MNI China Press Digest Feb 28: Growth, Bonds, Property

Highlights from Chinese press reports on Tuesday:

• Shanghai’s economy will grow 5.3% in 2023, with consumption and investment playing an important role in driving high-quality development, according to a report by the Economic Research Institute of the Shanghai Academy of Social Sciences. The report notes the resilience of the local economy in 2022 as reasons to be optimistic about this year's prospects, with statistics showing the financial industry grew 6.1% last year. Service industries achieved a year-on-year growth of 5.3%. The institute recommended more policies to stimulate consumption, lower mortgage rates, and invest in new industries. (Source: 21st Century Herald)
• Local government bond issuance was CNY643.5 billion in January, according to the Ministry of Finance. China Securities News said data for February was also high, with CNY576.1 billion issued so far, including CNY335.753 billion yuan of new special bonds. Analysts interviewed by the paper said it was important to ensure the funds raised were used efficiently, and early issuance will help to stabilise growth this year and provide a backstop for the economy. One economist predicted infrastructure investment in the first quarter would grow at a double-digit rate.
• Second hand property transactions in Shenzhen last week were up 24.4% y/y, indicating upward momentum in the local property market, according to the Securities Times. New-build sales so far in February are up 25% on last month, with some real estate agencies beginning to recruit more staff to deal with increased activity. Although prices have risen 10% off last year's lows, they are still way below the peak. Local insiders told the paper the majority of the increased sales is due to a backlog of eager sellers willing to transact at a knockdown price. Experts said the long term rebound depends on if the economic recovery will lead to improved confidence.