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MNI China Press Digest, Aug. 11: Lending Rates, Profits, Jobs

MNI (Sydney)

The following lists highlights from Chinese press reports on Tuesday:

The PBOC is satisfied with current money market rates for moving closer to short-term and medium-term policy rates, Financial News reported citing Li Chao, the chief economist with Zheshang Securities. The central bank said in its Q2 report that it would guide the market rates towards policy rates. The report also suggested the central bank would prioritise sustainable growth, and that future monetary policies would be prudential and normal, the newspaper quoted Chen Jianheng, the chief fixed-income analyst with China International Capital Corporation.

China's commercial banks made combined profits of CNY1 trillion in H1, down 9.4% y/y due to rising costs from recognising and disposing of non-performing loans and greater loan provisions, the Security Times reported on Tuesday citing analysis by the China Banking and Insurance Regulatory Commission. Regulators have reminded banks to redirect the limited profits on capital replenishment to increase their risk-resistance, the newspaper said. The central bank is likely to maintain its policy rate and LPR while continuing to cut the lending rate to further support the real economy, moves which will further reduce banks' net interest margins in Q3, the newspaper reported citing Wen Bin, a researcher from CMSB.

Chinese businesses recruited 4.41 million people in Q2, down 795,000 from the previous quarter, while the number of people still looking for jobs rose 91,000 from Q1 to 3.37 million, the People's Daily reported citing data from the Ministry of Human Resources and Social Securities. The Daily's report quoted Ding Dajian, an analyst with China Labour Research, who said the export sector had downsized its demand for labour due to the weakened global economy. As the pandemic eased in China, more people returned to the labor market in Q2, Ding said. Government data showed strong demand for workers in marketing, food catering and delivery, the Daily reported.

MNI Sydney Bureau | +61-405-322-399 | lachlan.colquhoun.ext@marketnews.com
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MNI Sydney Bureau | +61-405-322-399 | lachlan.colquhoun.ext@marketnews.com
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