September 07, 2023 01:52 GMT
MNI China Press Digest Sep 7: Housing Market, Pork Prices, NEV
MNI picks keys stories from today's China press
Highlights from Chinese press reports on Thursday:
- Housing markets in first-tier cities including Beijing and Shanghai have recorded active transactions with homebuyer confidence boosted following the recent easing of mortgage rules. On the first weekend after the new policy was introduced, the number of single-day visits and transactions increased by 2.5-3 times on the week, said a sales manager in Shanghai. Mega cities are expected to see in a wave of purchases seeking to upgrade, as the number of second-hand listings in Beijing and Shanghai has increased by over 4,000 and 3,000 units. However, the performance in the second- and third-tier cities remains flat so far. (Source: Xinhua News Agency)
- Chinese demand for pork may increase in Q3 but prices are unlikely to rise significantly due to an abundance of supply, according to Yicai. Huatai Securities noted major pork producers had suffered significant losses in Q2 due to low prices, with the asset-liability ratio of listed companies remaining high and fixed-asset investment slowing. Given heavy losses and weak cashflow, major breeders may reduce sow production capacity across the country which could support prices in 2024. However the market has also seen a recent increase in secondary fattening, which shifts present supply into the future, putting downward pressure on 2024 price.
- Buyers in China purchased 698,000 new energy vehicles in August, an increase of 32% y/y and 9% m/m, according to statistics from the China Association of Automobile Manufacturers. The association said the market has recorded 5.1 million unit sales year-to-date, up 39% y/y. Haitong Securities forecasted NEV sales growth could be sustained given decreasing raw material input costs and continued policy support. The investment firm recommended stock pickers focus on firms specialising in lithium manganese iron phosphate batteries (Source: Yicai)