MNI China Press Digest Sep 8: Digital Investment, Forex, WMP

The following lists highlights from Chinese press reports on Wednesday:

• China is likely to invest more in digital networks to support the growth of a digital technology-based economy, Yicai.com reported interpreting comments by Vice Premier Liu He that urged "promoting infrastructure construction moderately ahead of time." Such infrastructure should include 5G, data center, cloud-based computing, AI and vehicle networking, the newspaper said citing Wei Liurong, an engineer with China Academy of Information and Communications Technology. Direct investments in seven major "new infrastructure" including 5G and UHV will reach about CNY10 trillion by 2025, driving cumulative investment to over CNY17 trillion, the newspaper said.
• China's foreign exchange reserves will remain at a relatively high level in September as exports show resilience helped by recovering external demand, while the U.S. dollar index and U.S. treasury yield may be little changed, Yicai.com reported citing Zheng Houcheng, research head of Yingda Securities. China's FX reserves stood at USD3.32 trillion by the end of August, down by USD3.8 billion from a month ago. The decrease was mainly due to the depreciation of non-U.S. dollar currencies and the decline in major bond prices, the newspaper said citing Wen Bin, chief researcher of China Minsheng Bank. Trade and cross-border capital flows still supported FX reserves, indicating solid economic conditions and balance of payments, the newspaper cited Wen as saying.
• Chinese commercial banks that have not set up a wealth management subsidiary may not be able to add new wealth management services as authorities try to limit financial risks growing out of the sector, the 21st Century Business Herald reported citing three independent sources. Medium and small-size banks are gradually withdrawing from wealth management business, as local banking regulations in the first half have limited their growth, the newspaper said. This may significantly impact small banks, and may cause unemployment, as the scale of wealth management business generally accounts for 10-30% of the entire bank's assets, the newspaper said citing an industry insider. In the past, small banks carried out much asset management business through outsourcing as they lacked resources and expertise, the newspaper said.