MNI China Press Digest May 18: SME Support, House Prices, SAFE

Highlights from Chinese press reports on Thursday:

• Shanghai unveiled a package of policies aimed at the high-quality development of the city's SMEs, according to Wu Jincheng, director of the Shanghai Economic and Information Technology Commission. Speaking at a press conference, Wu said more small tech and innovative firms would receive rewards and subsidies as the thresholds for existing support would be lowered. SMEs involved in green transition industries would benefit from a new R&D funding programme and the government would induct 200 high-level SME professionals into a new training scheme. The government would also increase its share of procurement sourcing from SMEs to over 40% by the end of 2023, Wu said. (Source: Yicai)
• China’s two- and three-tier cities need further measures to boost confidence in the housing market, as prices decline in April, according to analysts interviewed by the Securities Daily. One analyst noted April’s data showed first-tier cities had maintained upward momentum from Q1, but second- and third-tier cities had slowed. Prices of new builds in tier-one cities increased by 2% y/y, a 0.3pp m/m gain, while second-hand properties were up 0.9% y/y, down 0.2pp m/m. Prices in some major tier-two cities increased, with Chongqing, Haikou and Wuhan all showing expansion for new builds, but declines for second-hand homes. Only Chengdu increased prices in both categories. (Source: Securities Daily)
• China’s foreign exchange and financial sector should prioritise support for tech and innovation firms to achieve high-quality development, according to Pan Gongsheng, head of State Administration of Foreign Exchange (SAFE). Speaking on a recent tour of Beijing’s tech development zone, Pan said SAFE aimed to support firms to become “bigger and better” through integrating investment and financing models with the international market, and improve efficiency for cross border financing and fund management. Jin Wei, vice mayor of Beijing also joined the tour. (Source: Yicai)