MNI China Press Digest April 12: Property, CPI Pork, LPR Cut

Highlights from Chinese press reports on Wednesday:

• Multiple children families in the Fangshan district of Beijing could have property purchase restrictions relaxed, as the local government looks to implement a “one district, one policy” approach, according to proposals submitted by the Beijing Municipal Commission of Housing and Urban-Rural Development. The proposals include lowering the down payment ratio on second homes and increasing the number of houses that can be purchased, according to experts interviewed by 21st Century Herald. Authorities could implement these policies nationwide to other tier one cities, which would increase housing demand and property prices, if approved by the People’s Bank of China, according to the Herald.
• Low food prices were responsible for the weaker than expected CPI rate in March, according to the Securities Daily. Overall food prices fell 1.4% m/m, as better than expected weather lowered appetites and pork prices fell 4.2%. According to experts, the high inventory levels of live pigs and a decline in demand following the Spring Festival kept pork prices low and more policy support was needed to boost demand, according to the paper.
• Authorities will likely not cut China's LPR due to satisfactory Q1 GDP and credit growth, and subdued CPI, according to Yicai. Experts said the central bank has room to support the economy if needed, but will be more inclined to cut the reserve rate requirement (RRR) or increase its targeted lending, rather than launching a policy cut when rates are at historic lows due to concerns about financial risk. Another analyst said authorities have already implemented loose monetary policy and the focus should shift to boosting private sector confidence by improving market access, promoting fair competition and protecting property rights.