MNI China Press Digest July 29: Politburo, Market Rout, Yuan

The following lists highlights from Chinese press reports on Thursday:

• China's upcoming midyear Politburo meeting on the economy may decide against further loosening in H2 to leave policy space for next year, the 21st Century Business Herald reported citing researcher Zhang Jiqiang with Huatai Securities. The critical meeting, usually held at the end of July, decides on the theme for H2 economic measures, the newspaper said. The conference is likely to call for continued curbs on housing, promote carbon neutrality policies and discuss inflation, the newspaper said. Given that this year's growth pressure may be relatively lower than the uncertainties next year, policymakers may be reluctant to give another RRR cut and also delay fiscal boost till next year, the newspaper said.
• China's economy remains positive and the foundation of its capital markets is solid, Xinhua News Agency said in an editorial in an apparent effort to calm the routed domestic stock and other financial markets. In addition to a strong economy, the market has reasonable liquidity and the PBOC has expressed continued normal monetary policy space and further support to the real economy, the official news agency said. China continues to support businesses choosing where to list and to speed up the opening of its capital markets, Xinhua said. Addressing the newly toughened rules over fintech and curbs over investments in the after-school tutoring industry, which shook up some investors, Xinhua said the rules were meant to promote healthier social development and prevent excess capital putting pressure on the public education systems and the students. The authorities will further reform the capital market to respond to China's economic demand, Xinhua said.
• China is speeding up the trial use of its digital currency with the PBOC recently included China Merchant Bank as a digital currency operator, joining most of the country's big banks, telecoms as well as Ant Financial and Tencent Financial participating in the promotion of the digital currency's operations, the Economic Information Daily said. Provincial capitals including Hainan, Changsha and Xi'an were also joining other cities disclosing their report cards on the adoptions of the new currency in their areas, it said. However, the digital currency remains little understood by consumers and merchants, and so far the uses are limited to the issuances of low-amount red packets, the newspaper said.