MNI China Press Digest Aug 14: M2, Property, Infrastructure

     BEIJING (MNI) - The following lists highlights from the Chinese press for

Tuesday:

     Social financing is weighted down by contraction in off-balance-sheet

financing under strict regulation, but it is likely to grow steadily after new

asset management rules published last month are put in place, China Securities

Journal reported, citing Wen Bin, chief economist of Minsheng Bank, after July's

money supply data was published last night. Unexpected growth in new loans is

mainly driven by policies, as the PBOC injected more liquidity into the market

and released more funds to small- and micro-sized enterprises and

infrastructure, the newspaper said, citing E Yongjian, chief economist of Bank

of Communications. The PBOC should next focus on enhancing the monetary policy

transmission mechanism, guiding more funds into the real economy, Wen added,

according to the newspaper.

     The growth in the mortgage rates for first-time home buyers is decreasing,

and it may have reached its peak in this round, Economic Information Daily

reported. The mortgage rate is unlikely to be lowered nationwide in the short

term, the newspaper said, citing Li Weiyi, a big data analyst from Rong360.  The

housing purchase leverage ratio for individuals has fallen for five consecutive

quarters, marking a total fall of 8.6 percentage points since Q1 17, the

newspaper said, citing a report by E-house Research Institute. Under strict

regulation policies and tight credit, housing purchase leverage ratio will

continue to decline and housing price growth will likely follow, the newspaper

said, citing Shen Xin, an analyst from E-house Research Institute.

     China should evaluate its approach to infrastructure investment amid the

pressures of deleveraging and stabilising economic growth, Securities Times said

in a commentary, after infrastructure investment growth fell to 3.3% in June,

the lowest since 2004. Infrastructure investment should be tailored to each

region's development needs while avoiding strong stimulus measures, the

newspaper said. Infrastructure investment demands structural enhancement, such

as rural infrastructure and energy structure optimization, targeting shorter

links, the newspaper added.

--MNI Beijing Bureau; +86 (10) 8532-5998; email: sherry.qin@marketnews.com

--MNI Beijing Bureau; +86-10-8532-5998; email: beijing@marketnews.com

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