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MNI China Press Digest Jan 3: NDRC Support, SAFE, PBOC Meeting

MNI (Singapore)
MNI (Beijing)

Highlights from Chinese press reports on Tuesday:

  • China’s difficulties in 2022 were greater than anticipated but the economy will rebound in 2023, according to Zhao Chenxin, Deputy Director of the National Development and Reform Commission (NDRC). Zhao said the NDRC will support projects linked to local government bonds, and will accelerate the release of special loans for equipment renewal and promote growth in manufacturing. Foreign investment should be encouraged, and the catalogue of accessible industries should be revised. Private enterprise and investment will be supported and guided to participate in national development strategies. Zhao’s comments were reported in an article by the 21st Century Business Herald.
  • China will use exchange rate policy tools to promote foreign trade, expand foreign capital stock and to manage its FX reserve assets in 2023, according to Pan Gongsheng, director of the State Administration of Foreign Exchange (SAFE). Pan said SAFE is ready to support cross-border financial cooperation under trade agreements such as the CPTPP and Digital Economy Partnership Agreement. China will develop foreign access to its bond market, further the use of panda bonds, and expand currency pools for multinational companies looking to invest in the domestic economy. Pan's comments were reported by Yicai.com.
  • The People’s Bank of China (PBOC) will focus on boosting confidence and enhancing growth whilst maintaining price stability, according to the PBOC's end of Q4 meeting. It's necessary to maintain reasonable and sufficient liquidity, and keep the growth rate of money supply and social financing aligned with nominal economic growth. For real estate demand side policy, it's important to improve financial services for new residents and young people. In addition to supporting the Central Economic Work Conference instructions, the PBOC said it will look to guide the healthy development of online financial services.
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