August 17, 2022 01:58 GMT
MNI summarises the key stories from the Chinese press on Wednesday.
The following lists highlights from Chinese press reports on Wednesday:
- Economic powerhouses in China should take the lead and play a key supporting role in stabilizing the economy, with the economy at the most arduous point of its recovery, Xinhua News Agency reported, citing Premier Li Keqiang, who was speaking to officials from six major provinces including Guangdong, Jiangsu and Zhejiang. It is necessary for these provinces with large populations to find more ways to promote spending on big-ticket items such as automobiles and fulfill home purchase demand, Li said. Among the six, four coastal provinces contribute over 60% of the total fiscal transfer to the central government and must complete these payments, Li added.
- Chinese government bond yields may decline further as the country's central bank will still maintain reasonably ample liquidity to offset downward pressure on the economy, while money market interest rates will remain low in the short term, the 21st Century Business Herald wrote, citing analysts. Following the PBOC’s surprise cuts to two major policy rates on Monday, the 10-year Treasury yield extended its fall to around 2.60%, which represented a fresh two-year low. The rate cuts ignited bullish sentiment in the bond market, as traders bet on a longer easing cycle given the current economic downturn and limited financing needs, the newspaper noted.
- More Chinese cities are expected to lower down payment ratio demands for house purchases after some cities cut deposit requirements for first-time buyers to as low as 20%, in a bid to prop up the struggling real estate market, the Securities Daily reported, citing analysts. Further relaxation, including optimizing purchase and loan restrictions, in addition to lower mortgage rates, should be deployed to stimulate housing demand, the newspaper wrote, citing analysts. As of early August, nearly 240 cities had issued more than 650 measures to relax housing regulations, ranging from issuing home purchase subsidies and easing purchase restrictions in a bid to attract talented workers, the newspaper noted.