Beijing's release of wealth divide data gets mixed reception

The central government's decision to release a key measure of income inequality has been welcomed, with analysts describing it as a good first step by the new leadership to deal with arguably the country's most explosive political issue.

But the praise was tempered with criticism that the way the wealth distribution data was being released appeared to play down the severity of the problem.

On Friday, the government officially acknowledged for the first time in 12 years the size of the gulf between China's rich and poor, saying the country's Gini coefficient was 0.474 last year, well above the 0.4 warning level set by the UN.

Under the scale, zero represents perfect equality, meaning everyone has equal wealth, and one represents perfect inequality, meaning one person has all.

The National Bureau of Statistics (NBS) last released the figure in 2000, when it hit 0.412, but it said the Gini index had decreased every year since 2008, when it peaked at 0.491.

The publication of the data comes two months after Xi Jinping and Li Keqiang ascended to the top two spots in the ruling Communist Party. They are set to take over in March as president and premier, respectively, completing a once-in-a-decade power change.

"I believe it is a first step that reflects the new leadership's more open approach and its desire to promote transparency," said Ma Guoxian , director of Shanghai University of Finance and Economics' Public Policy Centre.