MNI China Press Digest July 25: Gov Debt, Export, Digital Yuan

The following lists highlights from Chinese press reports on Monday:

• China is likely to front-load next year’s local government special bond quota in the second half of the year to help boost infrastructure investment, as monetary policy is difficult to ease significantly amid rising inflation and the rate hikes overseas, Yicai.com reported citing analysts. CPI may be pushed above the 3% ceiling in some months in H2, with pork prices entering an upward cycle, though weak consumption and the recent correction in oil prices may help to ease some upward pressure, the newspaper said citing analysts. There is discussion in the markets that the Ministry of Finance may be considering bringing forward the issuance of CNY1.5 trillion of next year’s special bonds to this year, Yicai added.
• China’s exports are expected to maintain growth in the second half of the year, following the double-digital increases in H1, the China Securities Journal reported on the front-page citing analysts. By mid-July, the foreign trade cargo throughput of key ports monitored by China Ports increased by 5.9% y/y, 4.8 percentage points faster than the previous period, the newspaper said. At present, the U.S.’s domestic consumer demand is relatively good, with low inventories for automobile and auto parts as well as apparel, and demand from ASEAN countries, will drive up demand for Chinese upstream products, such as electromechanical intermediates, the newspaper said citing analysts.
• China’s e-CNY is legal tender in digital form and can be exchanged 1:1 with physical yuan, so it can be used to buy gold and foreign exchange, the Shanghai Securities News reported citing Mu Changchun, director of the Digital Currency Research Institute at the People's Bank of China, in responding to recent misunderstandings of e-CNY. The digital yuan is positioned at M0 and will meet the needs of personal anonymous payment, and the authority can inquire about user information only when suspected illegal transactions are triggered, the newspaper said citing Mu.