February 20, 2025 01:54 GMT
MNI China Press Digest Feb 20: Capital Inflows, PBOC, Spending
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 Thursday:
- China’s stock and bond markets simultaneously achieved net inflows of foreign capital in January for the first time since August, attracting over USD10 billion, Shanghai Securities News reported citing data by Institute of International Finance. The stock market saw a net inflow of about USD2 billion, the highest since September, mainly driven by the country’s AI and semiconductor development, while the bond market attracted a net USD8.1 billion flow, as yuan bonds’ low volatility showed increasing attractiveness, the newspaper said citing analysts.
- The People’s Bank of China will need to hold off cutting interest rates or the reserve requirement ratio due to cooling expectations for a U.S. Federal Reserve rate cut and yuan depreciation pressure amid the uncertainty of American tariff hikes, Yicai.com reported citing analysts. The Chinese economy requires further stimulus measures despite some initial signs of stabilising in the housing and stock market. More supporting policies for private enterprises, especially for real estate and foreign-funded companies, will likely be increased in the near term, the newspaper said citing economists.
- China moves to improve the quality of goods and services and consumer rights protection to help boost spending, according to a three-year plan released by five departments. Authorities will support a consumption upgrade by encouraging the replacement of electric vehicles and smart home appliances, as well as creating new scenarios for digital, green and health consumption, the document said. (Source: Securities Times)
240 words