MNI China Press Digest Aug 22: NIM, Car Dealerships, Energy

MNI (MNI (BEIJING)) - Highlights from Chinese press reports on Thursday:

• The government will support banks to optimise their asset-liability structure and improve profitability after net interest margins fell 19 basis points to 1.54% in the first half, according to Liao Yuanyuan, director at the National Financial Regulatory Administration. Several private banks saw net profit decline in H1 due to increased provisioning, Liao added. Banks’ interest rate spreads will benefit from simultaneously lowering deposits and loans, and strengthening liability cost control, Dongxing Securities said in a report.
• Chinese car dealerships lost CNY1.78 million per store on average in H1, a survey from the China Automobile Dealers Association has found. Consumers' cautious behaviour slowed demand in Q2, especially for fuel vehicles, said Lang Xuehong, deputy secretary-general of the association. The automobile market began large-scale price adjustments causing terminal sales prices to fall lower than wholesale prices, Lang added.
• The NDRC will establish an authority to oversee energy use in fixed asset investment projects as part of measures to save energy, Securities Daily reported. Authorities will implement a new mechanism to manage energy and carbon emissions during and after project completion. The measures will help curb the launch of low quality, high energy and emissions projects, and promote high-quality industrial upgrades, a relevant person from the NDRC said.