MNI China Press Digest, July 6: Growth, Special Bonds, Housing

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

on Monday:

     China's GDP growth is likely to turn positive in the second quarter as the

industrial and construction sectors rebound, the Securities Daily reported

citing analysts. Zhang Yu, chief analyst at Huachuang Securities, said growth

could reach 2.7% y/y, while Li Chao, chief economist of Zheshang Securities,

pointed to larger net exports in Q2 and forecast growth of 3.3%. The accelerated

export of anti-epidemic materials may push the trade surplus to more than CNY1

trillion in Q2 and be a strong driver of GDP growth. 

     China's local government authorities have issued a total CNY2.23 trillion

of new special bonds in the first half of 2020, a rise of 28% y/y, with 80% of

the funds invested in infrastructure, the Securities Daily reported. The funds

were largely used to support the construction of industrial parks, develop the

medical and health care system, build transportation facilities and renovate old

communities, the newspaper said. China plans to issue CNY3.75 trillion of the

bonds this year. 

     Some Chinese cities where housing and land prices have risen too fast in

the past months may tighten housing regulations in the second half of the year,

the Securities Times said in a commentary. China's real estate market has

returned to the pre-epidemic level, and some housing hotspots have begun to see

heated home sales and high premium rates for land transactions, both of which

are alerts for speculation, the newspaper said. Last week, Hangzhou city

implemented a five-year sales restriction on any housing purchased by high-level

talents, while Dongguan city strengthened the management of housing pre-sales,

the Times said. 

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

--MNI Sydney Bureau; +61 405322399; email: lachlan.colquhoun.ext@marketnews.com

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