MNI China Press Digest, June 28: Property, GDP, Foreign Debt

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

Thursday:

     Policies that monetise shantytown renovation should gradually fade out as

real estate de-stocking is completed, said Yin Zhongli, director of real estate

research in the Chinese Academy of Social Science, in a commentary in 21st

Century Business Herald. Subsidies given to shantytown residents stimulated the

real estate market when it was implemented in 2014. However, the excessive

growth of housing prices in third- and fourth-tier cities reveals the negative

impact of the de-stocking policy, Yin said. Increasing land reserves outweigh

the outflow of population in third- and fourth-tier cities, Yin added.

     Domestic demand will dominate China's economic trends in the second half of

the year, reported China Securities Journal, citing experts. Service products

accounted for a larger portion of overall expenditure in May, noted Zhang Ming,

chief economist of Ping An Securities, according to the Journal. Infrastructure

investment is likely to bottom out with the support of local government bonds

and increasing fiscal expenditure in the third quarter, said Bian Quanshui,

chief analyst of Sinolink Securities. Manufacturing will be an important pillar

of fixed asset investment as the accumulated growth of manufacturing investment

reached 5.2% from the January to May period, with a year-to-year growth of 0.4%,

said Lu Zhengwei, chief economist of Industrial Bank, according to the Journal.

     The National Development and Reform Commission (NDRC) will regulate foreign

debt taken by real estate enterprises for domestic investment, reported Shanghai

Securities News. NDRC will standardize relative requirements for corporate debt

and fund uses to prevent foreign debt risks, said an anonymous manager of NDRC,

according to the newspaper. NDRC will control the total quantity of foreign debt

and then improve its structure, noted the manager, according to the newspaper.

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

--MNI Beijing Bureau; +86-10-8532-5998; email: beijing@marketnews.com

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