MNI China Press Digest Aug 11: Growth, Country Garden, Stock

Highlights from Chinese press reports on Friday:

• China will need 4.5% y/y growth in the H2 to achieve its 5% y/y growth target, which depends on whether policies can boost real estate while offsetting export decline, said Luo Zhiheng, chief economist at Yuekai Securities. Though the y/y growth in Q2 accelerated to 6.3% from Q1’s 4.5%, the two-year average growth excluding the base effect decelerated to 3.3% from Q1’s 4.6%, indicating a slower recovery. H2's two-year average growth will need to reach 3.95% to meet the target. Luo noted authorities must ensure policy stability, fulfill promises made by local governments, improve anti-monopoly and competition laws to boost the confidence of private companies. (Source: 21st Century Business Herald)
• Country Garden is preparing to restructure its debt soon, Yicai understands. The developer has hired China International Capital Corporation to assist the restructure and recently released a statement saying it will maintain communication with creditors and take various debt management measures to ensure the long-term development. Insiders believe Country Garden can overcome current difficulties given its low leverage. (Source: Yicai)
• The Shanghai Stock Exchange (SSE) will introduce post-market fixed price trading for ETFs to meet demands of investors and reduce the impact of passive tracking. To increase market vitality, the SSE said investors will have lower costs from reducing integer quantities of stocks on its main board from 100 to 1. The exchange plans to release English versions of transaction and business rules and seek to implement global best practices. (Source: 21st Century Business Herald)