MNI China Press Digest Mar 23: RRR, Rate Cut, Evergrande

The following lists highlights from Chinese press reports on Wednesday:

• China may make a full-scale or targeted cut to banks’ reserve requirement ratios in April to boost liquidity and further stabilize growth, the Securities Daily said citing analysts. There is a narrowing window for China to cut its lending rates, as the U.S. Federal Reserve is expected to further hike interest rate by 50 bps and begin shrinking its balance sheet in May, the newspaper said. Growth in China's new loans in March may slow y/y, estimated at CNY2.2 trillion, continuing a slowdown in February, as policy effects weaken, while loans by residents and companies may not improve significantly, the newspaper said citing researcher Tao Jin of Suning Institute of Finance.
• The People’s Bank of China is likely to lower its 5-year Loan Prime Rate in Q2 to guide mortgage rates lower and spur housing demand, the 21st Century Business Herald reported citing Wang Qing, analyst with Golden Credit Rating. Many of China's smaller cities with weak housing demand will further relax purchase restrictions, while migrant workers without local household registrations are expected to receive credit support, the newspaper said citing Xu Xiaole, analyst at Beike Research Institute. In March, 82 out of 103 key cities cut mortgage rates, registering the largest monthly drop since 2019, the newspaper cited Xu as saying.
• China Evergrande Group said it will unveil a debt restructuring proposal for its creditors by the end of July while ensuring the delivery of its real estate projects, Yicai.com reported citing the company’s call with investors on Tuesday. The company will make efforts including promoting the restructuring of its property management and auto subsidiaries with third-party investors, Yicai said citing the company. Evergrande owes total USD21.7 billion in overseas debts, including USD19.4 billion offshore bonds and USD3.3 billion private and project financing, Yicai said citing the company. Evergrande delayed publishing its financial results for 2021 this week citing incompleted audit, the newspaper said.