MNI China Press Digest Aug 5: Services, Urbanisation, Yuan

Highlights from Chinese press reports on Monday:

• China will promote unmanned retail stores, self-collection cabinets, e-sports, social e-commerce and live broadcast e-commerce to boost services consumption, a State Council report has said. Officials proposed 20 tasks based on improving quality and improve consumption. The measures can exploit new growth areas and help provide consumers with a high-quality and personal experience, said Fu Yifu, senior researcher at Xingtu Financial Research Institute. People are focused on hobbies and interests more than before, which supports cultural and tourism consumption, Fu added.
• China aims to increase its urbanisation rate to about 70% over the next five years, up from the current 66%, China Times reported, citing the State Council’s recent five-year urbanisation plan. Zheng Bei, deputy director at the National Development and Reform Commission said a 1 percentage point increase in urbanisation can create significant investment demand. The plan proposed improving options for migrant workers to settle in cities and be entitled to public services at residential location instead of Hukou registration.
• The yuan will fluctuate between 7.1-7.3 against the U.S. dollar as central bank rate cuts and increased fiscal policy boost domestic demand, and authorities employ currency management tools, Securities Daily reported citing Wen Bin, chief economist at China Minsheng Bank. Developed economies easing cycle and recent yen strengthening has supported the yuan, said Fan Ruoying, researcher at Bank of China Research Institute. The onshore and offshore yuan increased by 0.72% and 1.65% against the dollar in the past two weeks.