MNI China Press Digest Feb 15: Real Estate, Growth, Spending

Highlights from Chinese press reports on Wednesday:

• Migrant workers returning to their hometowns will aid the real estate market recovery in 2023 as local governments promote policies to stimulate demand, according to the 21st Century Business Herald. The paper referenced several real estate exhibitions held during the Spring Festival, with authorities offering multiple incentives such as low down-payments and large discounts. The release of pent up demand following the easing of Covid controls, ongoing urbanisation, and migrant workers returning to their hometowns to settle were factors benefiting the property market recovery in lower tier cities, according to the paper.
• Recent high-frequency data shows China’s economic recovery is gaining strength, which lays a good foundation for the economy in 2023, according to Shanghai Securities News. From January 30 to February 5, offline sales revenue for home appliances were up 41% y/y, and online sales up 158%. The paper said traffic and mobility flows in areas surrounding 100 leading incubators increased 17% in January m/m and 8.5% y/y, showing a rebound in the start-up sector. Job vacancies in the top 80 cities were up 14.3% m/m, according to the paper.
• More policy stimulus is needed to convert excess savings into consumption, as January saw retail deposits increase, according to the Securities Times Network. Bank deposits increased by CNY1.6 trillion in January, as residents remain wary of the economic recovery, volatile stock prices, and a depressed real estate sector, the paper said. In order to convert savings into consumption, greater use of spending vouchers should be used to stimulate demand for consumer products and automobiles. Looser monetary conditions would increase the value of the stock market and boost confidence. Finally, increasing social security in the form of pensions, medical treatment and education is needed to reduce the high savings culture in China.