MNI China Press Digest Feb 6: Prices, Service Trade, Housing

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

• China’s CPI is expected to see a moderate rebound should non-ferrous metals and other upstream materials continue with the upward trend, Securities Times reported citing analysts. PPI saw structural recovery mainly driven by rising prices of coal, ferrous metals and non-ferrous metals, while traditional sectors such as petrochemicals are still absent and have room for improvement. However, the intense competition among midstream manufacturers, and uncertain downstream demand recovery have weakened the transmission from PPI to CPI to about 0.3-0.4, and there is a lag effect of 3-6 months, the newspaper said citing analysts.
• China’s service trade maintained steady growth in 2025, exporting CNY3.6 trillion and importing CNY4.5 trillion, both representing a year-on-year rise of 14.2% and 2.5%, Securities Daily reported citing data by the Ministry of Commerce. The service trade deficit marked a decrease of CNY343.9 billion from the previous year. Travel service exports grew rapidly by 49.5%, supported by the country’s expanded scope of nations eligible for its unilateral visa-free policy, the newspaper said citing analysts.
• Local governments are expanding the scope of housing provident fund usage, particularly to support urban renewal projects that improve living conditions and boost residential assets, Yicai.com reported. To leverage more than CNY10 trillion in funds, more cities are allowing the money to be used for demolition and reconstruction, as well as age-friendly modifications such as elevator installation. The key goal remains raising residents’ expectations and willingness to spend on housing, the newspaper said.