MNI China Press Digest Dec 7: Yuan Bonds, Real Estate, IPOs

Highlights from Chinese press reports on Thursday:

• Overseas institutions were net buyers of Chinese bonds for nine consecutive months, according to Securities Daily. Cumulative net foreign purchases over 2023 reached nearly CNY1 trillion, with October alone exceeding CNY200 billion. The amount of debt held by foreign investors has maintained rapid growth since Q3, with an increase of about CNY40 billion in October. The volume will likely continue to increase through November by as much as CNY250 billion.
• Six state-owned major banks recently held talks with real-estate developers on the implementation of funding support, according to Yicai. Most banks had committed to equal treatment for private- and state-owned developers, not withdrawing loans for firms with normal operations and actively supporting affordable housing, and supply-side reform of real-estate finance, the news agency said. Anxin Securities Chief Economist Gao Shanwen said the market will monitor leading real-estate developers to see whether fundraising under market-oriented conditions resumes.
• Local governments including Henan, Sichuan and Anhui province have proposed cash rewards up to CNY40 million for companies to list publically to drive regional economic development with greater output value, tax revenue and employment contributions. As of Dec 6, 296 companies have listed in the A-share market during the year, raising CNY345.5 billion. Jiangsu province has the largest number of IPOs at 55, followed by 47 in Guangdong and 41 in Zhejiang. (Source: Securities Daily)