MNI China Press Digest June 12: Upgrading, Green Finance, Cars

Highlights from Chinese press reports on Monday:

• Chinese firms should accelerate industrial transformation and upgrades to achieve high-quality development, according to Guan Qingyou, vice president at the China Private Economy Research Association. Guan said policymakers should encourage firms to become more resilient, improve their total factor productivity and help the transition to dual carbon and digitalisation. The government's green-transition targets can drive economic growth in future and provide investment opportunity for firms. Enterprises should also digitalise their business to improve production efficiency and reduce energy consumption, Guan said.
• China’s finance industry must reforms to better support the green transition, according to Li Yang, chairman at the National Finance and Development Laboratory. Li said China’s green transition faces a large funding gap as the finance industry only supports “pure green” projects such as sustainable energy and electric vehicles. In the future, policymakers must ensure finance makes funding available to high-carbon firms and projects transitioning to low carbon. Regulators also need to improve market measurement and pricing mechanisms to become more efficient. (Source: 21st Century Herald)
• China’s domestic carmakers sold sold 717,000 New Energy Vehicles (NEV) in May, up 60.2% y/y and reaching 30.1% of market share, according to data from China Association of Automobile Manufacturers. Buyers are likely to buy more cars in H2, typically the peak season, as government stimulus policies take effect, according to a note from Dongguan Securities. Additionally, China will boost its green home and smart-appliance industry by speeding up the certification process, and encouraging buyers to purchase, according to a notice from the Ministry of Commerce. (Source: Yicai)