MNI China Press Digest July 25: Real Estate, A Shares, SMEs

Highlights from Chinese press reports on Tuesday:

• Authorities are expected to align more closely real-estate supply side policies with demand following the politburo’s recent meeting, according to Zhou Tao, deputy dean at the School of Real Estate of Chongqing University. Zhou said China’s cities had accumulated inefficiently used property stock as the country rapidly urbanised. Zhou expected policymakers in future to address structural and regional supply and demand imbalances through the revitalisation of existing stock space resources. Wang Yeqiang, director at the Real Estate Special Committee of the China Urban Economics Association said policymakers will address market weakness through supporting urban village transformation and emergency and dual-use public infrastructure construction. (Source: 21st Century Herald)
• The recent politburo meeting signalled policy support to boost the A-share market in response to low stock valuations and investor confidence, according Yicai. The news agency noted the politburo’s rare use of the term "activate capital market and boost investor confidence" struck a different tone to previous “maintain stable operation of the capital market”. Ming Ming, chief economist at CITIC Securities, said the market expects policy support to boost the attractiveness of the capital market and guide the increase of direct financing. (Source: Yicai)
• China is set to allow qualified high-tech small and medium-sized enterprises in Tianjin, Shanghai and 12 other provinces to borrow foreign debts independently within a limit of no more than USD10 million to further support their technological innovation, according to a draft document by the State Administration of Foreign Exchange seeking public comments. Qualified high-tech SMEs in other regions can borrow up to USD5 million. (Source: SAFE website)