MNI China Press Digest, Sep 7: Aug Trade, New Loan Data, Bonds

The following lists highlights from Chinese press reports on Monday:

China's foreign trade should continue its momentum in August as company's back orders cleared and domestic consumption rose, reported Securities Daily citing analysts. Fu Yifu of the Suming Financial Research Institute told the Daily that China continues to explore new growth opportunities with other nations through the Belt and Road Initiative. These included countries with existing free trade agreements with China and others that have the pandemic relatively under control, Fu said. Total foreign trade value in July was CNY 2.93 trillion, up 6.5% y/y.

New loans issued in August could be as high as CNY1.2 trillion with aggregate financing to the economy at CNY2.75 trillion, up from CNY992.7 billion and CNY1.69 trillion in July, the Securities Daily reported citing estimates by analysts. Infrastructure and property investment may have quickened, contributing to more corporate and individual loans, the newspaper said citing Tao Jin, a researcher at the Suning Institute of Finance. Local government bond issuance in August was close to this year's peak in May, increasing the scale of social financing, Tao said. The PBOC is expected to release the loan data some time this week.

China is accelerating the issuance of local government bonds to boost investment with CNY1.2 trillion sold in August, the second highest monthly offering this year, the Shanghai Securities Journal reported. August is suitable for construction, so more funds were invested in shantytown and urban community renewal projects where the economic impact took place immediately, the newspaper said citing Zhang Yiqun, a researcher at the Society of Public Finance of China. Among CNY4.96 trillion in local government bonds issued in the first eight months, about 30% are used for infrastructure projects, the newspaper said.