MNI China Press Digest April 1: Ample Liquidity, PMI Rebound

The following lists highlights from Chinese press reports on Friday:

• The People’s Bank of China is likely to keep liquidity ample this month to meet an expected liquidity gap of about CNY300 billion, the Shanghai Securities News reported citing analysts. The central bank still has the policy space to cut reserve requirement ratios or policy rates in April, the newspaper said. Reducing the rate of the Medium-term Lending Facility is key to stimulating the loan demand of companies and residents, the newspaper said citing analyst Wang Qing at Golden Credit Rating. An interest rate cut this month is more likely as it can more effectively help corporates cut loan costs and prevent a falling real estate market, it said.
• China's manufacturing gauge can return to expansion in the next few months after the government stated its strong fiscal policy support, such as accelerated local government bond issuances that support infrastructure investment and help boost industrial production, Yicai.com said citing analysts. However, domestic Covid-19 outbreaks and commodity prices are having a greater-than-expected impact on the economy, putting pressure on growth, it said. Monetary loosening is now more necessary with a growing possibility of an RRR cut, Yicai said.