January 15, 2025 01:41 GMT
MNI China Press Digest Jan 15: Capital Markets, M2, Economy
MNI picks keys stories from today's China press
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Highlights from Chinese press reports on Wednesday:
- Authorities will introduce practical guidelines aimed at reforming the M&A and restructuring market, as well as implement policies to attract pension, insurance and financial management funds to the capital market, Shanghai Securities News reported, citing expectations from Tian Xuan, director at the National Institute of Financial Research at Tsinghua University. Fund industry reforms will likely include reducing fees and increasing investment products such as ETFs, Tian added.
- China’s M2 money supply reached CNY313.5 trillion in December, up 7.3% y/y, driven by the migration of government deposits and wealth management funds to resident and corporate deposits, according to Mingming, chief economist at CITIC Securities. Looking ahead, new credit and social financing are expected to rise y/y as authorities adopt a moderately easing monetary policy and guide financial institutions to increase credit supply, said Wang Qing, chief macro analyst at Orient Securities. (Source: Securities Daily)
- Authorities will focus on boosting consumption and domestic demand in 2025 to address low CPI and this year’s expected slowdown in exports, according to Sheng Songcheng, professor of economics and finance at the China Europe International Business School. Sheng said authorities may increase the general public budget deficit rate 4% and expand the scale of the old-for-new subsidy scheme. Based on current trends, Sheng anticipated the decline in the real-estate sector will further narrow this year before stabilising in 2026.
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