MNI China Press Digest Aug 19: Stimulus, Bond Rules, Taiwan

The following lists highlights from Chinese press reports on Thursday:

• China's regional governments are accelerating infrastructure and low-carbon projects and urging better use of special-purpose bonds to ensure economic targets in the second half are met, the Economic Information Daily reported citing regional National Development Reform Commission officials. Investments are crucial as virus outbreaks have slowed consumption while exports are more uncertain due to the global resurgence of the pandemic, the newspaper said citing chief economist Lian Ping of Zhixin Investment Research Institute. China needs more policy support for growth and employment as growth drivers, manufacturing and consumption continue to weaken, the newspaper said.
• The PBOC issued a guideline to promote the high-quality development of corporate bonds on Wednesday, restricting excessive bond issuance by highly leveraged companies, strengthen the management of bond-raised funds and prohibit underwriters from using the third-party to subscribe for the bonds issued by itself, the China Securities Journal reported citing a document on PBOC website. Bond issuance should conform to the country's macroeconomic development and industrial policies, and match the needs of the real economy, the newspaper said. The guideline also urges to accelerate the reform of local government financing vehicles to prevent the spread of hidden debt risks, while local government must not raise debts via corporate bonds or provide guarantees or repaid corporates' maturing debts, the newspaper said.
• As long as China grows in strength and prepares fully for military struggles and has a firm will to unify, there is no doubt the U.S. is doomed to eventually abandon Taiwan, the Global Times said in an editorial after National Security Advisor Jake Sullivan reaffirmed U.S. commitment to protecting Taiwan after its Afghanistan pullout rattled Taiwan. There is no official document in the U.S. requiring it to use troops to defend Taiwan, the nationalist newspaper said. China is a nuclear power with full preparedness for an offshore military struggle, which makes the U.S. unsure of a victory in a cross-Straits war, and the US military and academic communities are pessimistic about the result of a cross-Straits war, the newspaper said.