MNI China Press Digest July 1: FDI, PMI, Summer Travel

Highlights from Chinese press reports on Monday:

• China is planning a series of new measures to further encourage foreign investment, including reducing access restrictions and launching a new round of pilot measures to expand the opening up of the service industry, China Securities Journal reported. Opening-up measures could be introduced in the medical and telecom sectors, said Xiao Benhua, deputy director of the Free Trade Zone Research Institute of Shanghai Lixin University. The National Development and Reform Commission is also accelerating an updated catalog of industries encouraging foreign investment, with advanced manufacturing, modern service, high-tech, energy conservation and environmental protection to be highlighted, the newspaper said.
• The government should significantly increase countercyclical policies and boost investment to drive up orders and production, following June’s PMI reading of 49.5, according to Zhang Liqun, an analyst at the China Federation of Logistics and Purchasing. Wang Qing, chief macro analyst of Golden Credit Rating, said the economic recovery was not solid given the real estate sector's ongoing adjustment. Authorities need to take monetary policy measures in Q3, and boost support for the property sector in H2 to improve the situation, Wang added. (Source: Yicai)
• China air passenger volume will grow 7.0% y/y this July and August, 12.2% higher than 2019 levels, according to estimates from Flight Steward, a booking service. Passenger flights are expected to reach 994,000, up 4.1% over 2023 and 6.1% over 2019. However, average domestic economy class ticket prices will hit 1,010 yuan, down 3% y/y. Inbound passengers will rise 100% y/y, with travellers from the 14 countries recently given China visa-free access increasing 150% y/y. (Source: Yicai)