MNI China Press Digest Dec 28: GDP, Ant Group, Consumer Debt

The following lists highlights from Chinese press reports on Monday:

China's GDP is projected at 8% growth in 2021 given that 2020 is a low base for comparison, China Securities Journal reported citing Zhu Baoliang, chief economist from the State Information Center of China. Infrastructure will continue to receive a funding boost given this year's unused balance from special bond issuance, and because the government allows the balance to be used as project capital, Zhu said. Retail sales may gain 12% growth in 2021 as vaccines enable further movement and as incomes rebound, Zhu said. Export growth in H1 of 2021 should remain high as China's competitors remain constrained by the pandemic, the newspaper reported citing Hua Changchun, chief economist from Guotai Junan Securities.

China's top securities regulator will continue to probe and increase the supervision of securities and financial service institutions linked with Ant Group, the Securities Times reported citing unidentified sources. PBOC Deputy Governor Pan Gongsheng said Ant Group must return to its origins in online payments, and China would continue to encourage and support fintech companies to innovate as long as they serve the real economy and comply with prudential supervision. Future supervision will focus on breaking monopolies and enforcing licensing compliance, according to a statement on the PBOC website on Sunday.

China should curb the rapid rise of personal debt levels after the overall macro leverage ratio ballooned 270.1% this year to the end of Q3, up 24.7 percentage points from the end of 2019, the Economic Information Daily wrote citing data from the National Institution for Finance and Development. China should increase alternative housing supply to stabilize home prices and stop surging mortgage debts, wrote the newspaper. Consumer demand shouldn't be at the expense of surging consumer debt, the Daily wrote, and China should improve healthcare, living support and other aspects of the social safety net.