MNI China Press Digest Feb 14: Pro-growth, SME, Iron Ore

The following lists highlights from Chinese press reports on Monday:

• The People’s Bank of China indicated its monetary policy will be even more proactive and continue to support growth in a report released on Friday, as it mentioned “greater force of cross-cycle adjustment” in its quarterly paper last week, the Financial News newspaper said citing analyst Xie Yunliang at Xinda Securities. January’s higher-than-expected credit data released last week also point to a short-term economic rebound, the newspaper said citing economist Li Chao of Zheshang Securities.
• Confidence of China’s small businesses in their development prospect rose for a third month as the government drums up pro-growth policies, the Shanghai Securities News reported citing an index by the China Association of SMEs, which in January rose 0.2 percentage point to 89.4. More SMEs are also more confident about the macroeconomy as the central government laid out this year's pro-growth policy leaning, the newspaper said. However, SMEs are still hindered by a lack of liquidity and financing due to slow payments and rising payables, it said.
• A rally in iron ore prices in China is unlikely to continue as several Chinese regulators step in to curb what they see as excessive speculation and curb steel production, the Securities Daily said citing industry experts. The Dalian Commodities Exchange last week released a notice to raise transaction fees, tighten regulation and warned against “fabricating rumors,” the daily said. The Ministry of Industry also released an order to curb steel capacity expansion, which is likely to reduce demand for iron ore, the newspaper said. Global iron ore price rallied almost 50% since November on the prospect of faster economic recovery.