MNI China Press Digest March 5: Yuan Derivatives, Housing Curb

The following lists highlights from Chinese press reports on Friday:

• China should accelerate the introduction of yuan derivatives starting with exchange rate futures against the dollar to facilitate global and domestic capital allocations, the Security Times reported on Friday citing a proposal by Tu Guangshao, the former president of state-owned investment bank CICC and Jiang Yang, the former vice chairman of the China Securities Regulatory Commission. The Shanghai foreign exchange market should gradually have on-the-go forwards, futures, options, swaps and other financial instruments to meet the risk management needs of investors and strengthen its role as a global hub for the yuan, Tu said. Tu, a member of the advisory body CPPCC, also proposed an international commodity pricing center, the Times said.
• The average mortgage rate for first-time buyers in 41 key cities in China increased by 4 basis points in February from the previous month, following a crackdown on illegal lending to the property market, the Economic Information Daily reported. Mortgage rates are likely to rise further and the real estate credit environment is likely to continue to tighten, the newspaper said citing Xu Xiaole, chief Market Analyst of Shell Research Institute. The use of housing for speculation remains relatively strong, the Daily reported citing Guo Shuqing, chairman of the Banking and Insurance Regulatory Commission.