MNI China Press Digest Apr 13: Special Bonds, Prpty, CNY Assets

The following lists highlights from Chinese press reports on Wednesday:

• China will continue to accelerate the sales of infrastructure-back local government special bonds and ensure the issuance of all CNY3.65 trillion of such bonds by the end of September, Shanghai Securities News reported citing Vice Minister of Finance Xu Hongcai at a Tuesday briefing. About CNY1.25 trillion of such bonds were issued as of end-March, and local governments have overcome difficulties to kick off investment projects despite the epidemic, with 75% of the projects funded by the bond having started construction so far, the newspaper said citing Xu. There are 71,000 projects in reserve awaiting to be used, covering the areas of urban pipeline network, water conservancy, information infrastructure, grain warehousing and logistics facilities, the newspaper said citing officials.
• The scope of China's effort to bail out the property market has expanded with 14 more cities having loosened their housing policies in April, mainly by relaxing restrictions on purchase, loan and sales as well as lowering down payment ratio and mortgage interest rates, the Securities Times reported. Cities including some housing hotspots like Nanjing started to relax and stimulate demand, and this could be followed by more second-tier big cities with greater downward pressure, the newspaper said citing Ding Zuyu, executive director of Shanghai E-House Real Estate Research Institute. The market rebound in bigger cities will gradually transmit to third- and fourth-tier cities, said Ding. More than 60 cities have issued more than 100 real estate-related policies to prop up the market in Q1, the newspaper added.
• Some of the world’s largest asset management institutions are buying Chinese assets despite recent outbreaks of the epidemic, eyeing on China’s ample room for increased fiscal spending and monetary easing when other economies' growth momentum weakens on U.S. rate hikes and geopolitical conflicts, the 21st Century Business Herald reported citing an unidentified Wall Street hedge fund manager. Due to the recent low valuation of Chinese assets, more global asset managers are bottom-hunting boldly, or adjusting positions by selling high and repurchasing low, the newspaper said. Currently, the proportions of foreign capital in China’s bond and stock markets only accounts for 3% and 5%, the newspaper added.