MNI China Press Digest, Aug 31: Funding Costs, Tibet, R&D

The following lists highlights from Chinese press reports on Monday:

Fiscal spending by the Chinese government will pick up in September, releasing large amounts of liquidity into the banking system and prompting a fall in financing costs, according to the China Securities Journal citing Ming Ming, the chief fix-income analyst with Citic Securities. The PBOC will also inject liquidity to offset the impact of expected large government bond issuances, Ming said.

Chinese Chairman Xi Jinping has promised major infrastructure projects and public service facilities for Tibet, including the Sichuan-Tibet Railway, as part of his call for high-quality development and poverty alleviation efforts, the China Daily reported. In a speech on Saturday, Xi also called for efforts to ensure national security, peace and stability, stronger border defense and frontier security, the Daily reported.

China's publicly listed companies should spend more on R&D and initiate new investments after companies displayed resilience during COVID-19, reported the Shanghai Security News on Monday. The combined H1 income of 3,986 public companies fell 2.87% y/y to CNY 23.46 billion, equivalent to half of China's GDP, the newspaper said. The capital market rebound had provided optimal financing opportunities and created an innovation-friendly environment, the newspaper reported citing an unidentified industry participant.