MNI China Press Digest June 6:Debt/GDP, Unified Market, Fiscal

Highlights from Chinese press reports on Tuesday:

• China’s macro leverage in Q1 reached 281.8%, up from 273.2% in the previous quarter, according to the China Economic Daily. Looking forward, policy makers will stabilise macro leverage through policy support, deepening reform and opening up, the paper said. One expert noted Q1's increase was caused by a slowdown in nominal economic growth, and banks' usual new loan increases at the start of the year. The Government has front-loaded local government bond issuance in Q1 and expanded the central fiscal deficit, which has resulted in the macro leverage increasing, another expert said. (Source: China Economic Daily)
• China will introduce measures to unify its domestic market as it seeks high quality development, the State Council announced. At a recent meeting, State Council leaders said they will deepen reforms to improve market access and fair competition, as well as dismantle invisible local barriers and monopolies. The meeting was attended by Li Chunlin, deputy director at the National Development and Reform Commission (NDRC). He said the unified market would improve efficiency of resource allocation and release market potential. (Source: 21st Century Herald)
• China’s fiscal revenue should expand this year but factors such as long-term epidemic impacts and tax reduction policies bring uncertainty, according to Wang Zecai, a researcher at the Chinese Academy of Fiscal Sciences. A Ministry of Finance spokesperson said local government debt risks were distributed unevenly, but the overall financial situation remained healthy. In future, local governments will benefit from the economic recovery, self-help reforms and national support. (Source: Yicai)