MNI China Press Digest Jan 5: Stocks, Real Estate, Consumption

Highlights from Chinese press reports on Monday:

• China’s A-share market performance will be supported by the restructuring of the international order and the country's industrial innovation, potentially with an initial rise followed by stabilisation, Securities Times reported citing Li Qiusuo, chief domestic strategy analyst at China International Capital Corporation (CICC). A-shares are expected to see a sustained rise in a stable external environment till the end of the U.S. midterm elections with the implementation of a China-U.S. trade deal, but external disturbances may increase sharply after the election, said Qiu Xiang, chief A-share strategist at CITIC Securities.
• Authorities should maintain strong policy support to stabilise the real estate market, ensuring measures meet market expectations and avoid a piecemeal approach, while coordinating with other macro policies and preparing for potential developer bankruptcies and restructurings, according to a commentary published by the party-run magazine Qiushi. The magazine also said it was necessary to strengthen price monitoring and improve expert interpretation of sensitive indicators, including real estate investment, the number of foreclosed properties, and developers’ bankruptcies and debt restructurings, in order to better guide market expectations.
• China saw nearly 600 million passenger trips during the New Year’s Day holiday, with 142 million people travelling domestically and generating revenue of CNY84.79 billion, the 21st Century Business Herald reported, citing official data. Catering consumption rose 2.8% y/y, while average daily foot traffic and turnover at 78 key business districts nationwide increased by 5.9% and 4.9%, compared with the same period last year. Sales of health-related and smart wearable devices rose by more than 20% and 15%.