MNI China Press Digest July 31: NDRC, Capital Market, Property

Highlights from Chinese press reports on Thursday:

• Policymakers will accelerate the use of investment funds to increase the country’s physical workload to deal with insufficient domestic demand, hidden risks and a complex external environment, according to the National Development and Reform Commission. At a recent NDRC meeting, leaders said policy support in future will focus on expanding consumption and investment and reactivating private investment while utilising the guiding role of government investment. China will promote self-reliance in high-level science and technology and promote traditional industry upgrading. (Source: 21st Century)
• Authorities should focus on strengthening investment by developing capital market, following the Politburo meeting’s latest call to “activate the capital market and boost investor confidence”, said China Securities Journal in a front-page commentary. The A-share market still faces insufficient medium- and long-term funds, while the asset pricing and management capabilities of professional institutions needs improvement. Authorities should continue to relax the proportion and scope of various medium- and long-term funds entering the market and increase the weight of A-shares included in international indexes to attract overseas funds. (Source: China Securities Journal)
• First-tier cities will release detailed measures soon to prop up the property market in response to top policymakers’ call to adjust housing policies. Tier-one cities including Beijing, Shenzhen and Guangzhou said during the weekend they will support home purchases to meet essential dwelling demand and needs for better housing. Analysts expect tier-one cities may adopt “one district one policy” rules to relax local housing markets gradually as the principle of “housing is for living, not for speculation” remains. (Source: Yicai)