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MNI China Press Digest Mar 3: Buy A-Shares, Cmdty, Propty

MNI (Singapore)

The following lists highlights from Chinese press reports on Thursday:

  • Many European and American family offices are increasing their holdings of A-shares, taking yuan assets as an important safe-haven investment tool, the 21st Century Business Herald reported citing analysts. The low valuation of A-shares, along with China’s stable economic fundamentals, strong yuan and loose monetary policy amid the Russia-Ukraine conflict are attracting more global investors, the newspaper said citing unnamed sources. The proportion of yuan assets invested by many family offices in Europe and the U.S. is only 3-4%, which may rise to 8-10% with the risk-averse nature of yuan assets increasing, the newspaper said.
  • China should pay close attention to the pressure of rising material costs in manufacturing and insufficient consumption amid soaring global commodity prices, said the 21st Century Business Herald in an editorial. It is however capable of ensuring food and energy security, the newspaper said. Global oil and gas prices may continue to rise after setting new records if geopolitical risks persist, as global crude oil inventories are already at very low levels and supply capacity is limited, the newspaper said. The risk of global recession will increase as major economies may encounter stagflation, the newspaper said.
  • The housing market is likely to see a significant rebound in March and April, especially in first- and second-tier cities amid looser housing regulations to boost home sales, the Securities Daily reported citing Zhang Dawei, chief Analyst of Centaline Property. Nearly 50 cities across the country have released different degrees of easing policies, with 15 cities lowering down payment ratio, the newspaper said. Lowering down payment is a substantive relaxation to stimulate the market in third- and fourth-tier cities, and bigger cities may follow, the newspaper said citing Yan Yuejin, director of E-house China Research and Development Institution.

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