MNI China Press Digest July 3: Liquidity, Property, CRBC

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

Tuesday:

     Liquidity is expected to remain at a reasonable and sufficient level in

July, but it is necessary to be aware of uncertainties on money supply, China

Securities Journal reported, citing an anonymous expert. A large number of

liquidity facilities of the PBOC will mature at the beginning of the month,

including CNY510 billion reverse repos maturing this week, said the newspaper.

That said, the net drain of funds may lower the impact of RRR cuts on short-term

liquidity, the newspaper noted. July's large tax payment in the middle of the

month may also tighten the money supply, the newspaper. 

     The total sales of the top 100 real estate enterprises reached about CNY4.6

trillion in the first six months, marking a 36.5% year-on-year growth, reported

Shanghai Securities News. 25 real estate enterprises reported sales of over

CNY50 billion in the first half of the year and are expected to pass the CNY100

billion threshold by the end of the year, said the newspaper. Real estate

enterprises accelerated inventory turnover and lowered prices to increase the

sales in the second quarter, making the highest monthly sales so far, the

newspaper noted. The concentration ratio of real estate industry rose

significantly; that said, market resources and market shares will be dominated

by the big real estate brands, the newspaper added.

     Banks will establish financial asset investment companies to implement

debt-to-equity swaps, according to a new series of regulatory measures published

by China Banking Regulatory Commission (CBRC), reported Financial News.

Financial asset investment companies are allowed to channel funds through

financial bonds, bond repurchases and interbank borrowing, said the newspaper.

The credit risk weight of the single debt-to-equity swap programme will be 150%,

aligned with the standard of four major assets management companies. After the

PBOC released CNY500 billion to support the debt-to-equity swap programme on

June 24, these new regulatory measures will further expand sources of capital

and ease capital pressure, noted the newspaper.

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

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

[TOPICS: M$A$$$,M$Q$$$,MBQ$$$]