MNI China Press Digest June 16: SOEs, Industrials, Consumption

Highlights from Chinese press reports on Friday:

• The Government will encourage state-owned enterprises to use capital markets to improve competitiveness, enhance allocation of resources and achieve high-quality development, according to a notice from the State-owned Assets Supervision and Administration Commission. The notice said SOEs should use mergers and acquisitions to enhance business models and asset value. Investors are expecting SOEs to focus M&A activity on industrial integration of strategic emerging industries, according to one analyst. (Source: Securities Daily)
• Industrial firms linked to the real estate sector will continue facing pressure in H2, according to industry analysts interviewed by the 21st Century Herald. Upstream companies will be most impacted, especially steel, cement and glass, according to Zhou Maohua, a macro researcher at China Everbright Bank. Wang Guoqing, director of the Lange Iron and Steel Research Center, said hot and rainy weather over the summer will impact steel firms and hamper construction projects. The economy’s insufficient demand remained the concern for the current industrial recovery, the Herald said. (Source: 21st Century Herald)
• The Ministry of Commerce (MOFCOM) will coordinate policy support for home appliance consumption, according to MOFCOM Spokesperson Shu Jueting. Speaking at a recent press conference, Shu said local governments planned to invest over CNY2.5 billion to promote consumption, with a focus on rural households replacing and upgrading older appliances. Nationwide, officials are planning 300 large-scale promotion activities and will make efforts to upgrade the after sales service industry. Shu added consumers that upgrade to newer appliances will contribute to the green-energy transition. (Source: MOFCOM website)