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MNI China Press Digest Dec 23: PBOC, Consumption, Panda Bonds

MNI picks key stories from today's China press.
Central Bank NewsPolicy NewsPBOCHomepageAPACChinaEM Policy NewsChinaEM Central Bank NewsPeoples Bank of ChinaGlobalStoryRegion

MNI (BEIJING) - Highlights from Chinese press reports on Monday:

  • The People’s Bank of China is likely to cut the reserve requirement ratio by 0.25-0.5 percentage points by year-end to release up to CNY1 trillion long-term funds, which will also meet the liquidity needs during the Chinese New Year in January, National Business Daily reported citing Wang Qing, analyst at Golden Credit Rating. Under the tone of “moderately loose” monetary policy, the PBOC is expected to cut the policy interest rate by 0.5 pp in 2025, higher than 2024’s 0.3 pp cut, said Wang, noting that this will guide down Loan Prime Rate quotations. The interest rates of various structural monetary tools will also be lowered in due course, Wang added.
  • China should take all necessary measures to boost consumption next year including increasing financing support for the real economy and implementing fiscal subsidies and tax incentives, Yicai.com reported, citing Wang Zhongmin, former vice chairman at National Council for Social Security Fund. Authorities should prioritise consumption over investment by allocating additional funds to promote consumer spending, said Yang Weimin, deputy director of the Economic Affairs Committee of the 13th CPPCC National Committee, adding that it is also necessary to substantially boost income of low-income groups and increase policy support for consumer-related industries.
  • The issuance of panda bonds and dim sum bonds are expected to keep growing in 2025, amid large maturities of Chinese companies’ overseas debt and the PBOC’s moderately loose monetary policy stance, Securities Times reported citing market insiders. The issuance of panda bonds reached CNY194.8 billion as of Dec 19, a rise of 26% y/y, which is expected to hit a record high by year-end. Among the issuers, foreign investors were about three times the volume of last year, and Germany has topped panda bond issuance outside of Hong Kong, the newspaper said.
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MNI (BEIJING) - Highlights from Chinese press reports on Monday:

  • The People’s Bank of China is likely to cut the reserve requirement ratio by 0.25-0.5 percentage points by year-end to release up to CNY1 trillion long-term funds, which will also meet the liquidity needs during the Chinese New Year in January, National Business Daily reported citing Wang Qing, analyst at Golden Credit Rating. Under the tone of “moderately loose” monetary policy, the PBOC is expected to cut the policy interest rate by 0.5 pp in 2025, higher than 2024’s 0.3 pp cut, said Wang, noting that this will guide down Loan Prime Rate quotations. The interest rates of various structural monetary tools will also be lowered in due course, Wang added.
  • China should take all necessary measures to boost consumption next year including increasing financing support for the real economy and implementing fiscal subsidies and tax incentives, Yicai.com reported, citing Wang Zhongmin, former vice chairman at National Council for Social Security Fund. Authorities should prioritise consumption over investment by allocating additional funds to promote consumer spending, said Yang Weimin, deputy director of the Economic Affairs Committee of the 13th CPPCC National Committee, adding that it is also necessary to substantially boost income of low-income groups and increase policy support for consumer-related industries.
  • The issuance of panda bonds and dim sum bonds are expected to keep growing in 2025, amid large maturities of Chinese companies’ overseas debt and the PBOC’s moderately loose monetary policy stance, Securities Times reported citing market insiders. The issuance of panda bonds reached CNY194.8 billion as of Dec 19, a rise of 26% y/y, which is expected to hit a record high by year-end. Among the issuers, foreign investors were about three times the volume of last year, and Germany has topped panda bond issuance outside of Hong Kong, the newspaper said.