MNI China Press Digest June 26: Bank Audit, Exports, Vouchers

Highlights from Chinese press reports on Thursday:

• Several financial institutions have engaged in the irregular disposal of non-performing assets, according to a report by the National Audit Office. The report found that two policy banks and three local small- and medium-sized banks illegally concealed non-performing assets totalling over CNY50 billion, by not downgrading assets or adjusting repayment plans. Authorities found loopholes in seven commercial banks real-estate financing, with CNY20 billion of lending illegally flowing to housing projects without certificates. (Source: 21st Century Business Herald)
• Shanghai’s exports rose 11.5% during the first five months of the year, as foreign trade companies seized the opportunity to accelerate exports and diversified markets, Yicai news agency reported. The decline in exports to the U.S. was offset by growth in the EU, ASEAN and the Belt and Road countries, noted Wang Jia, assistant researcher at the Institute of Economics of the Shanghai Academy of Social Sciences. Although imports fell 4.8% y/y overall, inbound shipments of rubber, aircraft parts, audio and video equipment and industrial robots increased by 59.6%, 29.9%, 18.2%, and 23.1%.
• Local governments are expanding consumption subsidies from conventional consumer goods, catering and tourism towards broader residential services such as childcare, Caixin.com reported. Guangdong province issued vouchers up to CNY2,000 per child to cover institutional childcare costs from June to August. While Hainan province has given up to CNY600 per month from June till December, targeting those under four.