China Press Digest Sep 30: SMEs, Q4 RRR Cut, Real Estate

The following lists highlights from Chinese press reports on Wednesday:

• China's ministries are ramping up efforts to introduce a new round of policies to support businesses in the operating environment, fund-raising and innovation, the Economic Information Daily said. Authorities are to further lower barriers of market entry and shorten the so-called negative list that restricts private capital, including setting up pilot areas in Shenzhen, Shanghai and other cities, said the newspaper run by Xinhua News Agency. The government will make financial information more accessible, including taxation and social security payments, helping businesses utilizing credit and capital-raising platforms, said the daily. Some ministries are also promoting innovative SMEs mainly through funding the so-called "little giants" of innovation program, said the daily.
• The People's Bank of China may implement another across-the-board cut to the banks' required reserve ratios in Q4 to further loosen up credit and inject long-term capital to help banks' boost lending, the 21st Century Business Herald reported citing analyst Wang Qing with Golden Credit Rating International. Wang commented after the central bank conducted CNY100 billion 14-day reverse repo purchases on Tuesday, the eighth straight day injection to ease concerns about shortage due to the week-long national day holiday starting Oct. 1 and the expected increase in local government bond sales, said the newspaper. The Q3 monetary policy committee meeting held Sept. 24 called for "strengthening the consistency in credit growth," a sign that policymakers want a stronger foundation for economic growth from yearend to early next year, Wang was cited as saying.
• China's policies on curbing bubbles in the real estate market will be steady and consistent, and the market should not expect authorities to loosen measures for the sake of stimulating growth, nor that the restrictions on fundraising by developers are be lifted, the Economic Daily said. The official newspaper commented after the central bank's monetary policy committee mentioned "protecting housing consumers' legal rights" following its recent Q3 meeting, raising speculations that authorities may ease controls on the sector given capital shortages have forced many developers to halt projects. The PBOC is sticking to its prudent monetary stance, and the financial system overall can withstand risks, said the newspaper. Relevant regulators should set up systems to monitor property industry risks and properly guide market expectations, said the newspaper.