MNI China Press Digest Sep 5: PBOC, Sports, Beijing Home Sales

Highlights from Chinese press reports on Friday:

• The People’s Bank of China will likely carry out another six-month outright reverse repo operation later this month to offset the maturity of a CNY300 billion such tool, after rolling over the matured CNY1 trillion three-month outright reverse repo on Friday, Economic Information Daily reported citing analysts. Liquidity this month is facing pressure of peak issuance of government bonds, CNY3.5 trillion of maturing interbank certificates of deposit and residents’ turning deposits into equity investments, the newspaper said citing Wang Qing, analyst with Golden Credit Rating. Wang expects the PBOC to roll over the maturing outright reverse repo with excessive amount, implement a reserve requirement ratio cut in Q4 and resume treasury bond trading in due course.
• Authorities are urged to boost sports consumption and cultivate a group of sports enterprises and events with global influence by 2030 to build a CNY7 trillion plus sports industry, according to a document released by the State Council Thursday. Local governments should introduce preferential measures such as sports consumption coupons, discounts and digital-yuan subsidies, the document said, adding that a fiscal subsidy will be provided for loans to eligible sports business operators.
• New home sales in Beijing rose 6.2% m/m to 2,733 units in August after the city scrapped the limit on the number of houses purchased outside the fifth ring road and cut borrowing costs, Yicai.com reported. Sales were still down 12.1% y/y. Second-hand housing transactions reached 13,331 units, up 4.3% m/m but down 7.2% y/y. September sales are expected to improve as policy effects take hold and new supply enters the market, the report said, citing analysts.