MNI China Press Digest May 30: SOE, Guangdong, Pork

Highlights from Chinese press reports on Tuesday:

• The government's plans to boost SOE involvement with emerging industries will enhance valuations, promote diversification, boost brand value and improve profitability, according to experts interviewed by the Securities Daily. China can achieve industrial transformation and obtain advantages in future competition, if it develops its emerging industries. SOEs have a natural synergy with the sector, as they are suited for projects involving large initial investment with long return periods. Through more engagement with the emerging sector, central enterprises can accelerate wider reforms needed to become more innovative and competitive, the paper said.
• Guangdong province will develop its high quality economy through achieving a technological revolution and industrial transformation, according to recent plans released by the provincial government. Policymakers will focus on advanced manufacturing, and develop industrial clusters for integrated circuits, new energy vehicles, and clean energy storage. Traditional industries such as furniture and clothing will also benefit from policies to support upgrading. Guangdong’s plans will combine foreign trade and capital, and construct 5 major import zones for bulk commodities and electronic components. (21st Century Herald)
• China’s pork prices will rebound in H2 as demand increases following several consecutive months of industry losses according to analysts interviewed by the 21st Century Herald. However consumer demand will not be enough to bring back excess profits seen in 2022. In the near term, consumers demand is expected to remain low, which will keep pork prices around Yuan14 kg, according to one analyst. Given current conditions, farmers should continue to sell pigs at normal weight, but also consider some secondary fattening when appropriate. (Source: 21st Century Herald)