MNI China Press Digest, Aug 26: NPL, Fiscal Policy, Property

The following lists highlights from Chinese press reports on Wednesday:

Chinese regulators are increasing efforts to deal with banks' non-performing loans for the rest of the year as data and official statements indicated considerable future risks, the Economic Information Daily reported. The efforts come as the so-called "Big Four" SOE asset management companies said they would acquire more non-performing assets. Many local AMCs have started a new round of capital increases and expanded their financing channels, preparing for the disposal of non-performing assets, the newspaper said.

China needs to place more emphasis on proactive fiscal policies to boost demand, ease employment pressure and solidify the economic recovery, the China Securities Journal said in a commentary. Flexible monetary policies need to be more targeted to prevent looser credit from disrupting the market, the Journal said. Fiscal policies can be ramped up given that more debt has been issued and more funds transferred to local governments. Spending can also be quickly directed to supporting key industries, boosting investments and employment, according to the Journal's commentary.

China's property developers need to boost sales after a poor-performing 1H when they reached less than 40% of their targets, reports the China Securities Journal. Real estate companies should focus on outstanding sales to manage their cash flow and avoid blind expansion, the Journal quoted Li Jianqiao, a research director from the China Index Academy. Companies with a high leverage ratio and singular financing options will endure pressure, Li said.