MNI China Press Digest Aug 5: Growth, Offshore Yuan, Covid-19

The following lists highlights from Chinese press reports on Thursday:

• China must ensure its proactive fiscal policies produce more results, including using fiscal measures to support small businesses and manage the pace of budget investments and local government bond issuances, ensuring substantial work at the yearend and the beginning of next year, the People's Daily said citing Liu Yuanchun, the vice president of Renmin University. Policymakers should ensure liquidity is reasonably abundant and that real lending rate steadily declines, Liu was cited in the article, one of the frontpage series that focus on the economy. China will also accelerate the development of new-energy vehicles, investing in more charging facilities as part of its measures stimulating internal demand while also reducing carbon emission, the daily said.
• The PBOC is expected to accelerate the development of the offshore yuan market as said in its major work report for 2H, while analysts believe this should include deepening the market-based reform of the yuan as well as increasing FX derivatives trading products in major offshore yuan markets such as Hong Kong and London, the Securities Times reported. Though the Federal Reserve's future moves may upset global markets and cross-border liquidity, the PBOC should control the pace of injecting liquidity into the offshore yuan market to prevent risks, the newspaper said citing analysts.
• Chinese Vice Premier Sun Chunlan ordered officials to step up their sense of responsibilities and strictly enforce pandemic control measures, according to a statement on Gov.cn. Local authorities must treat the anti-pandemic efforts a priority, including the separation of workers who handle international cargos and passengers from those with domestic duties, the government said. A spate of resurging cases has made the outlook uncertain, Sun said.