MNI China Press Digest July 11: Property, Low Inflation, NDRC

Highlights from Chinese press reports on Tuesday:

• Authorities have extended 16 property-sector support measures introduced last November until the end of 2024, according to a notice on the People's Bank of China website. Analysts interviewed by Yicai said the real-estate sector will benefit from reduced financial pressure, allowing banks to lend more due to reduced risk exposure. Wang Qing, chief macro analyst at Dongfang Securities, predicted the sector could stabilise and achieve a soft landing with a continuation of support measures, which include extension on loan repayments. (Source: Yicai)
• China should adopt loose monetary policy and proactive fiscal policy to promote economic recovery and tackle low inflation, wrote Ming Ming, chief economist at CITIC Securities in a commentary. CPI came in at 0% y/y in June as low pork and vegetable prices, and weak recovery in consumer goods amid rising precautionary savings weigh on consumer prices. Policymakers should take targeted measures to improve market expectations, including increasing consumers’ disposable income and offering refinancing tools, tax and fee reductions to businesses. While monetary policy should meet credit needs and maintain stable liquidity while avoiding liquidity traps, said Ming. (Source: 21st Century Business Herald)
• The National Development and Reform Commission will promote macro policies to support the private sector's recovery, following an exchange session between private firm chiefs and Zheng Shanjie, director at the NDRC. Zheng said the NDRC in future would coordinate with other departments to create a strong policy environment for private enterprises to develop, and continue engaging with, the sector to better understand concerns. Private company leaders from different sectors were invited including Baidu Group and Longji Green Energy. (Source: 21st Century Herald)