MNI China Press Digest Aug 21: PBOC, A Shares, Economy

Highlights from Chinese press reports on Monday:

• The People’s Bank of China has called for stronger coordination between departments to prevent and defuse debt risk, according to Yicai. At a recent meeting with the State Administration of Financial Supervision, policymakers agreed to enhance the stability of financial support for the real economy and focus on assistance for SMEs, green development, technological innovation, and manufacturing. Leaders noted the country was exhibiting a wave-like pattern of economic recovery. The meeting was attended by Pan Gongsheng, party secretary and president at the PBOC.
• The A-share market represents more opportunities than risks as it nears its bottom with new support policies taking affect, according to a report by China International Capital Corporation. The China Securities Regulatory Commission unveiled a package of measures Friday to boost the equity market's "vitality, efficiency and appeal". Measures included a reduction in trade costs, share buyback support and the development of equity funds. The relaxation of registration requirements for index funds will help increase long-term funds in the market, conducive to the establishment of value investing and promoting more reasonable prices, said Chen Li, chief economist at Chuancai Securities. (Source: Economic Information Daily)
• China’s economy shows signs of recovery despite short-term difficulties, according to economists interviewed by Securities Daily. Economists noted high-tech industrial investment increased 11.5% y/y, 8.1 pp more than total fixed asset investments, showing industrial transformation had developed quickly. Additionally, in May and June the surveyed urban unemployment rate was lower than that of the same period last year and CPI inflation remained relatively stable. Economists expect the economy to stabilise by the end of Q3, and reach the annual growth target of 5%.