MNI China Press Digest Feb 28: Housing, SOE Reform, China-U.S.

Highlights from Chinese press reports on Wednesday:

• Local governments are required to formulate annual housing development plans for 2024 and 2025 which should scientifically arrange land supply based on housing demand to prevent high volatility, according to a statement on the website of the Ministry of Housing and Urban-Rural Development. The plans should clarify the annual supply of housing and land, and calculate the reasonable financing needs of real-estate projects. Local authorities should also plan for 2026-2023 in advance.
• Authorities should implement SOE reforms which optimise the layout of state capital and bring large positive externalities such as AI, according to Wang Hongzhi, deputy director of the State-owned Assets Commission. Speaking at a meeting to discuss SOE development in 2024, Wang said they need reforms to promote listing and financing, compress management levels, increase emerging industry investment, and optimise organisational structure. In 2023, SOEs invested CNY2.18 trillion in emerging industries, accounting for 35.2% of total SOE investment, official data showed. (Source: Securities Daily)
• Passenger airlines between China and the U.S. are expected to increase to about 100 weekly round-trip. After the U.S. allowed Chinese carriers to boost weekly round-trip passenger flights to 50 from the current 35 starting on March 31, China may follow suit based on the principle of reciprocity. About 150 weekly round-trip passenger flights were allowed by each side before restrictions were imposed in early 2020 due to the COVID-19 pandemic. The number of flights between the two countries exceeded 520 during Feb 1-26, an increase of nearly three times compared with the same period in 2023, but it only recovered to about 22% of the same period in 2019. (Source: Caixin)