MNI China Press Digest Aug 2: Hukou, Property, State Grid

Highlights from Chinese press reports on Friday:

• China will cancel migrant urbanisation restrictions in cities of less than 3 million people and comprehensively relax them in cities of between 3 million to 5 million, according to a State Council plan. For cities above 5 million, authorities will improve the settlement system and encourage the cancellation of quota restrictions, the plan said. Niu Fengrui, director of the Small and Medium-sized Cities Research Institute, said last year China achieved an urbanisation rate of 66% versus an urban registered population of 48%, with the difference due to migrants unable to obtain residency.
• First-tier city Guangzhou has lowered its homebuying threshold by allowing buyers to use provident funds towards property down-payment, 21st Century Business Herald reported. New residents with a few years work experience will benefit most from the new measure, said Li Yujia, chief researcher at the Guangdong Urban & Rural Planning Institute. Authorities were faced with limited policy options, having already lowered buying restrictions and down-payment ratios to historical lows, Li added. H1 floor space sales in Guangzhou were at a five-year low, the newspaper said.
• China State Grid Corporation will invest a record CNY600 billion this year, up CNY71.1 billion y/y, Securities Daily has reported. The State Grid will invest in ultra-high voltage projects, strengthening the connection between county and large power grids and upgrading grids to be intelligent and digital, according to reports. In H1, China’s electricity consumption increased 8.1% y/y, with agriculture, industry and services sectors up 8.8%, 6.9% and 11.7%.