MNI China Press Digest May 09: Property, Sentiment, Fertility

Highlights from Chinese press reports on Tuesday:

• China will overhaul real-estate brokerage fee rules for second-hand housing purchases, aimed at lowering cost and increasing demand, according to the Ministry of Housing and Urban Rural Development. Under the new guidelines, transaction parties will negotiate the brokerage fees based on service quality and market conditions, with buyers not required to pay the previous 2.7% industry standard. The ministry said brokerage firms should reasonably reduce fees and introduce a tiered pricing system with the costs shared between buyer and seller. One analyst said the government has to ensure the new rules are successfully implemented in order to become industry consensus. (Source: 21st Century Herald)
• While sentiment among Chinese chief economists declined slightly in April, they still expected the economy to continue recovering steadily, according to Yicai. The Yicai Confidence Index of Chief Economists for April was 51.2, down from 51.6 in March, the news outlet said. Economists forecasted April CPI at 0.41%, PPI at -3.28% and retail sales up by 21.69%. Participants' expectation for the average yuan/dollar rate in 2023 weakened from 6.65 to 6.68. One analyst said the economy faces downside risks with support needed to boost income growth and employment prospects to sustain domestic demand. Economists expect monetary policy to remain loose, with the possibility of lowering the policy interest rates as low.
• China must raise the level of social welfare to reduce the cost of children and boost births and address the declining population, according to an editorial by Yicai. The news outlet said the government must also focus on developing the existing population, which will lead to more high-quality growth and Chinese modernisation. The country’s transition to a domestic consumption and demand growth model depends on addressing demographic quantity and quality issues, Yicai said.