MNI China Press Digest, Sep 29: LGFV , Mortage Limits, TikTok

MNI (Beijing) - The following lists highlights from Chinese press reports on Tuesday:

Bonds issuance by Chinese local government financing vehicles may increase by the end of the year despite measures tightening credit, and investment companies of regional governments will lead the promotion of urbanization, the Economic Information Daily reported on Tuesday citing Zhai Jin, an analyst from Moody's. The amount of urban investment bonds reached CNY3.2 trillion by the end of September, up 28% y/y, as companies utilized ample liquidity and low-financing costs during March and April to raise funds to invest in infrastructure projects and refinancing, according to Moody's.

China may restrict banks' mortgage assets to less than 30% of their total by applying stricter reviews of loan qualification, size and maturity, reserving most of the quota for first-time buyers and those who intend to live in purchased properties, the Securities Daily reported on Tuesday citing Xu Xiaole, the lead analyst from the Beike Research Institute. The "debt reduction" signal from the authorities in August will place pressure on real estate financing in Q4, as companies boost capital through overseas financing, the Daily reported citing Zhang Dawei, an analyst from Centaline Property. The scale of financing in Q4 was likely to contract and real estate companies could move to promote sales to counter financing pressures, according to Pan Hao, another analyst from the Beike Research Institute.

China won't allow the White House attempt to force Bytedance, the parent company of TikTok, to sell its U.S. operation and is fully prepared to fight resolutely against the move, said Global Times, a tabloid under the Communist Party's official newspaper People's Daily. In an editorial, the Times said the U.S. was "shamelessly" stealing a Chinese company, and China's resistance was significant for the safeguarding of the rights of companies in all countries.