MNI China Press Digest June 6: NIM, Car Sales, Carbon

Highlights from Chinese press reports on Wednesday:

• The net interest margins of commercial banks may gradually approach the bottom range after the average fell to a historic low of 1.54% in Q1, 21st Century Business Herald reported citing analysts. The 15bp fall in Q1 had narrowed from the 17bp decline over the same period last year, as many banks reduced deposit-side interest expenses by lowering rates on three- and five-year deposit products, while increasing lending to SMEs, green and technology sectors to boost loan interest income, the newspaper said citing an unnamed banker. However, a source from a city commercial bank told the Herald that net interest margins may face further pressure in the near term, as they predicted an average 35-40bp decline in housing mortgage rates.
• Carmakers sold 1.7 million passenger vehicles in May, down 3% y/y but up 10% m/m, according to China Passenger Car Association preliminary statistics. New energy vehicles retailed 790,000 units, up 36% y/y and 17% m/m, with merchants selling well during the May holiday, when several major car shows were held. Looking ahead, car sales should remain stable over the summer off-season, the association said. (Source: Yicai)
• Authorities’ plans for a national carbon footprint accounting system will help Chinese firms gain international recognition and transform the country’s production pattern, according to Liu Jiaqi, an energy specialist from Liaoning University. Wu Qi, a senior researcher at Pangu Think Tank, said financial institutions can now accurately assess firms’ carbon emissions and promote innovative green financial services, and drive the low-carbon transformation of intensive industries like steel and transportation. (Source: Securities Daily)