China Can Further Cut Banks' RRRs to Inject More Liquidity: Herald

China has room for further reducing banks' reserve requirement ratios to boost liquidity given the high RRRs held by most banks, the 21st Century Business Herald reported citing Lian Ping, chief economist at Zhixin Investment Research Institute, who commented after the PBOC cut them by 50 bps across the board last week. For H2, manufacturing investment may become an important driver of economic recovery as industrial companies need to replenish inventories, while financial support to manufacturers will increase, Lian was cited as saying. On consumption, it may be difficult for retail sales to return to pre-pandemic levels due to the sporadic domestic outbreaks of Covid-19 cases, with retail sales possibly growing 10% y/y in 2021, the newspaper cited Lian as saying.