April 26, 2024 02:26 GMT
MNI China Press Digest Apr 26: Stability, Treasuries, Exports
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MNI picks key stories from today's China press
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Highlights from Chinese press reports on Friday:
- The People's Bank of China will effectively maintain currency stability and financial stability, while coordinating security with development and opening up, as well as balancing stabilising growth and preventing risks, according to an article by the Party Committee of the PBOC published on the party-run People’s Daily. The central bank will adhere to “steady and prudent” operations, instead of taking excessive risks beyond its capacity, the article said.
- Any treasury trades by the People’s Bank of China would not equal Quantitative Easing, as the PBOC can either buy treasuries in the secondary market to release liquidity or sell them to guide market interest rates back up, Securities Daily reported citing Feng Lin, director of research at Golden Credit Rating. There is no prerequisite and necessity for the implementation of QE in China, the newspaper said, noting the open market operations and medium-term lending facility rates are 1.8% and 2.5%, far from zero interest rates. The PBOC still has ample room to cut rates and reserve requirement ratios and does not need treasury trades in the short term, the daily said citing analysts.
- Authorities expect Guangdong’s foreign trade to maintain growth in H1 following Q1’s import and exports reaching CNY2.04 trillion, up 12% y/y, the best performance in 11 quarters, according to Zhang Ke, deputy director of the Guangdong General Administration of Customs. In Q1, exporters saw sales of high-end equipment such as ships, machine tools and aircraft grow by 55%, 32% and 78% respectively. The Guangdong Customs Trade Prosperity Survey in March increased 4.6pp from February. (Source: 21st Century Business Herald)
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