MNI China Press Digest Feb 28: 5.5% GDP, Liquidity, Fin'l Risk

The following lists highlights from Chinese press reports on Monday:

• China is expected to set this year's GDP target around 5.5% at the upcoming National People’s Congress starting Saturday, as 29 out of 31 provinces set its growth target as around or above 5.5%, the China Securities Journal reported citing analysts. To realize the goal, China should advance infrastructure investment, promote the 102 major projects under the country’s 14th Five-Year Plan, and accelerate technology-based infrastructure, the newspaper said citing analysts. Monetary policy should focus on boosting overall demand by cutting RRR, lowering policy rates to reduce banks’ capital cost, and avoiding excessive appreciation of the yuan to ease export pressure, the newspaper said citing Wen Bin, chief researcher of China Minsheng Bank.
• China's March interbank liquidity is to remain ample as the PBOC will use various tools to offset the impact of tax season and short-term global financial market volatility following the geopolitical conflict, the Securities Daily reported citing analysts. RRR cuts, interest rate cuts, structural tools and open market operations are all in the central bank’s toolbox depending on domestic demand recovery and price level, the newspaper said citing Zhou Maohua, a researcher with Everbright Bank. Fiscal deposits at commercial banks in March will also help to smoothen the gap of CNY300 billion MLF matured, the daily cited analysts as saying. The PBOC had increased reverse repos last week, net injecting CNY760 billion at month-end, the newspaper added.
• China must properly balance pro-growth and risk-prevention goals and stick to the position that housing is for living and not speculation, the Economic Daily said in an editorial restating a directive from a recent meeting of the Communist Party Politburo. China must also strengthen the Party central committee’s control over financial work and continue to dismantle shadow banking to effectively prevent systemic financial risks, the newspaper said.