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China Press Digest: Monday, Oct. 23

     The following are highlights from the China press and government websites
for Monday, Oct. 23:
     China's real economy still faces downward pressures as lower returns
discourage investments, National Development and Reform Commission Chairman He
Lifeng told reporters in Beijing on Sunday, according to a transcript on
government portal China.com.cn. China's key economic tasks are to boost private
investment and steer capital to the real economy away from speculation, He said.
The economy will have a value of more than CNY8 trillion at the end of this year
as growth is likely to exceed the government target of 6.5%, said He, who echoed
opinions expressed by other ministers in recent days, including the heads of the
statistics bureau and the central bank.
     China will resolutely stick to its targets for controlling the real estate
market, Wang Menghui, the minister in charge of housing, told reporters on
Saturday in Beijing, the China Securities Journal reported. Government measures
have slowed the growth in property sales and eased price increases, Wang said.
Looking forward, Wang predicted property sales growth would likely slow further
and transaction prices would stabilize. The government will stick to the
"housing isn't for speculation" principle and boost housing supply, particularly
rental units, Wang said. (China Security Journal)
     China will further deepen its supply-side reform measures to strength the
real economy and nurture new drivers for its next phase of growth, the Economic
Information Daily said in an editorial on Saturday. China's economic troubles
are caused by the real economy's structural imbalances in supply and demand, by
the deviation of speculative financing from the real economy and the deviation
of investor and home-owner demand in the housing sector, said the newspaper
owned by the official Xinhua News Agency. China will further remove excess
industrial capacity, continue property controls and deleveraging, and support
weak sectors including municipal services and environmental protection, it said.
(Economic Information Daily)

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