MNI China Press Digest, Aug. 12: Bonds, Demand, Food Security

The following lists highlights from Chinese press reports on Wednesday:

The PBOC may have purchased China Government Bonds in July as data showed that CGBs held by "other entities" increased by CNY196.5 billion, about 10 times the previous record gain, Ming Ming, the chief fixed-income analyst with Citic Securities, said in a note. This move by the central bank eases market concerns about the increasing supply of government bonds in H2 as the PBOC has marginally tightened its monetary policy toward normalcy, said Ming, a former central bank official. The yield to maturity of 10-year CGBs will approach the lower range of 2.8% to 3%, Ming said.

China will step up effective investment and boost consumption with a focus on urban areas in response to the government strategy of building a more self-reliant domestic economy, according to Economic Information Daily citing Zhang Liqun, an analyst with the Development Research Center of the State Council. The government will boost investment in education, medical care and community services to meet domestic demand, Guan Lixin, a deputy director with Chinese Academy of International Trade and Economic Cooperation, told the Daily.

Chinese President Xi Jinping called on the country to value food, stop wasteful food consumption and not be complacent about food security, state media including Xinhua News Agency reported. In one of the widest campaigns to change people's behaviors since he took power, Xi said Governments must also step up legislation and supervision to stop wasteful behavior. Xi also said the pandemic exposed risks to China's food security and called on the country to strive for self-sufficiency in food production, Xinhua reported.