MNI China Press Digest, July 26: Property, Bonds, Employment

     BEIJING (MNI) - The following lists highlights from the Chinese press for

Thursday:

     Over 200 real estate regulatory policies have been implemented in China in

the first half of the year, marking the highest such number in history, Xinhua

News Agency reported. Third- and fourth-tier cities continue to see large rises

in housing prices as these strict policies have been more focused on major

cities, resulting in inventories remaining in smaller cities, Xinhua said,

citing Wang Yeqiang, director of real estate office of China Academy of Social

Sciences. In the second half of the year, local governments should evaluate

land, finance, taxation and real estate laws to tailor long-term policies to

each city, stabilise housing prices and discourage speculative investments,

Xinhua said, citing experts including Zhang Dawei, chief analyst of Centraline

Property.

     Credit bonds will continue to rally in the short term, while government

bonds are expected to be under pressure, reported China Securities Journal. The

"loose money and loose credit" policy combination resulted in marginal benefits

for credit bonds, driving down its yield rate, while the rise of risk preference

pushed the yield rate of government bonds higher, the newspaper said. The loose

credit policy will increase the demand of medium- and low-rated credit bonds,

said Huachuang Securities, according to the Daily. This trend will ease the

downward pressure on economic fundamentals and social financing, leading to

relatively lower values for government bonds, Huachuang Securities added.

     China-U.S. trade tensions have resulted in some uncertainties in China's

employment, but the unemployment rate stayed between 4.8% and 5.1% in the first

half of the year, remaining relatively low, Economic Information Daily reported,

according to a statement from National Development and Reform Commission (NDRC).

New technology and new industry have become the driving force of employment,

said Ha Zengyou, inspector of the employment department of the NDRC, according

to the newspaper. China has great potential in domestic demand, leaving enough

room to cushion external uncertainties, Ha said. China should accelerate the

upgrading of traditional industries and the development of new industries to

provide more high-quality employment opportunities in the second half of the

year, Ha added.

--MNI Beijing Bureau; +86 (10) 8532-5998; email: sherry.qin@marketnews.com

--MNI Beijing Bureau; +86-10-8532-5998; email: beijing@marketnews.com

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