MNI China Press Digest Feb 7: Yuan, Red Sea, Real Estate

Highlights from Chinese press reports on Wednesday:

• More overseas long-term capital will buy the yuan should China’s stock market gradually rebound and the Chinese economy maintains a steady recovery, 21st Century Business Herald reported citing market insiders. The yuan strengthened against the rising U.S. dollar index which rebounded to 104.54 on Tuesday, due to the rally in Chinese stocks. Both onshore and offshore yuan regained the 7.2 level against the dollar while the Shanghai Composite Index surged 3.23%. The currency may fluctuate widely within the 6.9-7.3 range this year, as the expected Fed rate cuts in the second half will help ease the external pressure on yuan, said Ming Ming, chief economist of CITIC Securities.
• China’s exporters could face a shortage of containers should the Red Sea crisis continue, according to Chen Youwei, director of Robinson International Freight, adding that current supply was sufficient but decreasing rapidly. The freight industry faces uncertainty from trade protectionism, geopolitical conflicts and El Niño phenomenon, Chen Yuanhan, vice president at Robinson International Freight added. (Source: Yicai)
• All commercial banks must take the initiative to conduct timely reviews of recommended real-estate projects in the “whitelist” and accelerate credit approval to ensure that all reasonable financing needs are met, according to a statement by the National Administration of Financial Regulation on its website. Local financial regulatory bureaus must set up a special work team to proactively strengthen coordination with local governments and housing departments to promote the stable and healthy development of the real-estate market.