MNI China Press Digest Jan 24: Stabilisation Fund, GDP, Grain

Highlights from Chinese press reports on Wednesday:

• Market insiders have called for over CNY1 trillion of stabilisation fund to inject incremental liquidity into the A-share stock market and help reverse pessimistic investor expectations, according to various reports. 21st Century Business Herald noted, while there are no obvious negative factors that could trigger a market crash, the Shanghai Composite Index continued to fall to a three-year low of 2,724 points on Wednesday. The scale of the funds should be CNY2-5 trillion, as the size of such funds is mostly between 3-6% of the total market value, according to a report by CITIC Securities.
• Shanghai Securities News reported 20 provinces have announced their economic growth targets for 2024, with most of them aiming at 5-6% GDP gains. Beijing, Shanghai and Guangdong, the first provinces with a GDP exceeding CNY13 trillion last year, have all set the target at 5%. An official from Beijing city said “about 5%” growth is required to stabilise expectations, boost confidence and achieve employment and residential income goals. Meanwhile, local authorities have emphasised high-quality development by including other indicators related to technological innovation, and environmental protection.
• China will boost crop yields and stabilise farms to ensure grain output remains above 1.3 trillion catties in 2024, Pan Wenbo, director at the Ministry of Agriculture told reporters at a press conference. China produced a record high of 1.39 trillion catties in 2023, up 17.76 billion y/y, overcoming severe flooding and droughts across the country, added Deng Xiaogang, deputy minister at the Ministry of Agriculture. The 21st Century Herald noted rural residents per capita disposable income reached 21,691 yuan in 2023, up 7.6% y/y, according to National Bureau of Statistics data.