MNI China Press Digest, Sep 24: Bonds, Companies, Consumption

MNI (Beijing) - The following lists highlights from Chinese press reports on Thursday:

Government special-purpose bonds quotas may increase by CNY3 trillion to 3.5 trillion in 2021, lower than the increase of CNY3.75 trillion this year as the economy recovered and the policy returns to normal, according to the 21st Business Herald citing Yang Xiaoduo, a senior analyst with Bridata. The Herald also quoted Ma Jun, and an anonymous chief-income analyst, who said the quotas may be lower than in 2020 as the government reined in the easing policies. The comprehensive fiscal resource of the government is expected to be CNY27.7 billion at the end of this issuance process and the debt ratio would be 94%, approaching the red line of 100%, the Herald reported citing data from the Finance Ministry.

China should focus on expanding consumption to further the economic recovery as a potential boom in real estate prices and credit loans will cause debt risks and suppress consumption among young people and the lower-middle class, Peng Wensheng, the chief economist from CICC wrote in the commentary posted on the People's Daily on Thursday. China should prevent housing speculation and the old development model of using real estate and investment to drive up demand, wrote Peng. Future monetary policies should play a bigger role in income distribution and providing transfer payments to the poor, Peng wrote.

China will allow more strategic investments from foreign investors in public companies and encourage public companies to perfect their systems for asset restructuring, acquisitions, and split listings, Premier Li Keqiang said at the weekly executive meeting of the State Council. Public companies should also increase the quality of disclosures, said Li. China will strengthen the supervision and punishment of behaviors such as market manipulation and insider trading, the statement from the meeting said.