MNI China Press Digest Apr 22:Yuan, Capital Inflow, Zero-Covid

The following lists highlights from Chinese press reports on Friday:

• The net inflow of foreign capital into China will still be considerable in 2022, as China’s economy is resilient to withstand shocks and the country is resolute to keep expanding high-level opening up, Xinhua News Agency reported citing Fang Xinghai, vice chairman of the China Securities Regulatory Commission. Fang said it takes time for foreign investors to get familiar with the Chinese capital market, and they will return after new policies created uncertainties, Xinhua reported. From 2019 to 2021, a net of CNY887.4 billion of foreign capital has flowed into the A-share market, with foreign capital currently accounting for about 4.5%, Xinhua said.
• Many overseas investment institutions believe the yuan is unlikely to fall sharply as far as China keeps stable growth and balanced cross-border capital flow, and the recent weakening of yuan is more likely a correction of the previous high valuation, the 21st Century Business Herald reported citing an unnamed trader in Hong Kong. The correction of yuan can moderately release the accumulated depreciation pressure and a more flexible currency will help to stabilize growth and maintain a high level of safety and yield prospects for yuan assets, the newspaper said. Onshore yuan traded around 6.4472 against the U.S. dollar on Thursday, hitting an intra-day high of 6.4518, the weakest since November 2021.
• Shanghai will carry out nine major measures from Friday aiming to achieve zero community transmission of Covid-19 sooner, according to a statement on the municipal government’s WeChat account. Residents in locked-down areas are banned to leave their home, while those in controlled areas are not allowed to leave their residential complex, and gathering is strictly prohibited in the rest of the city. Intensive COVID-19 and antigen tests will be carried out in different areas, the statement said.