MNI China Press Digest June 18: GDP, Pension, SME Banks

Highlights from Chinese press reports on Tuesday:

• China remains on track for about 5.0% GDP growth in Q2 given May’s data results, according to experts interviewed by the 21st Century Business Herald. However, industrial production and domestic demand exhibited a marginal slowdown, according to Mingming, chief economist at CITIC Securities, noting May's higher retail sales were due to base effects. The government must stabilise the property market, speed up the issuance of government bonds and support SMEs, Ming added.
• Authorities have increased the basic pension by 3.0% from 2023 levels, for retirees who completed procedures before the end of last year, the Ministry of Human Resources and Social Security has announced. The decision enhances care for vulnerable retirees and people in remote areas, with the measure based on fairness and incentive mechanisms, the department said. The central government will provide appropriate subsidies for pensioners in western regions and old industrial bases, the department added. (Source: Global Times)
• Small and medium-sized banks in several provinces including Guangdong and Henan have lowered their deposit interest rates up to 60 basis points recently, Financial News reported. Rural commercial banks are leading the rate reduction this time, with some seeing the rate of five-year deposits lower than that of three-year products, the newspaper said. After multiple rounds of rate cuts in the past two years, it is now difficult to find time deposits with interest rates above 3%, the newspaper added. Banks will continue to cut deposit rates and reduce interest subsidies to lower funding costs and alleviate the pressure of narrowing interest margins, the News said citing Dong Ximiao, chief researcher at Merchants Union Consumer Finance.