CBN丨China's property sector faces downward pressure in July but will remain stable: NBS
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China's property market continued to face downward pressure in July as home sales halved from June;
The NDRC vows to ramp up coal supply for power generation amid prolonged heat waves.
Here’s what you need to know about China in the past 24 hours
China’s real estate market softened again last month， ending a two-month recovery， as home sales almost halved from June and prices in second- and third-tier cities fell， and national real estate development investment saw a year-on-year decline， official data showed on Monday.
In first-tier cities last month， new apartments became 0.3 percent more expensive than in June， with lived-in homes 0.2 percent pricier， data from the National Bureau of Statistics (NBS) showed on Monday.
In second-tier cities， the cost of a new apartment was unchanged， while second-hand ones were 0.2 percent cheaper. In third-tier cities， new and lived-in apartments saw prices dip 0.3 percent each from June.
Among 70 large and medium-sized Chinese cities， 40 recorded price drops from June for new homes， two more than in June.
Experts noted that mortgage defaults in some cities， with yet-to-be delivered property projects being delayed， have also affected market sentiment.
Some 92.6 million square meters of residential property were sold last month， down from 181.9 million in June， NBS data showed. The value of sales slumped 46 percent to 969.1 billion yuan from 1.8 trillion yuan.
National real estate development investment fell 6.4 percent year-on-year in the first seven months， according to NBS data.
According to the latest data released by the central bank， new home mortgages increased 121.7 billion yuan in July， compared with 848.2 billion yuan in June.
Overall， the domestic property market has been in a downturn this year， with some areas facing apartment delivery problems， NBS spokesperson Fu Linghui said. But development projects close to delivery dates have remained stable with regards to construction progress， with risks generally controllable.
Moving on to regional highlights
Southwest China's Sichuan Province notified a large number of industrial enterprises in the province to suspend production for six days to guarantee people's livelihood， as high temperatures overstretched local power grid. In a joint announcement released by Sichuan Provincial Economic and Information Department and State Grid's Sichuan Electric Power Company， the province will expand industrial power cuts to 19 cities and prefectures in the province from Monday to Saturday.
Next on industry and company news
China will ramp up coal supply for power generation， as high temperatures and quickened pace of economic recovery have pushed national demand for electricity higher， the NDRC said on Tuesday. In July， China’s power generation reached 805.9 billion kilowatt hours， an increase of 4.5 percent year-on-year， 3 percentage points above the previous month， while electricity consumption rose 6.3 percent from last year.
China is managing the implementation of 102 key projects which are making "smooth progress，” an official from China's top economic planner disclosed during a press conference on Tuesday. The NDRC also moved to speed up issuance and usage of local government special bonds to stimulate investment. By the end of July， the quota of 3.45 trillion yuan of special bonds for project construction this year had almost been fully issued.
China's transport sector reported a 7.5-percent increase to over 259 billion yuan in fixed-asset investment in July， data from the Ministry of Transport showed on Monday. The majority of funds went to road construction， which jumped 6.8 percent year on year to 245.2 billion yuan.
Chinese solar wafer maker Wuxi Shangji Automation said Monday that it will spend 15 billion yuan to build a photovoltaic industrial park in eastern Jiangsu province. The facility， to be located in the city of Xuzhou，物料制作 will have an annual capacity of 25 gigawatts of silicon wafers as well as 24 GW of high-efficiency N-type crystalline silicon photovoltaic cells.
Xiangdao Chuxing， the ride-hailing service backed by China’s largest carmaker， completed a 1 billion yuan fundraising that brings in an autonomous driving startup as new investor， the company said Monday. The latest funding round valued SAIC Motor-affiliated Xiangdao at $1 billion. Largest shareholder SAIC Motor， self-driving company Momenta and Gaohang (Tianjin) Management Consulting led the fundraising.
Earnings reports express
Chinese electric vehicle maker Li Auto said its interim net loss widened by 5.6 percent to 629 million yuan year-on-year， due mainly to a doubling of expenses in sales and its general operations. Still， the company's total revenue amounted to 18.2 billion yuan， representing a 112.4-percent year-on-year increase. In the second quarter this year， Li Auto’s deliveries slid under 30，000 compared to the last two quarters， but increased 63 percent from the same period last year.
Chinese media company China Literature saw its first-half net profit plunge by 78.9 percent year-on-year to 228.5 million yuan， while the adjusted profit inched up by 0.2 percent to 666 million yuan. Revenue of the Tencent-backed firm declined by 5.9 percent to 4.1 billion yuan. Sales at its online business， which accounted for more than half of the total revenue， fell by 9.2 percent to 1.76 billion yuan. However， its monthly average revenue per user for its pay-to-read business increased by 6.6 percent to 38.8 yuan as paid users reached 8.1 million as of the end of June， it said in a filing on Monday.
Chinese hotpot chain Haidilao International Holding fell into the red in the six months ended June 30， the Beijing-based company said late Sunday. It had a net loss of between 225 million and 297 million yuan， compared with 96 million yuan in net profit a year earlier. Revenue likely fell 17 percent to be no less than 16.7 billion yuan. Shares of Haidilao rallied 8 percent on Monday as investors were relieved that the first-half loss wasn’t as big as they feared， after the firm reported a net loss of 4.2 billion yuan for last year.
Switching gears to financial news
China's central bank plans to issue 25 billion yuan worth of bills in Hong Kong next Monday. The central bank bills will be issued in two batches. One batch is worth 10 billion yuan with a maturity of three months. The other batch is worth 15 billion yuan with a maturity of one year， the People's Bank of China said in a statement Tuesday.
China’s holdings of US Treasury bonds shrank for the seventh consecutive month in June to the lowest level in 12 years. China cut its holdings by $13 billion to $967.8 billion in June， the lowest level since May 2010， but it remains the US’ second-biggest creditor， according to data released by the US Treasury Department Monday.
中国间断7个月减持美债：美国财政部美东时光8月15日颁布的2022年6月的财政部国际资本 (TIC) 数据表现，6月，海内持有的美国国债在6月添加51亿美元至7.43万亿美元。个中，中国(海洋)6月所持美债削减130亿美元，至9678亿美元，这是中国间断7个月减持美国国债，局限降至12年来最低。
Wrapping up with a quick look at the stock market
Chinese stocks edged slightly higher on Tuesday， led by gains in photovoltaic and property stocks on policy support. The Shanghai Composite and Shenzhen Component added 0.05 percent and 0.08 percent each. In Hong Kong， the Hang Seng Index closed 1.05 percent lower， as the TECH index dropped 2.03 percent.
Biz Word of the Day
Fixed assets are a form of non-current assets which are company-owned， long-term tangible assets. These assets make up its day-to-day operations to generate income. Being fixed means they can't be consumed or converted into cash within a year. Fixed assets can include buildings， computer equipment， software， furniture， land， machinery， and vehicles.
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