MNI China Press Digest July 13: Liquidity,Consumption, Exports

The following lists highlights from Chinese press reports on Tuesday:

• The PBOC's decision to cut banks' reserve ratios (RRRs) by 0.5 pp announced on July 9 won't likely channel money into the property market as the authorities had introduced centralized loaning for real estate a half year ago, the Economic Daily said citing Lian Ping, the head of research at Zhixin Investment and the former chief economist at Bank of Communications. Regional authorities will also strictly implement government policies prohibiting property speculation, the newspaper said citing analyst Wen Bin of China Minsheng Bank. The RRR cut should be considered a normal operation to manage liquidity and help small businesses obtain financing, not a change in the central bank's prudent monetary policy stance, the newspaper said.
• Consumer spending in China in H2 will continue to be impacted by recurring outbreaks both at home and abroad, and is unlikely to return to the previous usual level soon, the Shanghai Securities News reported citing Lian Ping, head of research at Zhixin Investment. Policymakers should try to encourage consumption by policies such as improving infrastructure supporting spending in smaller cities and rural areas, the newspaper said citing Wei Jianguo, a former Vice Minister of Commerce. A major rise in consumption likely won't happen until the October Golden Week holiday, Wei was cited as saying by the newspaper. The number of people traveling and tourism revenues in the second half will likely be around 80% of the levels in 2019, the newspaper said citing a study by the China Tourism Research Institute.
• China will seek to protect exports by targeted measures that help exporters manage higher costs and declining profits, the China Securities Journal reported citing Assistant to the Minister of Commerce Ren Hongbin. Chinese exporters are facing higher costs in freight, raw materials and labour, while a more volatile yuan threatens profits and weakens exporters' confidence in accepting orders, the newspaper cited Ren as saying. The commerce ministry will closely monitor the economic situation. increase policy support, and strengthen cooperation with those Belt and Road countries, Ren was cited as saying.