MNI China Press Digest August 28: Tax, Evergrande, Steel

Highlights from Chinese press reports on Monday:

• The Ministry of Finance and the State Taxation Administration announced Sunday it would halve the 0.1% stamp duty on securities transactions from Monday “to invigorate the capital market and boost investor confidence.” The China Securities Regulatory Commission also revealed Sunday it would temporarily tighten the pace of IPOs to prioritise quality listings, further standardise shareholding reduction behaviours and lower margin requirements for investors to buy securities to 80% from 100% starting Sept 8. A-share valuations remain at historic lows, with the Shanghai Composite Index falling by 0.59% to 3064.07 points on Friday, a new low for the year, dropping 10.4% cumulatively from May's high point. (Source: Quanshang China)
• China Evergrande, the world's most-indebted property developer, said on Sunday that its January-June net loss was CNY39.25 billion, while it recorded a revenue of CNY128.18 billion. According to its interim financial report, its condition of liabilities has not improved significantly, with total debt standing at CNY2.39 trillion. The company, which has had trading in its shares suspended since April 1, 2022, said it will resume trading on Monday. Before the suspension, its share price was HKD1.65 per share, with a total market value of HKD21.79 billion. (Source: 21st Century Business Herald)
• China’s iron and steel industry faces insufficient demand recovery, declining profitability and large contradictions in supply and demand, said Chang Guowu, director at the raw material industry department at the Ministry of Industry and Information Technology at a recent press conference. Authorities note the industry has become less efficient this year with low demand and high raw input prices. In a planning document released at the press conference, policymakers proposed to expand consumer steel demand in key areas such as new infrastructure, new urbanisation, rural revitalisation and emerging industries. On the supply side, China will continue to reduce overcapacity through a market-oriented approach to industry consolidation. (Source: 21st Century Herald)