China Press Digest Nov 3: Down Pressure, Real Loans, Carbon

The following lists highlights from Chinese press reports on Wednesday:

• China's economy faces new downward pressure, Premier Li Keqiang said, calling for the formulation of new "phased, coordinated" policies lowering business taxes and fees to address the production and operational difficulties for small and proprietary businesses, Xinhua News Agency said. Li, who chaired a meeting with market regulators on Monday, also urged financial institutions to transfer a reasonable portion of profits to the real economy, according to the official news agency. Authorities should also ensure stable supplies and prices of electricity and coal and use unemployment insurance to support workers, said Xinhua citing Li.
• China's property loans increased significantly in October, an indication that the crackdown on real estate lending has been eased, the Shanghai Securities Journal reported. Top policymakers and regulators have "corrected some misunderstandings" about the property financing rules which barred some loans for legitimate projects, and banks have been given the permissions to orderly provide credit, the newspaper said. Real estate loans slowed in the first three quarters as the Evergrande Group's debt crisis made lenders more averse to the sector, the newspaper said. However, with the changing regulatory environment, real estate loans are likely to resume the pace of growth, and property project reserves will be increased to ensure the steady development of the sector, the newspaper said citing analysts.
• China remains confident in achieving carbon peak and neutrality goals as it shifts its economy to high-quality development, and westerners should not think that the country is returning to coal-based development after experiencing the current power crunch, the Economic Daily said in a commentary. The coal shortages seen in China were due to insufficient supply, as the country had closed many mines and withdrawn a billion-ton production capacity during supply-side reform since 2016, the newspaper said. The recent power crunch in more than 20 provinces reminded the authorities that low-carbon transition must be done orderly, and a stable energy supply ensures development, the newspaper said.