MNI China Press Digest June 2: Real Estate, Futures, Housing

Highlights from Chinese press reports on Friday:

• Further housing support will stabilise the wider economic rebound, according to Wu Chaoming, vice president at the Financial Information Research Institute. Wu expects buyers to increase annual sales this year, but the sector’s overall recovery will remain tepid. Leaders in Beijing should implement policies to stabilise land and house prices in a timely manner, as the real-estate recovery is important to the wider rebound. On other topics, Wu said industrial production will remain soft in the coming months, with private investment sluggish and a slowdown in exports. (Source: 21st Century Herald)
• China will expand the scope of its futures market to provide foreign investors more hedging tools and diversified investment options, according to Fang Xinghai, vice chairman at the China Securities Regulatory Commission (CSRC). In a recent speech, Fang said Chinese firms will be supported to issue depositary receipts in the European market. China remains committed to high-quality institutional opening up of the capital market and will optimise the connect programs between the mainland and Hong Kong. (Source: Yicai)
• Authorities should make efforts to boost demand in the real-estate sector, following last year's focus on the supply side, according to Yao Jingyuan, researcher at the Counsellor Office of the State Council. Yao said at a recent conference China’s economy faced insufficient demand with real estate being a major drag on growth prospects. Wei Chenyang, secretary-general at the Wudaokou Global Real Estate Finance Forum, said the Government should expand the use of REITs to revitalise stock valuations and increase liquidity. (Source 21st Century Herald)