MNI China Press Digest July 27: SOE Reform, CSRC, Car Sales

Highlights from Chinese press reports on Thursday:

• China will deepen SOE reforms in H2 to deliver high-quality development, according to the State-owned Assets Supervision and Administration Commission (SASAC). During a recent seminar, leaders said SASAC will guide SOE investment into infrastructure and industrial projects that are conducive to local economic and social development and have a strong multiplier effect. SOEs will then enhance the resilience of the industrial chain, unleash the vitality of technological innovation and accelerate the green transformation of traditional industries. (Source: Yicai)
• China Securities Regulatory Commission may introduce more abundant financial tools to meet the financing needs of real-estate companies and help resolve debt risks of local-government financing vehicles, said Zhang Jun, chief economist at Galaxy Securities. The politburo meeting this week emphasised the importance of maintaining the stable and healthy development of the real estate market and preventing local-debt risks with a package of debt-resolving plans. The capital market can help alleviate pressure on LGFVs in debt-strapped regions by revitalising outstanding assets via asset securitisation, said Zhang. (Source: 21st Century Business Herald)
• Retail buyers purchased 1,122,000 passenger cars over July 1-23, a 2% increase y/y but 7% fall m/m, according to data released from the Car Passenger Association. Buyers of new energy vehicles (NEVs) purchased 442,000 units, up 23% y/y but declined 2% m/m. According to Yicai, car buyers typically decrease purchases in July, with consumers restricted from visiting stores due to hot weather. The news agency noted authorities maintained strong local stimulus policies and consumers are beginning to buy after ending their wait-and-see approach. (Source: Yicai)