MNI China Press Digest Aug 8: Exports, Yuan, Property

Highlights from Chinese press reports on Thursday:

• China’s export growth could slow down in H2 following the JPMorgan Global Manufacturing PMI, an external demand indicator, dropping to 49.7% in July from 50.8 in June, Feng Lin, director of research at Orient Jincheng, told 21st Century Business Herald. However, Feng expects August to show strong momentum due to low base effects. The EU increasing tariffs on China’s electric automobiles had not impacted exports, with worldwide shipments reaching 553,000 vehicles in July, up 12.9% m/m, Feng continued.
• The yuan will likely continue rebounding in the coming months as international capital seeks safe havens amid violent fluctuations in global financial markets, Yicai.com reported, citing Wang Youxin, senior researcher at Bank of China Research Institute. The U.S. could increase tariffs during the November election causing more volatility and worsening the already complex external environment, analysts from Huatai Futures said. However, exporters who delayed foreign exchange settlement said the yuan is likely to depreciate during the upcoming import/export peak season.
• Tier-one city Shenzhen has begun acquiring real-estate stock for conversion to affordable housing, with Beijing and Shanghai expected to follow soon, The Paper reported, citing Yan Yuejin, vice president at the E-house China Research Institution. City officials are prioritising entirely unsold apartment blocks with units under 65 square metres and located close to public transportation and living amenities. Yan noted first-tier cities have capacity to digest housing inventory given the large population inflow.