MNI China Press Digest Aug 24: Liquidity, Listing, BRICS

Highlights from Chinese press reports on Thursday:

• The People’s Bank of China will likely inject liquidity via large-scale reverse repo operations, as the issuance of government bonds will remain high for the rest of the month and banks continue to increase credit supply, said Feng Lin, analyst at Golden Credit Rating. Since Aug 15, the PBOC has injected a net of CNY691 billion via reverse repo, maintaining a large amount of injection even after the tax payment peak. The daily average of DR007 was 1.88% from Aug 15-22, higher than the seven-day reverse repo rate of 1.8%, indicating a relatively tight state of liquidity. (Source: Securities Daily)
• China’s top securities regulator will support overseas listing channels of mainland firms in Hong Kong and facilitate the entry of medium and long-term funds into the market, according to Li Chao, vice chairman at the China Securities Regulatory Commission. Li said in a recent speech authorities will support the introduction of treasury bond futures trading in Hong Kong and enhance the city's position as a risk management and international financial centre. (Source: Yicai)
• BRICS nations should oppose decoupling and economic coercion as the group works towards deeper economic, trade and financial cooperation, according to President Xi Jingping. Speaking at the BRICS summit in South Africa, Xi said the group should promote deeper economic exchanges as the global economy's recovery was not stable and may grow less than 3% this year. The world faced increased uncertainty and instability, and BRICS will focus cooperation on the digital economy, green development, artificial intelligence and vocational training. (Source: Yicai)