MNI China Press Digest Feb 21: Reforms, Developers, CSRC

Highlights from Chinese press reports on Wednesday:

• China must reform its economy to stabilise exports while expanding household income as a percentage of GDP, according to Liu Xinghua, director of the China National Innovation and Development Strategy Research Association. China was entering a crucial seven years where it must maintain reasonable economic growth to achieve Beijing's high quality development goals. Liu said working class people would benefit from a better income distribution system and reduced tax burden. Officials need to improve basic guarantees in housing, medical, elderly care, and education. Liu expected the national growth target in 2024 at around 5% despite the 31 provinces setting their weighted average GDP target at 5.4%.
• China’s efforts to improve developer financing has made progress, with 214 cities issuing "white lists" of real estate projects eligible for financing support covering 5,349 projects, according to the Ministry of Housing and Urban-Rural Development. The move follows authorities' announcement in January of the urban real-estate financing coordination mechanism. In future, commercial banks must report white-list projects they rejected support for to the authorities, and relevant parties must work together to resolve outstanding issues.
• China Securities Regulatory Commission Chairman Wu Qing focused on stabilising market confidence and promoting long term systems at the regulator's recent symposium, according to experts in attendance. Peng Wensheng, chief economist at the CICC Research Institute, said attendees agreed the market registration system needed reform to protect small and medium investors better and strengthen anti-fraud supervision. Wu Xiaoqiu, dean of the China Capital Market Research Institute, also in attendance, noted the central bank must take measures to stabilise the capital market as regulators have the tools but no funds.