MNI China Press Digest, May 6: Growth, Housing, Investment

     BEIJING (MNI) - The following are highlights from Chinese press reports on

Monday:

     China's economy may experience a significant rebound in May, peaking in

October before slowing by the beginning of next year, the Economic Observer

reported citing Liu Shijin, a member of the PBOC's monetary policy committee. 

The growth is unlikely to have a V- or U-shaped trajectory, and it's not

possible to repeat the rapid growth seen in the past, Liu was cited as saying.

     Home-purchase regulations in popular second-tier cities may be tightened in

Q2, as the surging home and land transactions in these cities drew scrutiny from

regulators, said Economic Information Daily citing Zhang Dawei, chief analyst at

Centaline Property. The total turnover of second-hand housing in 10 second-tier

cities including Nanjing, Xiamen and Qingdao increased 25.9% m/m in April, and

some cities experienced the highest turnovers in two years, the newspaper said

citing a report by Shanghai E-House Real Estate Research Institute.

     China's new regulation on investment released by the State Council on

Sunday will help direct funding to the most urgent areas while controlling

government debt financing, said China Securities Journal in an op-ed commentary

today. The new rules clarify that public funds should be invested in public

sectors such as social services, infrastructure and security, where resources

cannot be effectively allocated, the newspaper said.

--MNI Beijing Bureau; +86 (10) 8532-5998; email: wanxia.lin@marketnews.com

--MNI Beijing Bureau; +86 10 8532 5998; email: william.bi@mni-news.com

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