MNI China Press Digest May 31: Bonds, Housing, Investment

The following lists highlights from Chinese press reports on Tuesday:

• China will accelerate the issuance and use of local government special bonds to promote investment and stabilise economic growth, ensuring that all CNY3.65 trillion in new special bonds this year are sold by end-June and basically used by end-August, according to a statement on the Ministry of Finance website, citing a meeting chaired by Finance Minister Liu Kun. As of May 27, a total of CNY1.85 trillion of new special bonds had been issued, an increase of CNY1.36 trillion over the same period last year, the statement said. China will increase value-added tax refunds and review to include more industries, and quicken fiscal spending, the statement said.
• Housing markets in May have seen a marginal increase in sales but any significant recovery will require an easing on pandemic curbs and more policy support with buyers still hesitant, the 21st Century Business Herald reported. Home sales in 17 major cities monitored by the China Index Academy rose 8.8% m/m in May, among which that in second-tier and third-tier cities increased by 8.31% and 27.2%, respectively, the newspaper said. There may be a further sales increase after the Dragon Boat Festival holiday in early June, the newspaper said citing an unnamed real estate salesperson.
• Foreign companies are still reluctant to miss the business opportunities in China despite the impact of domestic Covid-19 outbreaks, and continue to increase investments, the Beijing Business Today reported. Just over 87% of interviewed foreign-funded companies maintained or expanded their business scale in Q1, and 72% of them increased investment by more than 5%, the newspaper said citing a report by China Council for the Promotion of International Trade released Monday.