MNI China Press Digest Oct 11: Consumption, Real Estate, Banks

Highlights from Chinese press reports on Wednesday:

• Financial institutions should help expand and lower the threshold of automobile consumption by relaxing auto loan application conditions, reducing downpayment ratios, and extending the loan period, according to a document released by National Administration of Financial Regulation. They are also required to increase financial support to encourage new types of consumption, and reduce consumer finance costs by standardising financial service charges and setting reasonable interest rates, the document said. (Source: Shanghai Securities News)
• Country Garden, China's largest private developer, warned on Tuesday it could not meet offshore debt obligations and kicked off overseas debt restructuring. The company said it will actively promote overseas debt management and formulate overall solutions in a fair manner to achieve a long-term and sustainable capital structure, as it expects liquidity to remain tight in the short- to medium-term given the sales environment has not improved significantly. Earlier, the company’s domestic bonds totaling CNY14.7 billion managed to earn a three-year extension. (Source: 21st Century Business Herald)
• No new refinancing projects of listed banks have passed the final review since the securities regulator announced new rules to control large amounts of refinancing and restrict listed companies which fall on debut or fall below net-asset value to refinance in August. However, market trading price lower than NAV has always been the norm for Chinese listed banks. Regulators should lower the threshold appropriately for banks with urgent needs for capital replenishment, industry insiders said. (Source: Yicai)