MNI China Press Digest, June 9:

     BEIJING (MNI) - The following lists highlights from Chinese press reports

on Tuesday:

     China's GDP growth over the rest of the year may be restored to

pre-pandemic levels and is expected to reach 3.1% for 2020, according to China

Securities Journal. Citing Zhu Jianfang, the chief analyst with leading

state-owned investment bank Citic Securities, the Journal said the ratio of

broad fiscal deficits to nominal GDP should be around 10%, signalling a more

expansionary fiscal policy. The ratio is higher than estimates by market

participants and puts China's fiscal stimulus on par with those of European

countries and the U.S, MNI noted. Zhu estimated that the fiscal stimulus would

boost GDP growth by 5.6 percentage points this year. 

     China's economic performance since May has beaten expectations and as a

result the central bank may not cut policy rates and reserve ratios as rapidly

as it did in earlier months this year, according to a commentary published by

Securities Times. The People's Bank of China is now leaning more on structural

monetary policies to support small-and-medium enterprises and private companies,

and also realise this year's economic development goals, the newspaper said. The

PBOC would conduct open market operations in the future with an unchanged goal

of easing credits, and significantly lowering borrowing costs for companies in

the real economy, the commentary said.

     The average May CPI estimate by 19 Chinese financial institutions was 2.9%,

lower than 3.3% in April, according to Securities Times. Citing Li Chao, chief

analyst with Zheshang Securities, the newspaper said inflation has continued to

ease as pork prices fell from their peak. Lower inflation increased the

possibility that the central bank would cut benchmark interest rates for

deposits and also cut rates for Medium-term Lending facilities to lower

borrowing costs for companies. CPI for May will be released on Wednesday.

--MNI Beijing Bureau; +86 (10) 8532-5998; email: archie.zhang@marketnews.com

--MNI Sydney Bureau; +61 405322399; email: lachlan.colquhoun.ext@marketnews.com

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