MNI China Press Digest Feb 26: Local Debt, Stock Market, WTO

Highlights from Chinese press reports on Monday:

• Chinese authorities will likely issue another CNY1-1.5 trillion special refinancing bonds to swap out more implicit local-government debt in 2024, said Feng Lin, senior analyst at Golden Credit Rating. Ming Ming, chief economist at CITIC Securities noted the upper limit of the issuance of special refinancing bonds this year is CNY1.43 trillion in theory, and any additional issuance would depend on debt-resolving progress. The State Council executive meeting said last Friday local-government debt risks have alleviated, laying a solid foundation for the next phase of work. (Source: Securities Daily)
• A further Chinese stock market rebound would require a positive change to investor sentiment following the Shanghai Composite Index tipping the 3,000-psychological-mark with the total market value of over 5,300 A-share listed companies increasing CNY9.4 trillion in the past eight trading days, China Times reported citing analysts. Solid holiday consumption, a greater-than-expected cut to the Loan Prime Rate and regulators’ vows to strengthen regulation drove the rally. The market is entering a rebound trading window, and the main allocation should still focus on high-quality blue chips and science and technology growth, according to a report by CITIC Securities.
• China supports the restoration of the World Trade Organisation's dispute resolution mechanism, Minister of Commerce Wang Wentao has told WTO Director General Ngozi Okonjo-Iweala. Meeting at the Ministerial Conference in Abu Dhabi, Wang said China has been working with the WTO while defending its legitimate rights, and supports incorporating investment facilitation agreements into the legal framework of the WTO. Okonjo-Iweala hoped China would play a leading role in negotiations going forwards. (Source: MOFCOM Website)