November 07, 2023 02:11 GMT
MNI China Press Digest Nov 7: PBOC, Consumption, Gov Bonds
MNI picks keys stories from today's China press
Highlights from Chinese press reports on Tuesday:
- Authorities will improve the marketisation of mortgage interest rates to better support housing demand, according to the People’s Bank of China (PBOC). The PBOC aims to create a virtuous cycle between finance and real estate by expanding the space for independent pricing of mortgage interest rates and support for city governments to make good use of policies based on city-specific conditions. Central bank officials will move ahead with LPR reform and urge quoting banks to improve the quotation mechanism to enhance the effectiveness of the LPR on actual loan interest rate pricing. (Source: Yicai)
- Officials in China can boost consumption by increasing residential incomes, stimulating car purchases, avoiding a real estate hard landing and lowering the cost of education and healthcare, according to Huang Qifan, vice-president at the China Institute for Innovation & Development Strategy. Residents disposable income should be raised to 52% of GDP from 43% in 2022, Huang added. China’s car production and sales volume have not increased for five years, and car ownership of 21% remains below the 40% average for developing countries with a per capita GDP of USD10,000. (Source: Yicai)
- Beijing will allocate the recently announced additional CNY1 trillion government bonds according to the quality and maturity of infrastructure projects, instead of directly distributing to provinces, 21st Century Business Herald reported citing unnamed local officials. The central government will provide funding support if quality conditions are met and will not set quotas for each province, an official from a western province explained. Local governments will receive funds according to their need for post-disaster reconstruction and flood protection, the newspaper said.