MNI China Press Digest Feb 11: Yuan Asset, Infra Bond, HK

The following lists highlights from Chinese press reports on Thursday:

• Foreign purchases of China’s domestic bonds are likely to steadily rise due to China’s resilient economy and a stronger yuan, the China Securities Journal reported citing economists. Institutional investors bought net CNY141 billion locally issued bonds last month, CNY51.6 billion more than in December, showing the attractiveness of yuan assets, the newspaper said citing monthly data by China’s forex trading center. Bond transactions by foreign investors in January rose 53% to CNY1.4 trillion, the journal said.
• China’s Ministry of Finance accelerated the approvals of local government special-purpose bonds to stimulate the economy, with CNY541.6 billion, or 37% of this year’s quota, issued by Feb. 10, China Securities Journal reported citing Wind data. No new special bonds had been issued yet in the same period last year. The proceeds from these debts, geared for infrastructure building, will stimulate the economy and financing activities, the Journal said citing economist Ming Ming with CITIC Securities. About 40% of the special bond proceeds were spent on municipal and industrial park infrastructure, the newspaper said citing analyst Zhou Yue of Zhongtai Securities.
• China is preparing to step in to help Hong Kong deal with surging Covid-19 infections, which numbered 986 on Thursday after exceeding 1,000 for the first time on Wednesday, the Global Times said. Central government health officials will convene experts from Hong Kong and neighboring Guangdong province in the city of Shenzhen to study anti-epidemic measures, the state-owned newspaper said. Hong Kong must stick with “dynamic zero” and cannot live with the virus because it is seeking a border reopening with the mainland to boost its economy, the newspaper said citing Ben Chan, a member of the Hong Kong Legislative Council.