MNI China Press Digest Dec 15: Housing, Consumption, Tourism

Highlights from Chinese press reports on Friday:

• Beijing and Shanghai have rolled out a fresh round of housing stimulus, including lower down payment ratios and extension of deadlines for mortgage repayments. The down payment for first-time home buyers was cut to 30% from the previous 35-40%, and second-home deposits were cut to 40-50% from the previous 50-80%. The two major cities' abandonment of strict policies will likely boost transactions and stabilise house prices, said Chen Wenjing, market research director at China Index Academy. The mortgage rates in both cities for first homes were reduced by 45 bps to as low as 4.1%, and the maximum loan period in Beijing was extended to 30 years from 25 years. (Source: Yicai)
• China should promote large-scale equipment upgrades and replacement of consumer goods to expand domestic demand, said Zhang Yongjun, economist at the China Center for International Economic Exchange. China should boost consumption of new energy vehicles, green building materials and smart home appliances, especially in rural areas. It is necessary to create conditions for consumption upgrades, such as building more charging piles for electric cars in small cities, towns and the countryside. (Source: 21st Century Business Herald)
• Chinese residents have made 3.67 billion domestic trips in the first three quarters, with tourism revenue reaching CNY3.7 trillion, rising 114%, said Du Jiang, vice minister at culture and tourism. The number of commercial performances and revenues grew over 121% and 84% over Jan-Sep when compared to the same period in 2019. China is also set to launch an inbound tourism promotion plan to provide visitors with high-quality tourism products and services, the ministry said. (Source: Securities Daily)