EM ASIA CREDIT: PTT Global Chemical: Ratings affirmed

China's Small and Medium Enterprises Development Index was 89.0 in July, unchanged from June, China Securities Journal reported, citing data from the China Association of Small and Medium Enterprises (CASME). Based on a survey of 3,000 SMEs across eight major sectors, the index recorded gains in six sectors, including construction and transportation, while the industrial and wholesale and retail sectors declined. CASME data also showed funding conditions for SMEs improved and investment willingness edged higher, the newspaper said.

China’s CPI is likely to recover moderately following recent measures to boost domestic demand, Shanghai Securities News reported citing Wang Yunjin, chief financial researcher at the Guangkai Chief Industry Research Institute. He cited newly introduced fertility support policies, free preschool education, and loan interest subsidies for consumer and service businesses. National Bureau of Statistics data released Saturday showed CPI was flat year-on-year in July, while PPI fell 3.6% y/y. Analysts cited by the newspaper said PPI may continue to improve, supported by a lower base from the same period last year and a crackdown on excessive competition that is pushing up industrial product prices.

Beijing’s latest relaxation of home purchase limits in suburban areas is expected to boost sales significantly, Securities Times reported, after the city last Friday scrapped the cap on the number of properties that can be owned outside the Fifth Ring Road. Sales center visits rose 40-200% over the past two days compared with the previous weekend, according to Guo Yi, chief analyst at real estate agency Heshuo. The policy change is expected to benefit about 80% of new housing projects, particularly those targeting buyers seeking upgraded living conditions, the newspaper said. Non-local buyers, those without Beijing household registration, still need two years of social insurance payments to qualify for purchases.