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MNI China Press Digest May 30: Shanghai, Bond Market, Housing

MNI (Singapore)

The following lists highlights from Chinese press reports on Monday:

  • Shanghai will scrap unreasonable restrictions to accelerate the resumption of work and production and promote consumption and investment after a two-month lockdown to curb the spread of Covid-19, Xinhua News Agency reported citing a statement on the municipal gov website on Sunday. Among the latest 50 measures to reignite growth, the city will issue 40,000 new vehicle licenses, reduce the purchase tax on some vehicles, and subsidise car buyers of electric vehicles, the statement said. It will also launch over eight shantytown renovation projects, and expand corporate bond issuance to fund infrastructure construction.
  • China will open its exchange-based bond markets starting on June 30 to qualified foreign institutional investors in the latest move to expand capital inflows, according to a statement on the People’s Bank of China website late Friday. Currently, foreign investors are only allowed to invest in the country’s interbank bond market, MNI notes. The balance of China’s bond market, the second largest in the world, was CNY138.2 trillion as of April 2022, among which 1,035 foreign institutions hold CNY3.9 trillion worth of Chinese bonds, the statement said.
  • More banks will reduce mortgage interest rates to attract homebuyers as housing loans may become popular high-quality credit assets among banks amid current weak credit demand, the Economic Daily reported on the front page. Banks in major second-tier cities including Zhengzhou and Wuxi have lowered their first-home mortgage rates more than 150 basis points from the high point in 2021, while banks in four first-tier cities have also cut their mortgage rates moderately despite rising home prices month-on-month, the newspaper said.
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