MNI China Press Digest October 25: Yuan, Growth, Real Estate

The following lists highlights from Chinese press reports on Tuesday:

• The yuan may continue to fall until the end of the year as the U.S. Dollar Index is unlikely to retreat soon amid geopolitical turmoil, Yicai.com reported citing analysts. The People’s Bank of China is seeking to stabilise the currency by setting the central parity rate stronger, with traders saying the rate set by PBOC is over 1,000 points stronger than predicted by their models, Yicai said. Apart from the U.S. dollar, China’s exports are a key factor affecting the yuan. High-frequency data suggests exports may continue to slow in Q4, with container throughput at major ports falling by 9% in the first 10 days of October, the newspaper said citing Chang Jian, chief economist at Barclays China.
• Both the central and local governments should seize the moment to further stabilise the economy, work together to achieve reasonable growth and strive for better results, Xinhua News Agency reported citing a State Council meeting chaired by Premier Li Keqiang. China should thoroughly implement pro-growth measures, focus on stabilising employment and prices, and ensure smooth transportation and logistics and stable energy supply, the meeting said.
• China’s housing market has shown a weak recovery as the year-on-year decline in home sales from January to September narrowed, the 21st Century Business Herald reported. Transaction volumes are expected to increase month-on-month in Q4 as local governments keep loosening policy and developers continue with sales promotions, the newspaper said citing Chen Wenjing, head of market research at China Index Academy. Reducing the down-payment ratio, supporting the purchase of second homes, and relaxing restrictions on home purchase limits are required to support a further recovery, the newspaper said citing analysts.