MNI China Press Digest Jan 19: MLF, Property, Tourism

Highlights from Chinese press reports on Monday:

• The People's Bank of China's MLF net investment of CNY1 billion this month was less than market expectations and indicates policymakers want to prevent capital arbitrage, according to Bruce Pang, chief China economist at Jones Lang LaSalle. Banks could still lower the LPR in the short term as market interest rates are lowered under central bank guidance, Pang added. Wang Qing, chief macro analyst of Oriental Jincheng said the MLF injection along with issuance of government bonds would help diffuse local debt risks. (Source: Yicai)
• China’s home sales are expected to gradually recover in 2024 following the Spring Festival's poor performance, according to industry insiders. A major real-estate company saw average daily sales of less than CNY300 million versus CNY400 million in 2023, while another firm said overall performance was only 60% of last year, and believed China’s large increase in tourism this year had diverted attention away from home buying. According to the China Index Research Institute, the average daily transaction of new homes in 25 representative cities fell 27% versus last year’s festival. (Source: Yicai)
• Chinese domestic tourists spent CNY632 billion on travel during the Spring Festival, up 47.3% y/y, and an increase of 7.7% on 2019 levels, according to calculations by the Ministry of Culture and Tourism. Tourists made 474 million trips during the Spring Festival, rising 34.3% y/y, and up 19.0% versus 2019. Red tourism was a hot spot, with the First Memorial Hall of the Communist Party of China and Zhou Enlai’s former residence in Jiangsu receiving large crowds. (Source: Yicai)