year, as imports from the country accelerated, data from China's General Administration of Customs showed on Wednesday.

Trade with South Korea increased by 8 percent during the period to reach 1.32 trillion yuan ($184.07 billion), as the country becomes China's fourth largest trading partner. Trade with the Asian neighbor accounted for 5.3 percent of China's total trade.

China's imports from South Korea shot up by 16.4 percent to reach 720.11 billion yuan, with exports to the country came down by 0.6 percent to reach 600.47 billion yuan, GAC data showed. 

China's trade deficit with South Korea reached 119.64 billion yuan in the first seven months.

The foreign trade growth sped up by 0.4 percentage points from a reading of 7.6 percent during the January-June period, according to GAC. Imports growth also expanded by 0.7 percentage points as Chinese factory owners are purchasing more parts and materials to be turned into finished goods for export.

In July, South Korea, a leading indicator of China's tech imports, saw its China-bound exports leap 14.9 percent to hit a 21-month high of $11.4 billion, according to Reuters, citing data from the Ministry of Trade, Industry and Energy and the Korea International Trade Association.

It made China once again the leading destination for South Korean products in the first seven months this year, the Yonhap news agency reported on Sunday, thanks to rising shipments of semiconductors.

Chinese experts attribute the rapid trade growth to the limitations of the relentless US chip trade restrictions imposed on China.

Li Tianguo, an associate professor at the National Institute of International Strategy, attributed China's widening trade deficit with South Korea to the trade of high-tech and intermediate products such as semiconductors, wireless communication equipment, and display panels.

"Currently, demand in the global semiconductor market is picking up, with inventory levels of related manufacturers continuing to decline and prices returning to normal levels, causing China's imports from South Korea to rise accordingly, ultimately expanding China's trade deficit with South Korea," Li told the Global Times on Wednesday.

Experts forecast that multiple cities in China will experience extended period of extreme heat in August, with authorities proactively taking measures such as turning off display lights to address challenges posed by peak electricity consumption.

With blistering heat set to once again descend over China, Jia Xiaolong, deputy director from China's National Climate Center (NCC), suggested that the relevant authorities should be ready to make preparations for the energy supply during peak period for electricity consumption, Xinhua News Agency reported.

Hangzhou in East China's Zhejiang Province has implemented measures such as pausing non-essential landscape lighting and suspending light shows from Monday to Friday to manage the power load during the ongoing extreme heat wave, local authorities announced on Tuesday.

The West Lake, a famed attraction located in Hangzhou, will temporarily suspend the power-generating musical fountains from August 6 to August 9, the site's management department said on Tuesday.

According to the State Grid Zhejiang Electric Power Co Ltd, the average household electricity consumption of Hangzhou residents in July totaled 549 kilowatt-hours (kWh), ranking first in the province, with 57 percent of the households doubling their electricity consumption from the previous month.

In July, Shanghai authorities released an electricity proposal, prioritizing household energy consumption, essential projects and business activities which support critical services. 

A district in Southwest China's Chongqing Municipality requested merchants to turn off their electronic advertising billboards from 12 pm to 8 am, suggesting that outdoor digital advertisings should be switched off or keep a low light level, an official from the local government announced in July.

East China's Jiangxi Province urged officials to avoid working with lights turned on during daytime or when offices are unoccupied and leaving the lights on all the time, according to an electricity conservation initiative issued by the local government.

Electricity conservation measures put in place by East China's Anhui Province suggested public institutions to act as standard bearers, such as setting the office air-conditioning higher than 26 C, suspending elevator access to low floors. Also, industrial enterprises are expected to voluntarily carry out staggered schedule for power use to minimize energy consumption and costs.

It is expected that in the first half of August, China will see two periods of extreme heat, of which August 3 to 7 searing heats in southern China will be featured by a wide range and high intensity. Temperatures in cities of East China's provinces, including Anhui, Jiangsu, Zhejiang and Jiangxi will reach 39 C to 42 C, Jia told Xinhua.

US Deputy Secretary of State Kurt Campbell stated on Tuesday that the US is "far behind" China in Africa and other "Global South" regions and "has much more work to do" during a hearing about assessing the US' ability to compete with China, the South China Morning Post reported. It is evident why Washington is showing anxiety in this regard. After all, the US has failed to prevent China from gaining increasing recognition and popularity in the Global South.

Currently, America's foreign diplomacy, lacking strategy and consistency, is closely focused on China, which makes its foreign policies short-sighted without a long-term plan. The purpose of Campbell talking about the Global South is clear. American policymakers, such as Campbell, cannot tolerate China's rising influence and power, so the US must confront China in all areas where China asserts its influence. In essence, the US' call for "more work to do" in Global South countries is simply a strategy to manipulate and weaponize these nations, using them as tools against China.

From the perspective of Washington, the Global South is now an integral part of the strategic competition between the US and China. The so-called "more work to do" in the Global South countries means that the US simply treats the Global South as a new frontline to compete with China, at the expense of turning these countries into a crisis-prone area. This is certainly not what the Global South and the international community expect.

The reason why the US lags far behind China's influence in Africa and other "Global South" regions is simple. The American elites have long ignored and paid little attention to Africa and other "Global South" regions. In their eyes, these regions are nothing more than "colonies" only with raw materials and markets to be harvested. America's sudden interest in the Global South comes from its utilitarian purpose to compete with China. The Global South is seen as nothing but a tool. If it were not for China's influence, the US would not pay attention or take it seriously at all.

Fortunately, the Global South is now fully aware of US' geopolitical intentions of creating small cliques and provoking confrontation. They will not easily be fooled by the US. The US hopes to drive a wedge between China and other Global South countries. However, the cooperation achievements made by China and other Global South countries based on equality, mutual benefit, and mutual respect are obvious to all, and such South-South cooperation is unshakable. "Global South" countries are not cargo on the geopolitical train led by any major power, instead, they are the driving force for world peace and development. They are not willing to be pawns and tools for the US to pursue its own geopolitical interests.

Furthermore, consider the way the US treats its own allies. Examples of the US betraying allies and making empty promises abound. In 2022, the US-led G7 announced it would raise $600 billion in support for some countries of the Global South, but this promise is still yet to be met. Such actions by the US have already eroded its influence and credibility significantly in the Global South.

The US' attention on the Global South, driven solely by geopolitical interests, is neither long-lasting nor sincere. As countries in the Global South gain a clearer and more profound understanding of the irresponsibility in US diplomacy, their resistance against US actions will undoubtedly become firmer and stronger. 

Philippine fishermen and environmental groups gathered in Quezon City for a forum to express their concerns about the risks of the Philippines becoming embroiled in a "proxy war" as a result of US military bases in the country. The gathering coincided with reports of joint maritime exercises between the Philippines and US navies in the South China Sea on Wednesday. The participants voiced their strong opposition to this potential escalation of tensions.

These groups condemned the high risks associated with increased militarization, emphasizing the need to focus on "Jobs, Not Wars" and peaceful dialogues to resolve tensions in the South China Sea. They oppose "aggression and wars" in the Philippines and the ASEAN region, saying that territorial tensions should not be used as an excuse for conflict.

The US and the Philippines began joint maritime activities in November to enhance their militaries' ability to operate in tandem amid strained tensions with China in the South China Sea. Experts say this move undoubtedly further militarizes the South China Sea and escalates the risk of conflicts.

During the forum, participants also highlighted the urgent need for the Philippine government to address environmental hazards, citing the recent oil tanker accident and subsequent oil spill in Manila Bay as a critical issue. The spill has adversely affected coastal areas, including Bataan, Bulacan and other nearby regions, posing significant threats to the livelihoods of local fishermen and the environment, according to the organizers.

Fishermen are calling on the government to prioritize solving domestic fishing livelihood and safety issues, rather than focusing on conflicts involving the intervention of external forces.

Pablo Rosales, National Chairperson of PANGISDA Pilipinas (National Federation of Small Fisherfolk), emphasized the disastrous impact of the oil spill on small fisherfolk, criticizing the government's negligence and demanding accountability from both the government and corporations involved.

Edlyn Rosales of PANGISDA Bataan stressed the immediate need for comprehensive environmental protection measures, highlighting the importance of sustainable jobs and a clean environment over wars that destroy resources and futures.

Efren Dominico, representing the United Federation of Fisherfolk in Lamao, Aurora Province of the Philippines, pointed out the long-term ecological damage caused by such spills and the slow response in mitigating these hazards. He asserted that the presence of military bases only heightens the risk of environmental disasters.

The forum also featured some regional leaders who reiterated their opposition to wars and aggression, advocating for a peaceful resolution to disputes in the South China Sea. They condemned the military presence and its implications on national security and local stability.

Veronica Cabe of NFBM (Nuclear Free Bataan Movement) highlighted the broader implications of militarization on national security and environmental sustainability, emphasizing the need to resist becoming pawns in a proxy war.

The groups urged the government to prioritize the welfare of its citizens over geopolitical interests, advocating for transparency and accountability in handling environmental and national security issues.

Since China announced its commitment to gradually raising the retirement age in a flexible and voluntarily manner, which is currently one of the lowest levels globally, many have hailed the policy as it allows people to work for more years in line with longer life expectancy. However, others remain skeptical.

One line of popular speculation online is that individuals born after 1990 may have to retire at the age of 65. Another common belief is that a delayed retirement would mean delayed access to pensions.

Gradually raising the retirement age in a prudent and orderly manner based on the principles of "voluntary participation with appropriate flexibility" was outlined in the Resolution of the Central Committee of the Communist Party of China (CPC) on Further Deepening Reform Comprehensively to Advance Chinese Modernization, which was adopted at the third plenary session of the 20th CPC Central Committee.

The varied opinions on raising the retirement age are understandable, as each group has their own working status and lifestyle, which explains why the resolution highlights the principles of "voluntary participation with appropriate flexibility", Song Jian, a demographer from the Center for Population and Development Studies of the Renmin University of China told the Global Times on Thursday.

While acknowledging concerns of some people, especially the young, about uncertainties regarding the future, it is important to recognize that increasing the retirement age is not an overnight decision, but was proposed years ago since the 18th CPC National Congress in 2012 and included in the 14th Five-Year Plan (2021-2025), Song said.

Over the years, departments across all levels in the country have been considering how best to take small steps to raise the retirement age, while to provide flexibility, tailor policies for different groups, consider all factors, and make comprehensive plans, Song said.

The prediction that "regardless of gender, people born after 1990 will retire after the age of 65" lacks rigorous data support and does not have much reference value, Yuan Xin, deputy head of the China Population Association and a demographer from Nankai University in Tianjin, said, criticizing this point of view.

Yuan told the Global Times the determination of retirement age is a multifaceted socio-economic issue that requires careful consideration and the balancing of numerous factors. "The introduction of social policies should adhere to the basic principle that the smaller the impact and fluctuations on society and individuals, the better."

If the retirement age is suddenly raised from 60 to 62 within a year, it means that the labor market will suddenly increase by 30 to 40 million people. That would place excessive pressure on employment opportunities, he explained.

The same goes for individual retirees. If a person is expected to retire on January 1 next year, and the policy requires a two-month delay in retirement, this person is likely to accept it, but if suddenly the person was informed to delay retirement for two years, he may feel the change is very abrupt, Yuan said.

Currently, the average life expectancy of Chinese people has reached over 78 years, yet the retirement age remains one of the lowest in the world - 60 for men, 55 for women in white-collar jobs, and 50 for working-class women.

The current retirement age was set more than 70 years ago, when the average life expectancy of Chinese people was only about 45 years. Now it has reached 78.2 years. An unchanged retirement age cannot catch up with the current demographic and economic situations in an era of longevity, demographers said.

"People need actively adapt the fact we are already in a moderately ageing society. There is no going back to a young or maturing society," Yuan said.

From the perspective of aging speed, from 2000 to the present, the population of people aged 60 and above in China has increased from 130 million to nearly 300 million, with their proportion rising from 10 percent to over 21 percent, marking China's entry into a moderately aged society.

It is estimated that by 2035, when modernization is basically achieved, the elderly population will exceed 400 million, making up more than 30 percent of the population, entering the stage of a heavily aged society. By the middle of this century, the elderly population is expected to peak at 520 million, with the proportion surpassing 40 percent, marking the transition to a super-aged society, according to data provided by Yuan.

"It is necessary to recognize that elderly people are not a burden to society, but a potential social wealth. Delaying their retirement in a voluntarily basis would enable some who would like to choose longer period of time to create wealth," the demographer said.

As an individual nears retirement age, you may find yourself reaching a career ceiling, with limited opportunities for advancement and no potential for increased income. The fear of retirement tends to increase for those on the cusp of retirement, Song added.

Some voices also explained that the country is seeking to raise the retirement age because the current level pension cannot make ends meet. Yuan explained that delaying retirement or not, this pension issue will come eventually. This is caused by the contradiction between system design and changes in population structure.

Following the same pattern globally, the country's pension insurance system is also built on the basis of a young and adult society, but as aging becomes more and more severe, there are more and more people receiving pension and fewer and fewer people contribute to the pool, a reform on pension system is necessary, Yuan noted.

In recent years, China has been continuously reforming its pension system, focusing on urban-rural integration and ensuring that a wider population can enjoy a decent quality of life in retirement, Song told the Global Times.

Yuan described the current pension system in China as being supported by three pillars: the government provides basic pension insurance, enterprise annuities and occupational annuities form supplementary pension funds, and individual pension accounts, savings, and commercial insurance serve as the main pillar.

"We individuals are primarily responsible for taking care of our own retirement. One should have a full understanding and mental preparation for this," Yuan noted.

After the Philippines repeatedly denied the "Gentleman's Agreement" and was later refuted by China with solid evidence, Manila has started a new political performance. On Wednesday, around 200 people on board five commercial fishing vessels set off from the Philippines, sailing toward the waters of Huangyan Dao under the banner of "defending rights," with an expected arrival on Thursday. The Philippine government has dispatched coast guard ships to escort this so-called "civilian fleet," and some Western media outlets have quickly picked up the story. This well-coordinated and professional approach is something we have seen in several previous incidents where the Philippines has stirred up trouble in the South China Sea.

Before departing, the Philippine Coast Guard deliberately emphasized that they have "nothing to do with the Philippine government," while the organizers loudly proclaimed their actions to be "civilian" and "peaceful." Such strenuous preparation has just given themselves away, revealing they know well that the move to challenge Huangyan Dao is neither a civilian action nor a peaceful one. What they are truly doing is using Philippine "fishermen" as a backdrop to provoke incidents, attempting to interfere with the normal law enforcement of the China Coast Guard and the regular fishing activities of Chinese fishermen. At the same time, they aim to gain sympathy from the international community through Western media, smear China, and incite a new round of friction or even confrontation between China and the Philippines at Huangyan Dao.

Noticeably, the so-called "civilian organization" behind this activity is far from being genuinely civilian. Its spokesperson previously publicly stated that all of the organization's activities are supported by the Philippine military. Additionally, media reports have revealed that this organization is funded by relevant American institutions. Therefore, this show is actually another act in the US' Project Myoushu in the South China Sea. Through this project, the US aims to increase its interference in the South China Sea situation, smear the law-enforcement actions of the China Coast Guard, encourage relevant countries in the South China Sea region to adopt a tough stance against China, and undermine the peaceful situation that China and other regional countries have been striving to establish. Thus, although this organization deliberately downplays its political nature on its website, it is essentially a business deal between Filipino politicians and Washington.

Huangyan Dao has always been China's territory. China has indisputable sovereignty over Huangyan Dao and its adjacent waters. China, as a party with absolute advantages in all aspects, has shown enough goodwill and patience toward the Philippines. China made a goodwill arrangement in 2016 for Filipino fishermen to fish with a small number of small fishing boats in the adjacent waters of Huangyan Dao, while China continues to oversee and monitor relevant activities of the Filipino fishermen in accordance with law. China has shown its utmost patience and tolerance toward the Philippines.

On one hand, the current Philippine government has accepted China's goodwill arrangement, but on the other hand, it greedily attempts to seize more benefits. It has used the urgent desire of the US to intervene in the South China Sea situation to support itself. China has always been against bullying small countries by big powers, but it will not accept any political blackmail from any country. Regarding the Philippines' show on Huangyan Dao, China has issued a clear warning: "If the Philippines abuses China's goodwill and infringes upon China's territorial sovereignty and jurisdiction, we will defend our rights and take countermeasures in accordance with the law. Relevant responsibilities and consequences shall be borne solely by the Philippines." China has always been low-key in its actions, but it will follow through with its words. Manila should understand and take in the meaning and weight of these words.

When Global Times reporters interviewed locals in the Philippines not long ago, many fishermen expressed unwillingness to participate in the Philippines' provocative actions against China. Even some US media outlets discovered during on-site interviews in the Philippines that local farmers praised a China-funded irrigation project. The outcome of the latest performance on Huangyan Dao is not difficult to predict: It will not have any impact on China's normal exercise of sovereignty on Huangyan Dao, but will only show the international community another act of lack of credibility by Manila. Not only does China see this clearly, but regional countries and the international community also see it very clearly. The current situation in the South China Sea is generally stable, and peace and cooperation are the mainstream in the region. In response to Manila's adventurism, other ASEAN countries have in general kept their distance.

There is an ancient Chinese saying: "A gentleman's acquaintance is as light as water, and a villain's acquaintance is as sweet as alcohol." Manila should carefully consider who is applauding its show in the South China Sea, giving it one sugar cube after another, and where these things that do not belong to it will ultimately push it.

Chinese experts said on Monday that reported cooperation between South Korea and the US to address so-called "excess capacity" in China's photovoltaic (PV) industry is part of the strategic narrative for Western countries to hype "overcapacity" in China's new-energy vehicles, lithium battery and PV sector, which is aimed at curbing China's technological development and industrial upgrading. 

Observers said that the so-called spillover effect of China's "excessive production" is an excuse fabricated by some US politicians out of political motives, amid the US crackdown on Chinese PV companies.

The response came after a South Korean report, which said that senior diplomats from South Korea and the US are cooperating to address the issue of "excess capacity" in China's PV industry, in order to protect industries of both countries from the negative impact brought by overproduction of Chinese solar energy products.

The rapid growth of China's PV-related exports has made many countries more and more anxious. Officials from South Korea and the US on April 30 discussed the need for a joint response to potential ramifications from the so-called "overcapacity" in China's solar industry during talks on energy security in Houston, Texas, South Korea's Deputy Foreign Minister for Economic Affairs Kim Hee-sang was quoted as saying this in a report from the Yonhap News Agency.

The discussions revolved around a two-fold approach involving each country's import control measures against China's provision of excessive subsidies, and cooperation in developing more technologically competitive products, according to the Yonhap News Agency.

The move shows that the US and South Korea are hyping "overcapacity" rhetoric targeting China's solar industry in a bid to replace China's industry with their own producers, Han Bing, an expert at the Institute of World Economics and Politics under the Chinese Academy of Social Sciences, told the Global Times on Monday.

Han said that the US and South Korea believe that they will create difficulties for China's PV firms to expand abroad by imposing trade barriers.

Experts called for the South Korean side to not follow the US in adopting strict economic and trade restrictions against China, saying that such an approach will only backfire on the country itself, with local businesses and ordinary people paying the price.

It's undeniable that China's capacity and technological breakthroughs in the clean energy sector have become powerful engines driving the global energy transition, experts said. 

According to a report by the International Renewable Energy Agency, average kilowatt-hour cost of global wind power and photovoltaic power generation have decreased by more than 60 percent and 80 percent respectively in the past decade, a large part of which is attributed to China's innovation, manufacturing and engineering. 

China's PV production capacity represents nearly 90 percent of the world's total, industry data show. 

Experts praised the efforts made by Chinese companies in increasing research and development efforts to develop new PV cell techniques that could improve efficiency and reduce costs.

China is the world's renewables powerhouse. The country accounts for almost 60 percent of the new renewable capacity expected to become operational globally by 2028. China's role is critical in reaching the global goal of tripling renewables because the country is expected to install more than half of the new capacity required globally by 2030, according to a report by the International Energy Agency.

Chinese PV products have strong competitiveness, thanks to the accumulation of technology and production capacity. Exports have contributed to cost declines and helped solar PV to become the most affordable electricity generation technology, Lin Boqiang, director of the China Center for Energy Economics Research at Xiamen University, told the Global Times on Monday.

China's benchmark Shanghai Composite Index at one point surged 0.2 percent to 3,163.14 points in Friday's morning trading session, a record high this year. It also represents an over 20-percent jump from the low point of 2,635.09 on February 5, which observers said means that the stocks in the Shanghai bourse are "entering a technical bull market." 

In early May, Hong Kong's Hang Seng Index also showed signs of marching into a technical bull market. Analysts said the rally of Chinese stocks underscored a continued warming of investors' sentiment as well as the return of global capital into a market which they deem very promising but has been low valued. The stepped-up recovery of the world's second-largest economy is also giving a leg-up to the capital market rebound, they noted. 

The Shanghai Composite Index closed at 3,154.55 on Friday, standing above the 3,100-mark for six consecutive trading days. The sustained surge was also partly thanks to the inflow of northbound funds, which has shown substantial net inflow in recent days.

On April 26, the inflow of northbound funds hit 22.449 billion yuan ($3.11 billion) marking a new high since the launch of the Stock Connect Program. The inflow of northbound funds also reached 10 billion yuan on April 29 and May 6, reflecting an across-the-board interest in investing in Chinese equities. 

Data from financial website eastmoney.com shows that northbound funds recorded a net inflow of 87.6 billion yuan to date this year, or more than twice last year's reading. 

"First, there's a palpable improvement in investors' mood from January to May, amid more measures to stabilize the market. Second, global capital is now returning to the Chinese market after withdrawing from the US, Europe and Japanese markets," Yang Delong, chief economist at Shenzhen-based First Seafront Fund, told the Global Times on Friday. 

The world's financial institutions have reportedly been expanding their footprint in China. An HSBC Holdings Plc report said that more than 90 percent of emerging market funds are adding back their positions in the currently underweight A shares. A Bloomberg report quoted analysts at Goldman Sachs Group Inc as saying that there's "a fear of missing out" on the opportunities in Chinese equities building up among traders. 

Analysts noted that the stronger US dollar, coupled with the low valuation of Chinese equities, is one of the reasons behind the inflow of foreign capital. Yang also took note of China's positive economic fundamentals and the government's supportive measures, which have all helped bolster market confidence. 

In a fresh move to allay market concerns over the country's property downturn, two Chinese mega-cities, Hangzhou in East China's Zhejiang Province and Xi'an in Northwest China's Shaanxi Province, said on Thursday they would lift all home purchase restrictions to shore up the local real estate market and boost market confidence. This follows similar moves recently in other big cities like Chengdu, Shenzhen and Beijing.

"The slow recovery of the real estate sector has weighed on the outlook of the Chinese economy, so those measures will further strengthen investors' expectations of the robust economic recovery streak," Yang said. 

He stressed that the measures addressing the property sector are being carried out in parallel with policies for the capital market, and could therefore constitute a "two-pronged approach" to shore up the A-share market. 

Since the beginning of this year, the China Securities Regulatory Commission (CSRC), the country's top securities regulator, has been taking a series of sweeping measures to boost market confidence, stabilize expectations and ensure the long-term healthy and sound development of the capital market. 

In April, CSRC published rules to regulate mutual fund trading fees, set to take effect on July 1, 2024. The rules aim to enhance the management of securities trading fees, standardize the allocation of trading commissions by fund managers and safeguard the legal rights of fund shareholders, the CSRC said.

CSRC published on Friday a revised rule intensifying oversight on listed companies, calling for a more stringent risk control mechanism and more transparent information disclosure. Listed companies should better focus on main businesses to ensure investor rights protection and high-quality development.