MNI China Press Digest Aug 22: Education, Stocks, Fiscal

Highlights from Chinese press reports on Friday:

• China's universities introduced 1,395 new engineering majors and cancelled 823 over the past two years as the country moves to address a shortage of talent in emerging sectors, Yicai reported, citing experts. Currently, more than 80% of university majors stem from the first three industrial revolutions and face challenges such as demand mismatches and inadequate skill development, one expert noted. Li Yanrong, an academic at the Chinese Academy of Engineering, emphasised that most of the nation's engineering courses relate to technical support systems subdivided by industrial categories, a structure that fragments knowledge, dilutes educational resources and undermines knowledge integration.
• Improvements to Chinese firms' long-term competitiveness and sustainable profitability amid structural transformation has driven the recent re-rating of companies' stock valuation, alongside the easing of systemic real-estate risks and stronger policy support measures, according to Cheng Yu, a hybrid fund manager at Allianz China. Cheng emphasised the re-ratings were not predicated on macroeconomic growth, current earnings, or monetary easing, but rather on the country's long-term competitive positioning. (Source: Yicai)
• Authorities have issued CNY3.05 trillion in new special bonds as of Aug 21, marking a 47.1% increase y/y and leaving around CNY1.35 trillion still available. The Securities Daily said authorities are expected to concentrate the remaining issuance in September. Feng Lin, executive director at Orient Jincheng, a securities firm, noted that infrastructure development and land reserve acquisitions remain the primary destinations for the funds. In the first seven months of the year, 38.5% of proceeds were allocated to three key infrastructure sectors, municipal and industrial park development, transportation networks and agriculture, forestry, and water resources, the daily noted.