MNI China Press Digest Feb 7: Pro-growth,Property, Strong Yuan

The following lists highlights from Chinese press reports on Monday:

• The People’s Bank of China will continue to promote credit growth to ensure monetary supply and social financing grow in line with nominal GDP, as well as boost lending to small businesses, innovation and green development, the Financial News, run by the central bank, said in a commentary on Sunday. The central bank is likely to continue keeping ample liquidity through flexible open market operations following a series of loosening measures in the last month, the newspaper said citing analysts. China is likely to introduce several more pro-growth policies in Q1, the newspaper said.
• China’s property market has “more space” to develop in the future given the growing urban population, the China Central Television reported citing Wang Yiming, a member of the central bank’s monetary policy committee. Wang was one of several government advisors interviewed by the state television. Urban long-term residents rose by 12 million at the end of last year given that the urbanization rate rose to 64.7% of the population, Wang said. The property market has turned more “rational” as the risks in the property sector had been “orderly rooted out,” CCTV said. China should “fully satisfy” people's housing needs and provide the capital needed for real estate development, CCTV said citing Liu Yuanchun, the President of Renmin University.
• The yuan may continue to show strength this year after gaining almost 9% in the past two years supported by China's low inflation, its active fiscal policy, its wider global acceptance and China's strong exports advantage, Caixin reported on Monday citing Gao Zhanjun, a senior researcher with the National Institution for Finance Development. However, the currency also faces uncertainties stemming from how the U.S. approaches the pace of easing and inflation. which impacts the dollar's strength, Gao said.