MNI China Press Digest April 2: Property, Yuan, Holiday Trips

Highlights from Chinese press reports on Tuesday:

• Upper tier-two city Zhengzhou will allow the local government financing vehicle Zhengzhou Urban Development Group the right to purchase established housing to support residents in “selling old buy new,” Yicai.com reported. The company plans to buy and transform commercial property less than 20 years old into affordable rental housing. The government will also offer a 30% tax subsidy for persons who replace current property with new homes. The city plans to complete the replacement of 10,000 second-hand houses this year to activate demand.
• The Yuan will be supported by economic fundamentals should data continue an upward trend from the start of this year, according to Guan Tao, former director of international payment department at the State Administration of Foreign Exchange. Guan said Jan-Feb results showed supply and demand were better balanced, and noted PMI for new export orders reached 51.3% indicating strong external demand. When analysing the Yuan FX rate, investors should not only look at Fed policy, but also consider the speed and quality of China’s economic performance, he added. (Source: Yicai)
• The government expects China’s cross border passenger flows during Tomb Sweeping Day holiday will reach 1.78 million, up 74.5% y/y, according to a forecast by the National Immigration Administration. In particular, analysts expect a significant increase in residents from Hong Kong, Macao and Taiwan returning to hometowns for ancestor worship. In preparation a large volume of travellers, the administration has instructed border agencies to improve the timely release of passenger flows at border control. (Source: 21st Century Business Herald)