MNI China Press Digest July 4: Yuan, AI, Trade-in Finance

Highlights from Chinese press reports on Thursday:

• The People’s Bank of China will likely maintain intensity for supporting the Yuan to ensure limited depreciation of the currency which faces pressure in the near term, said analysts from CITIC Securities. Asian currencies have been further suppressed by election uncertainty in major countries which has increased demand for safe havens and strengthened the U.S. dollar index. Meanwhile, China’s economic fundamentals have not improved significantly, with housing stimulus not yet taking effect and risks from Sino-EU trade friction, said analysts from Donghai Futures. (Source: 21st Century Business Herald)
• China should promote the integration of AI with the real economy, given large language models are now disrupting R&D and production methods, Chinese Premier Li Qiang has said on a tour of Jiangsu. Governments at all levels should increase policy support for SMEs to grow into unicorns, and direct manufacturing towards high-end, intelligent and green development, Li added. (Source: Yicai)
• Authorities are implementing new debt financing tools, including customized green bonds, designed to support the large-scale equipment renewal and consumer goods trade-in projects across China, Securities Daily has reported. Zhang Xinyuan, head of research at Co-Found Think Tank said the new tools can reduce financing costs, help enterprises update equipment, and provide more investment opportunities. China Construction Bank recently participated in underwriting four medium-term notes with a total issuance of CNY5.6 billion, which will be partly used by China Southern Power Grid on power grid improvement projects, the paper said.