MNI China Press Digest Aug 27: RRR Cut, Growth, Green Bonds

The following lists highlights from Chinese press reports on Friday:

• The People's Bank of China has sent stronger signals for loosening credit with another round of RRR cut very likely, the China Securities Journal said citing analysts. The central bank, jointly with five other agencies, urged more financial support for rural revival and poverty alleviation, the latest sector to receive loose credit after innovation, manufacturing, green development and SMEs, the newspaper said. A loose-credit environment is being solidified and structural policy tools are expected to lead, the journal said. However, policies are likely to remain tight for local government financing vehicles and the property industry, said the newspaper.
• China must take precautions to stabilize growth and ensure employment given the possible declines in real estate investment and exports demand in H2, especially in Q4, the Economic Information Daily said in a front-page commentary. China should speed up the issuance of local government special bonds to boost infrastructure investment and maintain a relatively loose monetary policy to support SMEs in difficulties, the newspaper said. China needs to boost demand and investment, the daily said. As longer term strategies, China should find new growth drivers and reform to activate the rural land market and develop metropolitan circles, as well as reduce the costs of raising children, further liberalize market access for power, telecommunications, railways, and petroleum, the newspaper said.
• China's green bond issuance scale in the first half exceeded the total of last year, including CNY67 billion in July, the 21st Century Business Herald reported. In H1, central-government SOEs accounted for about 57% of the total raised funds, while local SOEs accounted for 40%, the newspaper said. Carbon-neutral bonds launched by clean transportation and new energy industry in February were popular, the newspaper said. Other new types of green bonds emerged since this year included sustainability-linked bonds, rural revitalization bonds, and blue bonds, the newspaper said.