MNI China Press Digest April 24:Guangdong, CPI,Foreign Capital

Highlights from Chinese press reports on Monday:

• Guangdong’s GDP grew 4% in Q1 showing "challenges remain to meet annual targets," according to the Guangdong Statistics department. "The economy improved but still requires more support to stabilise the recovery”, the department said. Primary industry rose 4.1%, secondary industry edged up 2.4% and tertiary industry increased 5%. Manufacturing output gained 1.2%, with service industry rising 5%, while total retail sales increased 5.1%. Fixed assets investment was up 7.4%, real estate development dropped 8.2%, and infrastructure investment climbed 13.4%. (Source: 21st Century Herald)
• China’s economy will not fall into a deflationary spiral, despite recent subdued CPI numbers, as consumption and investment are still in the initial phase of recovery and will gather pace, according to Zhang Bin, deputy director at the Chinese Academy of Social Sciences. Zhang said authorities would implement further policy support to increase market momentum and avoid deflation. He noted high credit growth in Q1 had helped expand overall demand. Another expert said low CPI data was due to last year's high base effects when the Russia, Ukraine conflict began.(Source: Financial Journal)
• China expects more foreign inflows of capital into its bond and equity markets, with current holdings considered “quite low”, according to Wang Chunying, deputy director at the State Administration of Foreign Exchange (SAFE). Speaking at a recent press conference, Wang said China’s economic cycle runs counter to major developed economies, which allows offshore investors a chance to diversify risk. RMB assets are highly liquid and carry stable returns, he said. Looking forward, China's further economic rebound and financial market open can lead to stronger foreign capital inflows. (Source: Securities Daily)