MNI China Press Digest Sep 5: Implicit Debts, Property Market

Highlights from Chinese press reports on Tuesday:

• Chinese authorities have deployed measures to resolve local debt risks in H2, however, details are yet to be revealed, while local authorities are expected to issue more refinancing bonds within the legal debt limit to roll over some implicit liabilities. In August, refinancing bond issuance hit a new yearly high over CNY600 billion, though local governments have not used the proceeds to repay the implicit debt. By end-2022, the national local government debt balance was about CNY35.1 trillion, controlled within the CNY37.7 trillion local debt limit approved by the National People's Congress, which leaves room for CNY2.6 trillion of refinancing bonds. (Source: 21st Century Business Herald)
• Real-estate agents in Beijing and Shenzhen have encountered strong market activity after tier one cities announced recent property market relaxation policies. One agent with nine years experience told Yicai news agency the boom in activity was unparalleled and his office had worked very late each day to cope with demand. Agents interviewed by Yicai said, although the spike in demand was welcome, the industry needed time to assess how long it would continue. Insiders noted they did not see any evidence of house prices increasing yet, but buyers were finding discounts harder to find. (Source: Yicai)
• China will ensure strict management and cost control of affordable housing and will not permit listed trading of such property, according to He Lifeng, a member of the Political Bureau of the CPC Central Committee and vice premier at the State Council. Speaking at a housing conference, He said affordable housing construction was a major project for the country and important for common prosperity. Policymakers would use affordable housing to alleviate market conflicts in big cities and effectively promote real estate in an orderly and effective manner. (Source: Yicai)