MNI China Press Digest Apr 9: Growth, Overcapacity, Housing

Highlights from Chinese press reports on Tuesday:

• China remains confident the economy can maintain sustained healthy development despite an uncertain external environment and economic operational problems, according to Li Qiang, premier of China. Speaking at a recent symposium with economists and entrepreneurs, Li said authorities should focus on policy implementation to drive scientific and technological innovation and resolve the issue of weak demand. The government needs to resolve risks in key areas and place people’s livelihood in a prominent position, Li added. (Source: Securities Daily)
• China wants to strengthen coordination with all parties over concerns of overcapacity and it will continue to communicate on this with the U.S. at the working group level, said Vice Finance Minister Liao Min on Monday during a media briefing on U.S. Treasury Secretary Yellen’s visit to China. The current production capacities of new energy cars and photovoltaic cells are far from meeting market demand, especially in many developing countries, said Liao. Trade protectionist measures will not help solve the production capacity problem, Liao emphasised. (Source: Ministry of Finance Website)
• More than 10 second-, third- and fourth-tier cities have temporarily scrapped the lower limit on mortgage interest rates for first-time homebuyers to stimulate demand, Yicai.com reported. Mortgage interest rates in many cities have dropped to record lows with a level of 3.45% no longer uncommon. However, many industry insiders have called for price control relaxations on new homes, which will help accelerate market adjustment as the sector waits for prices to bottom. New home sales in 20 key cities during the Tomb Sweeping Day holiday last week dropped by about 30%, compared to the same period in 2022.