MNI China Press Digest: Tuesday, January 2

     BEIJING (MNI) - The following are highlights from the China press for

Tuesday, January 2:  

     Both banks and home buyers are under great pressure from stricter mortgage

requirements, the 21st Century Business Herald reported Tuesday. The newspaper

cited an anonymous bank source saying it now takes six months or more to get a

mortgage, with some banks having stopped their mortgage lending. Banking experts

said quotas will remain under stress in 2018 because China will continue the

deleveraging of the property sector. That process is increasingly pressuring

banks to restructure their businesses because exposures to the property sector

are large. At one branch of a bank in Guangdong province, the property sector

exposure accounted for 62.5% of bank assets, according to the newspaper. (21st

Century Business Herald)

     The People's Bank of China will continue to focus on maintaining economic

stability and implementing a prudent monetary policy, PBOC Governor Zhou

Xiaochuan said in his annual New Year speech, published by Financial News on

Tuesday. The PBOC would strive to maintain reasonable growth of credit and

social financing, Zhou said, stressing the importance of high quality economic

growth through further financial reform and opening up of the financial sector.

He reiterated the PBOC will perform its role in the Financial Stability and

Development Committee under the State Council, whose offices are located in the

central bank, and stressed the need to control risks to forestall systemic

financial problems. (Financial News)

     China will take steps to further boost domestic consumption in 2018, the

Economic Information Daily reported Tuesday, citing Zheng Wen, an official at

the Ministry of Commerce. The MOFCOM will create commercial areas in a number of

medium-sized and large cities, including 100 commercial areas and 20 commercial

streets anchored by brands with long histories and good reputations, to

stimulate consumption, Zheng told the newspaper. Chen Guokai, head of market

operation bureau at MOFCOM, said China will nurture several "consumption cities"

where large consumption potential can be released. In addition, more tax-free

consumption policies could be implemented. Under this consumption upgrade action

plan, which could be implemented in the first half of 2018, the government will

support consumption of medium- to high-quality products and promote "green

consumption" -- adopting green technology, using environment-safe packing and

promoting recycling, the ministry said. (Economic Information Daily)

     The reform of the operation and investment activities of state-owned

companies will be sped up and upgraded in 2018, the Economic Information Daily

said in front-page report Tuesday. "Related government departments" are about to

implement a series of policies to reform the investment by and operation of

SOES, the newspaper said. Reorganization and reform of SOEs will be deepened and

their operating activities will be further specified in the reform. (Economic

Information Daily)

--MNI Beijing Bureau; +86 (10) 8532-5998; email: iris.ouyang@marketnews.com

--MNI BEIJING Bureau; +1 202-371-2121; email: john.carter@mni-news.com

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