MNI China Press Digest Apr 25: Stability, Bond, Japanification

Highlights from Chinese press reports on Thursday:

• Authorities’ financial work must adhere to the principle of stability, emphasizing macroeconomic control, financial development, reform, and supervision, as well as risk management, according to an article from the Central Financial Work Commission published in the People's Daily, a party-run publication. Financial work must support the stabilization of expectations, economic growth, and employment, while enhancing the efficiency of financial resource allocation and minimizing fund idleness.
• Long-term government bond yields will rebound with the upcoming issuance of ultra-long-term special treasury bonds, easing the current "asset shortage", the Securities Daily reported citing analysts. Additionally, faster sales of local government special bonds may ease the sharp downward deviation of long-term treasury bond yields from policy rates, said Feng Lin, research director of Golden Credit Rating. Buyers' increased demand for long-term bonds amid bullish expectations for the bond market has driven long-term bond yields down, with the 10-year and 30-year treasuries closing at 2.2727% and 2.4791% on Wednesday.
• Authorities should implement proactive policy support to manage China's structural transformation and avoid “Japanification”, Ouyang Hui, distinguished dean of finance at the Cheung Kong Graduate School of Business said. Ouyang noted Japan entered stagnation due to the government's insufficient response to a cyclical recession, and Chinese authorities needed to take stronger action to handle non-performing assets and resolve real estate and local debt risks. (Source: Yicai)