Company: SCAG
Filing Date: 2025-01-06
Form Type: 424B3
Source: 0001213900-25-001215
Chunk: 905

Company: Scage Future
Filing Date: 2025-01-06
Form: 424B3
Chunk 905
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 of 2023 to 4.5% year-on-year. The rebound reflects the lifting of COVID-19-related restrictions. In-person services, including catering, accommodation, tourism, and entertainment, which were restricted during lockdowns, rebounded strongly. In contrast, consumption of goods, which continued even during lockdowns, remains weak. Despite the current momentum in services consumption, overall consumption is constrained by relatively high unemployment rates and a large number of graduate students entering the labor market this year. Investment growth is firming as infrastructure investment is picking up, and new support measures contain the contraction of real estate investment. China is relatively well insulated from global food and energy market shocks. China has a large share of food in its consumption, but this has limited import content. Large grain reserves and export restrictions in the form of quotas will continue to mitigate the impact of rising global grain prices on domestic inflation and reduce the risk of shortages. Domestically produced coal is used for heating, which is not affected by higher prices in global markets. However, China is more dependent on oil and gas imports. Replacing part of crude oil imports by discounted Urals oil from Russia is containing inflationary pressure and LNG reserves are being refilled from Russian sources. The revival of demand may increase price pressures, but the overall inflation environment remains benign. Monetary policy continues to support the recovery and ensure adequate liquidity. While the benchmark lending rate remained stable in recent months, the required reserve ratio has recently been cut slightly. Capital outflows and currency depreciation during 2022 were halted by revived confidence following the opening of the economy. Market rates have fallen more than the benchmark rate. Following the coordinated cut of the deposit rate by major state lenders in September 2022, a new mortgage rate adjustment mechanism for first mortgages was introduced in early 2023. This allows local authorities to decide whether to remove the mortgage interest floor in cities in which new housing prices decrease for three consecutive months. More stringent implementation of credit quotas for pre-sold housing, lower provident fund lending rates for first-time buyers, and other measures have helped the property ____________ 3International Monetary Fund, World Economic Outlook Update,July 2023. 4Organisation for Economic Co-operation and Development, OECD Economic Outlook, Volume 2023 Issue 1: Preliminary Version,2023. Annex D-1-2 market bottom out and will support the recovery of the property sector. The rebound, however, will be moderate as restrictions, including on eligibility to purchase real estate, continue to suppress