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MNI China Press Digest Dec 2: Growth, Covid, Yuan,

MNI (Singapore)
MNI (Beijing)

The following lists highlights from Chinese press reports on Friday:

  • China should aim for an average annual growth rate of 5.5% in the next five years, with consumption, real estate, and the platform economy cited as three areas affecting growth, according to a blog post by China Finance 40 Forum citing Yang Weimin, deputy director of Committee for Economic Affairs of the National Committee of the Chinese People’s Political Consultative Conference. China’s demand stimulus should focus more on boosting consumer spending than expanding investment, with more tax and fee cuts, and financial policies to benefit residents. A new comprehensive and long-term real estate policy should quickly be formulated with multi-department coordination following the recent financial support to the sector. China should also accelerate the introduction of specific measures to support the development of the platform economy to stabilise expectations, said Yang.
  • China's top policymakers have urged authorities to undertake more targeted Covid control measures, Yicai.com reported following the National Health Commission meetings held by Vice Premier Sun Chunlan over the past two days. Sun said the vaccination rate of the population exceeded 90%, with people’s health awareness having improved significantly and the severity of the Omicron virus having weakened. This has created the conditions for further optimising control measures, she said. Many major cities have started to loosen controls, including Guangzhou, which lifted temporary control areas, and Chongqing, which reopened central districts. Beijing and Zhengzhou have allowed people to skip Covid testing should they have no demand for going outdoors, Yicai said.
  • The rally in the yuan against the dollar in late November can continue as the outlook for China's economy improves, said Securities Daily citing experts. It said recent yuan resilience reflected improving sentiment following policy changes that optimised epidemic controls, stabilised the property market, and promoted strong domestic fundamentals. Citing experts, the newspaper said the expected December slowdown in Fed rate hikes will weaken the dollar and drive capital inflows into yuan assets. Due to global uncertainties and weakening exports, businesses should use financial derivatives to manage risk, and increase the use of the yuan in foreign trade transactions, the newspaper said.
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