September 11, 2023 00:50 GMT
MNI China Press Digest September 11: LPR, NDRC, CPI
MNI picks key stories from today's China press
Highlights from Chinese press reports on Monday:
- Guangzhou has become the first tier-one city in China to offer first time mortgage rates below LPR, according to 21st Century Herald. The paper said first time buyers can now access mortgages at LPR -10bp at the lower limit. Policymakers said the measures will take effect from September 8, and although down payments for first-time buyers remained at 30%, the minimum down-payment ratio for purchasing a second home will reduce to 40%, which exceeds market expectations. Zheng Dayuan, general manager at Guangzhou Dayuan Mortgage, told the news outlet other tier-one cities will watch Guangzhou's measures closely before deciding to replicate it.
- The National Development and Reform Commission has released a list of 5,000 projects authorities recommend for private-sector investment, according to Securities Times. The central state planner said the projects total CNY5.27 trillion of investments and cover urban construction, ports and agriculture. The NDRC will promote relevant projects next and ensure appropriate guarantees are in place to fully mobilise the private sector.
- Chinese consumer prices rose 0.1% in Aug following July's 0.2% decrease, as recent efforts to boost demand began to show results, according to Yicai. The news outlet said price changes returned to above zero due to the economy entering peak summer consumption and increases in pork prices. Dong Lijuan, chief statistician of the National Bureau of Statistics, stated pork prices increased 11.4% m/m due to extreme weather, with farmers suppressing sales and the central reserve supporting market confidence. Factory prices showed a narrowing of declines from the previous month, with the PPI index decreasing 3.0% in Aug y/y, but an increase of 0.2% m/m.