MNI China Press Digest Dec 14: SAFE, Consumption, Property

Highlights from Chinese press reports on Thursday:

• Chinese financial regulators will focus on revitalising inefficient financial resources, as 80% of all loans in China need to be recycled and reinvested every year, said Lu Lei, deputy director at the State Administration of Foreign Exchange. The balance of yuan loans reached CNY236.42 trillion by end-November, according to data from the central bank. The effective revitalisation of these loans can support economic growth, even with smaller increases of new money and credit, said Lu. More credit will support the development of technology, green, inclusive elderly care, and digital finance, while loans to real estate and local government financing vehicles, which have been heavily invested in the past, would decline, said Lu. (Source: 21st Century Business Herald)
• Authorities should enhance the virtuous cycle of consumption and investment, according to Fu Yifu, senior researcher at Xingtu Financial Research Institute. Fu said household spending has recovered slowly, meaning consumption has not driven investment demand which remains imbalanced towards the industrial sector. Hong Tao, vice chairman at the China Society of Consumer Economics, said China must increase household incomes and develop the relationship between consumption and investment. (Source: Securities Daily)
• China’s property sector demand should adjust to reflect changes in population, according to Dong Jianguo, deputy minister at the Ministry of Housing. Speaking at the China Economic Annual Conference, Dong said authorities will address real estate risks by continuing to meet the reasonable financing needs of real-estate enterprises without ownership discrimination to help with short-term cash flow issues. Lin Zechang, director at the Ministry of Finance stated officials needed to improve the quality and efficiency of next year's fiscal efforts to achieve the nation's targets. (Source: Yicai)