MNI China Press Digest Sept 11:Mortgage Rates, Car Sales, SMEs

MNI (BEIJING) - Highlights from Chinese press reports on Wednesday:

• The mooted cut to existing mortgage interest rates will be constrained by banks’ narrowing interest margin and any reduction would be limited, Shanghai Securities News reported citing analysts. The current mortgage interest rate is 3.4% for first-time buyers in Shanghai, compared with the 4.55% level of existing loans. Mortgagees feel greater pressure this year amid weakened income growth and asset value, while some banks have allowed those under great payment pressure to make interest-only repayments within a certain period, the newspaper said.
• China’s electric vehicle production and consumption grew by about 30% y/y in August to reach over one million units, as local governments’ trade-in subsidies have stimulated demand for new cars, Securities Daily reported. EV sales accounted for about 45% of total new car sales. The total automobile production and sales both exceeded 2.4 million units in August, growing 9% and 8.5% m/m respectively. The sales boom is expected to continue amid the upcoming September-October peak season, along with new product launches by major automakers, the newspaper said citing Chen Shihua, deputy secretary-general at the China Association of Automobile Manufacturers.
• China’s SME Development Index reached 88.8 points in August, down 0.1 points from July, according to the Association of Small and Medium-sized Enterprises. Ma Bin, vice president at the association, said heavy rainfall and high temperatures, as well as lower economic activity, impacted SMEs. Wu Dan, a researcher at Bank of China, said the results showed economic development was undergoing transformation, but noted indices for accommodation, catering and retail industries had increased. (Source: Securities Daily)