MNI China Press Digest Oct 19: Housing, Manufacturing, Credit

The following lists highlights from Chinese press reports on Wednesday:

• The recovery in China's second-hand housing market is accelerating, with the growth of transactions outpacing new home sales, Caixin reported. A total of 10.96 million square metres of second-hand houses in 21 key cities were sold in September, a rise of 24.6% y/y, according to Chine Real Estate Information Corporation. This compares to 12.73 million square metres of new homes sold, a decline of 14%. The rebound has been driven by recently simplified transaction processes and preferential tax policies for second-hand home purchases, Caixin said. Analysts believe there will be no major change in real estate policy judging from statements at the 20th National Congress, and the existing policy framework will remain loose until the market is stabilised, Caixin said.
• Both central and local governments are increasing policy support to stabilise manufacturing investment and promote the high-quality development of industry, said China Securities Journal in a front-page report. Manufacturing SMEs can defer paying taxes and fees for up to 13 months, which is expected to save them more than CNY20 billion in financing costs, the newspaper said citing analysts. The re-lending facility announced by the People’s Bank of China, which supports banks to provide loans with an interest rate of no higher than 3.2% to manufacturers, will spur investment in equipment upgrades, the newspaper said. Additional support for land, taxation and capital should be continued to boost manufacturing investment, the newspaper added.
• Six major state-owned banks will continue to be the main source of credit issuance in Q4, with lending to infrastructure, manufacturing and real estate expected to drive growth in credit and total social financing and stabilize economic growth, the 21st Century Business Herald reported. New loans by six major banks increased by over CNY9.53 trillion in the first three quarters, accounting for more than 50% of total new loans, the newspaper said. The growth rate of manufacturing, green loans and inclusive loans to SMEs were relatively high, the newspaper added.