MNI China Press Digest Jan 15: GDP, Stock Market, Property

Highlights from Chinese press reports on Monday:

• The recovery of the real-estate market and whether authorities can implement a series of policies for developers will form the key to reaching 5% GDP growth in 2024, said Lian Ping, chairman at the China Chief Economist Forum. Possible cuts to both the reserve requirements and interest rates, the likely rebound of both CPI and PPI, the stabilisation of consumption and exports, alongside the dual drivers of infrastructure and manufacturing investment, will help boost the economy to its growth target, said Lian. Sheng Songcheng, former central bank official, said the housing sector may show an L-shaped recovery and it is impossible for China to stimulate growth significantly through real estate in future. (Source: 21st Century Business Herald)
• Authorities will likely introduce lock-in periods, establish value concepts and optimise market environments to boost counter-cyclical investing, according to Tian Lihui, dean at Nankai University's Institute of Financial Development. Tian’s comments follow an announcement by Lin Xiaozheng, deputy director at the China Securities Regulatory Commission, that authorities will formulate an incentive and restraint mechanism to support counter-cyclical investing. Wei Fengchun, chief economist at Chuangjin Hexin Fund, said counter-cyclical investing will be encouraged in new consumption and technology sectors in accordance with China's strategic plans. (Source: Securities Daily)
• China’s property sector will benefit from improved coordination between banks, regulators and developers following the Ministry of Housing's recently issued "Notice on Establishing an Urban Real Estate Financing Coordination Mechanism," according to an Yicai editorial. The measures will allow good developers access to a green channel for credit extension, while developers with temporary difficulties will not see funds blindly withdrawn. For the system to work, real-estate companies must truthfully report their assets, liabilities and sales operations in accordance with the law, Yicai said.