MNI China Press Digest May 28: Housing, FTA, Integrated Circuit

Highlights from Chinese press reports on Tuesday:

• Shanghai became the first among China’s biggest cities to lower down-payment ratios and the mortgage rate floor for homebuyers on Monday. The down-payment ratios for first- and second-time buyers were lowered to a minimum of 20% and 35%, from the previous 30% and 50%. The minimum mortgage rates for first- and second-time purchases were lowered to 3.5% and 3.9%. The city also allowed families with multiple children to purchase an additional house and lower the income tax, and social security payment requirement for non-local homebuyers. (Source: Securities Daily)
• China wants to accelerate China-Japan-ROK Free Trade Agreement negotiations and strengthen cooperation in high-end manufacturing, new energy industries, artificial intelligence, and biomedicine, Premier Li Qiang said at the 9th China-Japan-ROK Leaders Meeting in Seoul. Huang Fei, director at the Seoul Graduate School of Science noted the three nations have huge opportunity for industrial and supply-chain synergy beneath end product competition. Chen Yan, executive director of the Japan Enterprise Research Institute said Japanese firms should be important partners in technological fields, but cooperation remained uncertain. (Source: Yicai)
• China set up a national integrated circuit industry investment fund (phase III) on Friday with registered capital totaling CNY344 billion. The six major state-owned banks including Industrial and Commercial Bank of China and Agricultural Bank of China on Monday also pledged to contribute CNY114 billion, with a shareholding ratio of 33.14%. The fund is jointly funded by the Ministry of Finance and 18 other shareholders. The registered capital of the third phase of the fund has increased significantly, exceeding the combined amount of the first and second phases. (Source: China Securities Journal)