March 11, 2024 01:05 GMT
MNI China Press Digest Mar 11:Real Estate, PBOC, Fiscal Policy
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MNI picks keys stories from today's China press
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Highlights from Chinese press reports on Monday:
- China’s real-estate sector still has great potential, supported by urbanisation development and the demand for renewal of existing housing, said Ni Hong, minister of housing and urban-rural development at a press conference on Saturday. Authorities should support the reasonable financing needs of state-owned and private developers equally, and promote bankruptcy and reorganisation of those seriously insolvent without operating capabilities, Ning said. Municipal governments should optimise housing policies accordingly, he added, restating the "houses are for living in, not for speculation" principle. (Source: Securities Times)
- The People’s Bank of China will improve the stability of the financial market and the efficiency of monetary policy transmission, and promote a higher level of two-way opening up of the market, according to an article published on its website Sunday. It will stabilise real-estate bond financing and steadily resolve debt risks of local government financing vehicles. It will also enrich market-based default resolutions, such as debt swap, extension and repurchase, as well as facilitating judicial relief.
- China’s fiscal policy will increase intensity in 2024 despite a deficit rate of 3% versus the adjusted 3.8% in 2023, according to Guan Tao, former director at the State Administration of Foreign Exchange. Guan noted policymakers planned to issue CNY1 trillion of long-term special treasury bonds, CNY3.9 trillion of special bonds, and CNY500 billion from last years’ CNY1 trillion disaster relief bonds, with total government expenditure reaching CNY28.5 trillion this year, up CNY1.1 trillion from 2023. With some analysts doubting China’s official 2023 GDP data, Guan said energy consumption grew by 6.2% last year, a strong indication that 5.2% GDP growth was accurate. (Source: Yicai)
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