February 02, 2024 01:27 GMT
MNI China Press Digest Feb 02: Yi Gang, Pork, Loans
MNI (BEIJING)
BEIJING (MNI)
MNI picks key stories from today's China press
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Highlights from Chinese press reports on Friday:
- Authorities should guide banks to support the real economy after becoming increasingly cautious lenders, according to Yi Gang, former governor at the People’s Bank of China. Yi, speaking at a recent seminar, said officials need to increase capital investment in society, promote the use of long-term funds such as insurance, pensions, corporate annuities, and further develop equity investment. (Source: Yicai)
- Farmers in China are expecting a short-term increase in pork prices during the Chinese New Year festival, according to the 21st Century Herald. The news outlet said Wumart supermarket had seen pork sales up 10% m/m last week, and analysts reported a decrease of supply due to logistic difficulties during recent bad weather. However Shi Xiangying, a pig researcher at Huarong Rongda Futures believed any price rally could fall back after the festival as demand falls and slaughter volume remains high. (Source: 21st Century Business Herald)
- New yuan loans are expected to exceed CNY4 trillion in January, which would be the second highest level on record, Securities Daily reported citing analysts. Wang Qing, chief analyst at Golden Credit Rating estimated new loans will reach about CNY4.6 trillion, slightly lower than the historical high of CNY4.9 trillion over the same period last year, as banks, driven by regulators, decentralized lending in November and December last year. Aggregate finance may reach CNY5.6 trillion, about CNY400 billion less than January 2023, as the issuance of government bonds scales down, though this will be partly offset by the increasing net financing of corporate bonds, said Wang.
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