MNI China Press Digest August 08: NDRC, State Council, PMI

Highlights from Chinese press reports on Tuesday:

• The National Development and Reform Commission issued measures to restore and expand consumption in the automobile, real estate and services sector. Local governments are not allowed to add new restrictions on car purchases but can lower the threshold according to local conditions. Local authorities should support the replacement of home appliances, spending on wearable devices and smart products. Extending the operating hours of restaurants and increasing the supply of entertainment, such as art festivals and sports events, are also included. (Source: 21st Century Business Herald)
• China will introduce new counter-cyclical policies accordingly to promote the continuous recovery of the economy, said the State Council executive meeting on Monday. It is necessary to adjust housing policies and introduce city-specified measures conducive to the stable, and healthy development of the real-estate market. Efforts should also be made to stimulate private investment, activate capital markets, create new pillar industries and boost employment, the council said. (Source: Xinhua News Agency)
• Analysts expect China’s PMI index to increase in August and September following announcements by policymakers aimed at revitalising the economy, according to analysts interviewed by 21st Century Herald. According to Wu Chaoming, vice president at the Caixin Research Institute, July’s PMI data was negatively impacted from seasonal factors such as high temperatures and the traditional off-season for industrial production. Wen Tao, an analyst at the China Logistics Information Center, noted factories suffered from a slower economic activity due to July’s high temperatures and rain affecting operations and mobility. (Source: 21st Century Herald)