April 27, 2022 01:32 GMT
MNI picks keys stories from today's China press
The following lists highlights from Chinese press reports on Wednesday:
- The People’s Bank of China is likely to further reduce the foreign exchange deposit reserve ratio for banks, and use measures such as raising the FX risk reserve ratio and restarting counter-cyclical policies should the depreciation of the yuan continue, wrote Guan Tao, former forex official and chief economist at BOC Securities in a blog post. The PBOC’s move to cut the FX deposit reserve ratio by one percentage point on Monday is more of a signal to express concern about the current sharp yuan drop, and it will help curb any momentum of shorting the yuan, Guan said.
- China will step up infrastructure projects to drive economic growth, Xinhua News Agency reported late Tuesday citing a top economics meeting chaired by President Xi Jinping. Investments would be brought forward for projects that benefit industrial growth and safeguard national security, the meeting said. Optimising transportation, and oil and gas pipeline networks as well as new types of infrastructure, including computing platforms and broadband would be included, according to the meeting. Financing needs will be met and fiscal spending would be expanded, the meeting said.
- China should increase counter-cyclical economic measures and activate reserve policies amid growing expectations for the economic growth to bottom in Q2, the China Securities Journal reported citing analysts. Expanding investment, restoring consumption, stabilising foreign trade, and smoothening supply chain logistics will become the main focus, the newspaper said. It is expected that infrastructure investment, the key driver this year, may increase 10% in H1, and grow 5-7% for the whole year, the newspaper said citing analysts.