© 1982-2022 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial
JPY

Yen Outperformance Continues

JGB TECHS

(U2) Outlook Remains Positive

AUSSIE BONDS

Bull Flattening, RBA Minutes Eyed

US TSYS

Asia Set To Assess Bull Steepening

AUSSIE 10-YEAR TECHS

(U2) Weaker into Weekly Close

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access
Trending Top 5
Topics

MNI China Press Digest June 1: High Debt, A Shares, Shanghai

MNI (Singapore)

MNI picks key stories from today's China press.

PolicyAPACChinaPolicy StoryStoryRegion
True

The following lists highlights from Chinese press reports on Wednesday:

  • China should maintain rapid economic growth to absorb its growing debt, and avoid a quick rise in domestic interest rates to keep the current high level of debt sustainable and avoid systemic financial risks, wrote Zhang Ming, senior fellow of the Institute of Finance and Banking at the Chinese Academy of Social Sciences in a blog post. China’s macro leverage ratio, meaning overall debt-to-GDP ratio could be as high as 303.8% by end-2021 if local government implicit debts and debts raised by their financing vehicles are included, said Zhang. At present, local governments bear the highest default risk and their debt-to-GDP ratio is as high as 106.6%, said Zhang.
  • The A share market is expected to continue an upward trend into June, supported by intensive pro-growth policies, the resumption of work and production from Covid-19 lockdowns and ample liquidity, the China Securities Journal reported citing analysts. The A share market showed resilience in May even in the event of tumbling U.S. stocks overnight, with the Shanghai Composite Index rising 4.57% last month, the newspaper said. The net inflow of foreign capital to A shares was CNY16.87 billion in May, the largest monthly inflow this year, the Journal said.
  • Shanghai has eliminated anti-epidemic checkpoints at bridges, tunnels and other points from June 1, and removed roadblocks to restore normal production and daily life after a two-month Covid-19 lockdown, CCTV News reported. Shanghai added five local Covid-19 cases and ten infections with no symptoms on Tuesday, according to the Shanghai Municipal Health Commission.
266 words

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.

The following lists highlights from Chinese press reports on Wednesday:

  • China should maintain rapid economic growth to absorb its growing debt, and avoid a quick rise in domestic interest rates to keep the current high level of debt sustainable and avoid systemic financial risks, wrote Zhang Ming, senior fellow of the Institute of Finance and Banking at the Chinese Academy of Social Sciences in a blog post. China’s macro leverage ratio, meaning overall debt-to-GDP ratio could be as high as 303.8% by end-2021 if local government implicit debts and debts raised by their financing vehicles are included, said Zhang. At present, local governments bear the highest default risk and their debt-to-GDP ratio is as high as 106.6%, said Zhang.
  • The A share market is expected to continue an upward trend into June, supported by intensive pro-growth policies, the resumption of work and production from Covid-19 lockdowns and ample liquidity, the China Securities Journal reported citing analysts. The A share market showed resilience in May even in the event of tumbling U.S. stocks overnight, with the Shanghai Composite Index rising 4.57% last month, the newspaper said. The net inflow of foreign capital to A shares was CNY16.87 billion in May, the largest monthly inflow this year, the Journal said.
  • Shanghai has eliminated anti-epidemic checkpoints at bridges, tunnels and other points from June 1, and removed roadblocks to restore normal production and daily life after a two-month Covid-19 lockdown, CCTV News reported. Shanghai added five local Covid-19 cases and ten infections with no symptoms on Tuesday, according to the Shanghai Municipal Health Commission.