MNI China Press Digest Aug 1: PMI, Capital Market, NDRC

Highlights from Chinese press reports on Friday:

• China’s July PMI showed the economy continues to face downward pressure, according to Zhang Liqun, analyst at the China Federation of Logistics and Purchasing, after the index reached 49.3%, down 0.4 percentage points from the previous month and below the boom and bust line for four consecutive months. Zhang noted the contraction in demand had continued, with various order-related indices down to different degrees. “If demand cannot rebound, authorities must increase macroeconomic counter-cyclical adjustments as soon as possible to enhance the recovery momentum of China's economy,” Zhang added.
• Capital market analysts expect additional policy support and incremental funds after the Politburo called for measures to ensure the capital market's stability and consolidate recent upward momentum, Economic Information Daily reported, citing analysts. The meeting called on authorities to make the domestic capital market more attractive and inclusive, marking the first use of such language from high level leaders. Looking ahead, the government needs to deepen reforms, further relax QFII/RQFII quotas to attract more international capital, diversify products and improve supervision, the newspaper said, citing analysts.
• The National Development and Reform Commission will intensify efforts to stabilise investment and promote consumption in the second half, with pledges to enhance the "full-cycle" management of government investment projects and stimulate the vitality of private investment, Securities Times reported, citing a recent announcement from the central planner. The NDRC also emphasised the need to deepen bidding system reform and standardise local investment behaviour to deepen the construction of a unified national market, the newspaper said.