MNI China Press Digest Feb 01: PMI, Prices, Property

Highlights from Chinese press reports on Thursday:

• The government should use investment to boost the economy after January’s PMI reading of 49.2 showed domestic demand remained insufficient, according to Zhang Liqun, a special analyst at the China Federation of Logistics and Purchasing. Going forwards, the PMI will remain moderate as domestic demand recovers, but the Spring Festival and uneven trade patterns will cause fluctuations, according to Zhou Maohua, macro researcher at China Everbright Bank. Manufacturers will see energy and industrial raw material supply chains impacted by geographical conflicts, causing uncertainty, Zhou added. (Source: 21st Century Herald)
• Authorities are carefully monitoring price fluctuations during the Spring Festival season and taking action to avoid risks that may affect the market order, according to Pu Chun, deputy director of the State Administration for Market Regulation. Pu, speaking at a press conference, said authorities were watching prices of hotel and restaurants, transportation and logistics, and food. The administration was taking action to stabilize prices, Pu added. (Source: 21st Century Herald)
• Local governments including Chongqing and Nanchang city are providing local banks with a “whitelist” of property projects capable of receiving financing support. Chongqing has sorted out the first batch of 314 real estate projects with financing needs of about CNY83 billion and recommended them to 28 major banks in the city. Banks will shorten the credit approval time for projects with guaranteed repayment sources, and flexibly offer new loans to projects that have temporary financial difficulties but can maintain a balance of funds, said Liu Shui, research head of China Index Academy. More cities are expected to follow suit to ease the tightening of property loans and expand real-estate investment. (Source: Shanghai Securities News)