MNI China Press Digest Nov 7: Stock Connect, Covid, Property

The following lists highlights from Chinese press reports on Monday:

• China's securities watchdog will expand the number of stocks included in the Stock Connect Scheme with Hong Kong as it promotes the opening up of capital markets to attract more domestic and foreign medium- and long-term funds, the Shanghai Securities News reported citing Fang Xinghai, vice chairman of China Securities Regulatory Commission. More A-share companies will be included in the cross-border Stock Connect, and the CSRC will support the launch of RMB stock trading counters as well as Treasury bond futures in Hong Kong, said Fang. Global depository receipt (GDR) and Chinese depository receipt (CDR) issuance will be improved, and an Exchange Traded Fund between China and Singapore is set to be launched soon, Fang was cited as saying.
• China will continue to adhere to its Covid-Zero policy and will strictly implement various measures to quickly strengthen the control of local outbreaks, CCTV News reported, citing officials from National Health Commission at a press conference on Saturday. The current epidemic situation is “severe and complex” with wider outbreaks across provincial capitals including Urumqi, Hohhot, Guangzhou, Zhengzhou, Fuzhou and Lanzhou. Mi Feng, NHC spokesperson emphasised that the ninth edition of the Covid-19 Epidemic Prevention and Control Measures must be strictly implemented, and excessive measures by local authorities must be rectified.
• Foreign companies including BlackRock, Daiwa House and Capitaland have started “bottom fishing” for bargains in China's property market, which reflects optimism about its prospects, the central bank-run newspaper Financial News reported citing analysts. Foreign investors have been active in purchasing land in first- and second-tier cities, as well as buying commercial real estate, rental housing projects and industrial and logistics properties at low prices. The market is expected to stabilise in coming months, as the declines in home sales, projects completed, and investment volumes have all narrowed while real estate financing has also rebounded, the newspaper said citing Zhang Xu, chief fixed income analyst at Everbright Securities.