MNI China Press Digest Jan 6:Yuan, Pro-Growth, Green Invest

The following lists highlights from Chinese press reports on Friday:

• The Chinese yuan in 2022 will be largely dependent on the outlook of the country's exports, which may continue to be supported if the pandemic hinders recoveries of overseas economies, the Economic Daily reported citing Guan Tao, a former forex official. Guan also noted that the Federal Reserves may hike interest rates earlier than expected, while China still has room for easing given tamed inflation, though this may lead to narrowed China-U.S. interest rate spread and a weaker yuan, the newspaper said.
• China should introduce countercyclical policies as soon as possible, as the decline in economic growth coupled with slower inflation seen in December may last up to a year without sufficient stimulus, said 21st Century Business Herald in a commentary. The cooling real estate sector has brought about a rapid economic slowdown, restrained industrial products prices, and dampened credit-based liquidity, the newspaper said. Net exports may weaken as major economies turn to monetary tightening, while high-end manufacturing and new energy are not enough to be the main driver, the newspaper said.
• China will carry out timely pro-growth policies to keep the economy operating within a reasonable range, wrote He Lifeng, director of National Development and Reform Commission in a CPC-run magazine. The ministry will focus on expanding domestic demand, accelerating debt issuances to fund infrastructure projects, wrote He. The government will create a sound economic and social environment ahead of the 20th National Party Congress this year, wrote He.
• China may need a total investment of CNY150-300 trillion to achieve its carbon emission peak and neutrality goals, so it requires many domestic and foreign investors to participate in the country’s green financial market, wrote Liu Guiping, vice governor of the People’s Bank of China in an article published on the PBOC-run magazine China Finance. The central bank will promote green finance in the Guangdong–Hong Kong–Macau Greater Bay Area by encouraging domestic and overseas green banks, securities and funds to set up headquarters for green business in the areas, as well as facilitating interconnection of the financial markets, wrote Liu.