MNI China Press Digest Dec 10: Credit, Inflation, Australia

The following lists highlights from Chinese press reports on Thursday:

China may tighten its credit expansion as it normalizes its monetary policy and redirects capital to the real economy, reported Securities Times citing Wang Qing, an analyst from Golden Credit Rating. The scale of China's social financing and new loans was likely to drop in December to ensure new credit this year totals around CNY20 trillion, and that social financing is within CNY35 trillion, Wang said. Wang Yifeng, an analyst from Everbright Securities told the Times that new credit growth in Q1 was likely to rise given steady demand and increasing credit supply before the Lunar New Year, while the supply side faced marginal tightening.

China should keep its current monetary policies, despite registering -0.5% CPI in November, as the weakening inflation was largely caused by falling food prices while core demand remains strong, the China Securities Journal said citing economists. The PPI may strengthen in December and return to positive by Q1 after recording -1.5% in November, supported by stronger domestic demand, the newspaper said.

Australia will pay a price if its unreasonable China policy fails to change, the Global Times, a tabloid owned by the People's Daily, said in an editorial late Wednesday. Australia has been a "lap dog" of the U.S. in attacking China, the newspaper said. Canberra should seek to improve ties with China in 2021 in line with Australian public opinion and the views of the Opposition party, the Times editorial said.