MNI China Press Digest June 04: Bonds, Electricity, Caixin PMI

Highlights from Chinese press reports on Tuesday:

• Local governments are expected to issue about CNY830 billion of bonds in June, roughly similar to the same period last year to maintain a fast pace of issuance, Yicai.com reported citing Wen Bin, chief economist at China Minsheng Bank. This leaves about CNY2.79 trillion of local bonds to be issued in the second half of this year, with the average monthly issuance size around CNY460 billion, Wen said. The sales of local bonds had decelerated by about 20% y/y in the first five months, totalling CNY2.82 trillion to make way for the issuance of Treasury bonds, Yicai said.
• Guangdong, a major manufacturing province, saw electricity growth of 11.81% in Q1, with secondary and tertiary industries both exceeding 10% increases, according to 21st Century Business Herald. Guangdong's electricity demand from high-tech and equipment manufacturing, which best represents new productive forces, grew 2.52 pp more than manufacturing overall. Data showed highest sub-category growth rates in electronic equipment manufacturing, general equipment manufacturing, and electrical machinery, with y/y increases of 15.43%, 14.45%, and 14.10%, respectively.
• China's Caixin manufacturing PMI rose to 51.7 in May, a two year high, reflecting improved SME prosperity, according to Zhou Maohua, a macro researcher at Department of Everbright Bank. Going forwards, authorities should ensure continued manufacturing support and actively implement tax cuts, fee reductions, equipment renovation, and consumer goods trade-in policies. (Source: Securities Daily)