MNI China Daily Summary: Thursday, June 27

EXCLUSIVE: China’s high-tech and green-transition ambitions will boost manufacturing’s role as an economic driver, while clearer industrial standards and deepened international connections represent crucial factors that will help Chinese companies increase their global market share, a policy advisor told MNI in an interview.

POLICY: China's Communist Party will hold its long-delayed third plenum from July 15-18 in Beijing, announced by the Politburo meeting on Thursday, state-run Xinhua News Agency reported.

POLICY: Authorities will deepen reforms to support China's economy at the upcoming third plenum, Huang Hanquan, president of the Chinese Academy of Macroeconomic Research said on Thursday.

LIQUIDITY: The PBOC conducted CNY100 billion via 7-day reverse repo, with the rates unchanged at 1.80%. The operation has led to a net injection of CNY80 after offsetting the CNY20 billion maturity today, according to Wind Information.

RATES: The seven-day weighted average interbank repo rate for depository institutions (DR007) increased to 2.1217% from 1.9700% on Wednesday, Wind Information showed. The overnight repo average increased to 1.8764% from the previous 1.5000%.

YUAN: The currency strengthened to 7.2689 against the dollar, from 7.2666 at Wednesday's close. The PBOC set the dollar-yuan central parity rate higher at 7.1270 , compared with 7.1248 set on Wednesday.

BONDS: The yield on 10-year China Government Bonds was last at 2.2100%, down from Wednesday's close of 2.2250%, according to Wind Information.

STOCKS: The Shanghai Composite Index fell 0.90% to 2,945.85, while the CSI300 index was decreased 0.75% to 3,454.12. The Hang Seng Index declined 2.06% to 17,716.47.

FROM THE PRESS: China will launch pragmatic measures to promote the high-quality development of the private economy's market access, factor acquisition, fair law enforcement, and rights protection, said Zheng Bei, deputy director at the National Development and Reform Commission in a speech, Yicai.com reported. The authority will promote equal entry to industries and businesses outside the negative list, as well as fair rules in the field of tendering and bidding, the report said. Also, it will accelerate the formulation of the Private Economy Promotion Law, the report said.

Beijing city on Wednesday moved to lower the minimum down-payment ratio to 20% for first-time homebuyers from the previous 30%, the last first-tier city to decrease the policy floor, 21st Century Business Herald reported. The lower limit for mortgage rates of first houses was reduced to 3.5%. For local families with two or more children, their purchase of a second home will enjoy the same loan policy as first-time buyers, the newspaper said.

Authorities have unveiled 17 measures aimed at promoting high-quality venture capital, including broader funding sources and improved market environment, Li Chunlin, deputy director of the National Development and Reform Commission told reporters. The NDRC will provide VC firms with opportunities to invest in high-quality projects in line with national development goals, and guide long term funds into the sector, Li continued. Li Mingxiao, director at State Administration of Financial Supervision said the government will optimize the role of insurance funds in VC.