MNI China Press Digest Apr 10: Growth, SMEs, Photovoltaic Cells

Highlights from Chinese press reports on Wednesday:

• China should maintain macro policy intensity in Q2 following Q1's likely strong performance, Securities Times said in a commentary. Residents’ willingness to increase leverage for home purchases remains weak and infrastructure construction requires further fiscal support to consolidate, which makes maintaining relatively low interest rates necessary, the newspaper said. High real interest rates are still restricting the effectiveness of cuts and there is still room for further use of monetary easing tools to maintain ample liquidity, the Times said.
• The China SME development index reached 89.3 in Q1, up 0.2 points from the previous quarter, but below the prosperity threshold of 100, according to the China Association of SMEs. The sub-index for the industrial sector rose 0.4 points, while construction fell by 0.2. The data showed companies still needed policy support to optimise development and enhance momentum, according to Liu Xiangdong, deputy director of the Center for International Economic Exchanges. Ma Bin, vice president of the China Association of SME, said firms had benefited from the Spring Festival holiday and an acceleration in production. (Source: Securities Daily)
• Several solar cell manufacturers have recently terminated photovoltaic projects due to the long payback period of new production capacity and the significant capital investment, Yicai.com reported citing Zhang Xiaobin, executive vice president of Shandong Solar Energy Industry Association. Each production process has varying degrees of capacity surplus, but market demand has continued to grow this year stimulated by the low price of photovoltaic modules, said Lv Jinbiao, consulting expert of China Photovoltaic Industry Association. Lv said maintaining cash flow and strictly controlling new investments are the main tasks in 2024 as industry-wide low profits or losses have become widespread.