MNI China Press Digest April 26:Yuan, Econ Pressure, Stock Dip

The following lists highlights from Chinese press reports on Tuesday:

• The People’s Bank of China could use more tools to stabilise the yuan after it cut the foreign currency reserve requirement for banks by one percentage point to 8% on Monday, the Securities Daily reported citing Chang Ran, senior researcher of Zhixin Investment Research Institute. The cut is relatively cautious, compared with the two 2-pps hikes last year in response to the strong appreciation of yuan, Chang was cited as saying. The 1pps cut can release about USD10.5 billion of foreign exchange liquidity, which will promote the basic stability of yuan and meet the funding needs of repaying foreign debts, the newspaper said citing analysts.
• China should stabilise the economy via employment, taming prices, and ensuring supply, as unexpected changes in domestic and foreign situations have led to renewed downward pressure, Xinhua News Agency reported citing Premier Li Keqiang speaking at a work conference on Monday. Policies have already been announced should be implemented as soon as in H1 to help offset severe challenges, while local governments should shoulder the responsibility of safeguarding food and energy security as well as stabilising the industrial and supply chains, Xinhua cited Li as saying.
• The A-share market may fall further in the short-term amid epidemic outbreaks and U.S. tightening expectations before the Fed rate meeting in May, the Securities Times reported citing analysts. Some listed companies or important shareholders have repurchased and increased their holdings to buoy sluggish stock prices, while more than 2,500 stocks dropped over 8% on Monday with the Shanghai Composite Index down 5.13%, the biggest one-day drop in more than two years, the newspaper said.