MNI China Press Digest April 7: Stimulus, A-shares, Travel

Highlights from Chinese press reports on Monday:

• The Politburo is expected to ramp up policy support to boost domestic demand at its April meeting, in response to the larger-than-expected U.S. tariff hikes, according to Zhang Jun, chief economist at China Galaxy Securities. Zhang noted that several counter-cyclical policies have already been announced but not yet fully implemented, including childcare subsidies and urban village renovation initiatives. Additional measures could involve subsidies to stimulate service consumption, as well as increased efforts to purchase unsold homes and vacant land. (Source: Securities Daily)
• China’s capital market is expected to remain resilient despite inevitable short-term fluctuations following the latest U.S. tariff hikes, analysts told Shanghai Securities News. China has ample policy room to boost domestic demand and the A-share consumption sector could follow an independent trajectory, especially as more counter-cyclical measures are anticipated in the second quarter, the paper reported. The sharp decline in U.S. stocks is partly due to the release of valuation risks that had built up over the past few years, while A-share valuations remain relatively low, the report added.
• During the three-day Qingming Festival, cross-regional travel is estimated to reach 790 million trips – a 7.1% increase compared to the same period last year, setting a new record for travel volume, according to the Securities Times citing data from the Ministry of Transport. The average spending per person on domestic tourism rose by around 5% year-over-year, with short- and medium-distance self-driving trips remaining the most popular, based on data from the online travel platform Fliggy.