MNI China Press Digest Apr 24: PBOC, Growth, Investment

Highlights from Chinese press reports on Wednesday:

• The People’s Bank of China could use secondary market treasury trading for liquidity management and a reserve of monetary-policy tools, a novel approach compared to the quantitative easing (QE) seen from other developed economy central banks, the PBOC-run newspaper Financial News reported citing an unnamed official. China's treasury bond market has become the third-largest in the world and its liquidity has improved, making it possible for the central bank to carry out bond trading on the secondary market, the official said. China's long-term treasury bond yields, which have fallen recently, will move "within a reasonable range" in line with expected economic growth, the official added.
• Policymakers should not relax after the economy's "good start" in Q1, and instead provide further macro support to strengthen the recovery, according to Guan Tao, former official at the State Administration of Foreign Exchange. Guan noted Q1 benefited from low base effects and authorities in future should prioritise a moderate recovery in prices and the real-estate market to stabilise expectations. Consumption recovered better than expected in Q1, but investment needed improvement, Guan added. (Source: Yicai)
• China has completed water conservancy construction worth CNY193.3 billion in Q1, a rise of 4.4% y/y, hitting a historical high, Economic Information Daily reported citing the Ministry of Water Resources. There were 23,500 water conservancy projects implemented across the country in Q1, with a total investment value of CNY4.7 trillion, rising 15.8% and 12.3% y/y, the ministry said.