September 30, 2022 00:55 GMT
MNI summarises the key stories from the Chinese press.
The following lists highlights from Chinese press reports on Friday:
- Some Chinese cities suffering ongoing declines in home prices have been allowed to temporarily relax the floor on mortgage rates for first home buyers, The Beijing News reported citing a statement on the central bank website. For cities where new home prices posted month-on-month and year-on-year declines between June and August 2022, localities can decide on whether to maintain, lower or scrap the floor on first-home mortgage rates by the end of 2022, the statement said. The current floor rate of 4.1% is expected to be breached and this may trigger a new round of mortgage rate cuts in Q4, the newspaper said citing analysts. Among the 70 key cities monitored by the National Bureau of Statistics, 23 cities, including 8 second-tier and 15 third-tier cities, fit into the new policy, the newspaper said citing E-house China Research and Development Institution.
- China’s current account will maintain a reasonably sized surplus and the resilience of the balance of payments will support the stability of the yuan and the foreign exchange market, the Securities Daily reported citing Wang Chunying, deputy director of the State Administration of Foreign Exchange. China’s current account surplus was USD166.4 billion in H1, a rise of 43% y/y, while the direct investment surplus was USD74 billion. Together they delivered a 3% year-on-year increase to relatively high historic levels, the newspaper said. The Chinese market will continue to attract foreign investment, while the stable returns and investment value of yuan assets remain attractive in the long run, the newspaper said citing Wang.
- The People’s Bank of China will strengthen its counter-cyclical adjustment and increase the intensity of prudent monetary policy via both aggregate and structural tools to stabilize employment, prices and the economy, according to a statement on the PBOC website following the Monetary Policy Committee’s Q3 meeting. The PBOC will deepen the market-based reform of the exchange rate, enhance yuan flexibility and strengthen expectations management to stabilise the yuan at a reasonable and balanced level, the statement said.