MNI China Press Digest June 7:Economy, Deposit Rate, Graduates

Highlights from Chinese press reports on Wednesday:

• Economists in China called for further policies to support the economic recovery, as the Yicai Chief Economist survey index fell in May to 50.27, the third consecutive monthly contraction but still above the 50 mark. Participants said the economy showed signs of a slow recovery, but it suffered from weak demand. The economy was also transitioning from old drivers, such as real estate, towards new growth industries like consumption, high-end manufacturing and new infrastructure. The economists forecasted May CPI to be 0.19% and total retail sales at 12.95%. The majority said the possibility of lowering the deposit and loan rates was relatively small. (Source: Yicai)
• Several state-owned banks have lowered their deposit interest rates, according to unnamed sources in the Securities Times. Some banks have cut yuan deposit rates by 5-10bp, and US dollar one-year rates to 4.3% from 5.0%, the paper said. Zou Lan, director of the Monetary Policy Department at the People's Bank of China recently stated commercial banks could adjust deposit interest rates based on market dynamics and their operating conditions. (Source: Securities Times)
• China will launch a major recruitment campaign to assist up to 10 million recent graduates to find work, the Ministry of Human Resources and Social Security announced on its website. One expert said the Government should improve supply and demand connectivity in the labour market, and use incentives such as tax cuts and subsidies to help firms expand employment. China faced a shortage of general workers, such as forklift truck drivers, and also skilled workers like CNC machine programmers, 21st Century Herald Said.