January 31, 2024 01:32 GMT
MNI China Press Digest Jan 31: Li Qiang, 10Y CGB, HK Listings
MNI (BEIJING)
BEIJING (MNI)
MNI picks key stories from today's China press
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Highlights from Chinese press reports on Wednesday:
- Chinese high-tech firms must make R&D investment to "leap-frog" development and catch up with world class standards, according to Premier Li Qiang. Speaking on a tour of advanced industries in Shaanxi province, Li called for deeper integration between industry, academia and research, noting firms should enhance digital intelligence and green technology to create new competitive advantages. Li visited firms including Xi'an Aisheng Technology Group, Xianyang Caihong Co, Xi'an Yisiwei and Xi'an Jiaotong University.
- Onshore and offshore investors continue to increase holdings of China Government Bonds amid rising expectations for loosening monetary policy, 21st Century Business Herald reported citing market insiders. A possible interest rate cut by the People’s Bank of China in February has fuelled the market’s enthusiasm for 10-year CGBs, which has also attracted investors concerned about fluctuations in the stock market during the Spring Festival. A large influx of funds has pushed up bond prices with the 10-year treasury yield hitting its lowest level since June 2002 at 2.455% on Tuesday. There may be limited room for further price increases with the yield falling below 2.5%, said a head of a private equity firm.
- Authorities in Hong Kong and the Mainland are considering accelerating the process for listing approval on the Hong Kong Stock Exchange, according to Paul Chan, Hong Kong's financial secretary. Chan, speaking at the HK Capital Market Forum, added discussions included adding an RMB desk for southbound stock trading. Going forwards, Chan emphasised funds will flow both ways and Hong Kong must make use of its unique advantages.
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