MNI China Press Digest Aug 23: Sino-US, Yuan, Real Estate

Highlights from Chinese press reports on Wednesday:

• Chinese and American companies will benefit from the U.S. action to remove 27 Chinese entities from its "unverified list" of export control which will help normalise trade between the two countries, according to a statement from the Ministry of Commerce. China and the U.S. made joint efforts prior to the decision, which was in the common interests of both parties, the ministry said. According to National Business Daily, MOFCOM has long argued the U.S should correct its trade practices and work with global partners to stabilise global supply chains.
• Chinese authorities should take preemptive measures to prevent the yuan weakening too much, as the U.S. Federal Reserve maintains its hawkish interest rate stance, according to a forex trader in Hong Kong. The issuance of CNY35 billion central bank bills in Hong Kong on Tuesday has limited overseas speculative capital and pushed CNY to CNY7.3 against USD. China’s central bank has several tools to stabilise the currency, while the yuan's outlook also depends on whether China's economic stimulus policies are effective and the real-estate market de-risks. (Source: 21st Century Business Herald)
• Chinese authorities should relax price rules for property developers to accelerate home sales and revitalise cash flow, according to the Securities Times in a commentary. In 2022, nearly 20 cities introduced price limits to prevent developers from maliciously lowering home prices to disrupt the market. However, the housing market now faces oversupply with the declines in real-estate investment, home sales and funds for developers further expanded. Recently, some cities in Sichuan and Fujian provinces encouraged developers to carry out group sales with the preferential prices given to specific groups not recorded as a price drop.