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MNI China Press Digest Mar 13: PBOC, Stock Market, Innovation

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MNI (Beijing)

Highlights from Chinese press reports on Wednesday:

  • The People’s Bank of China will likely cut the reserve requirement ratio and the medium-term lending facility rate in Q2, said Wang Qing, chief macro analyst at Golden Crediting Rating. PBOC Governor Pan Gongsheng signaled further RRR cuts last week after pointing out the current 7% average. Lian Ping, chairman of the China Chief Economist Forum said the PBOC may further increase pledged supplementary loans to meet the funding needs of the “three major projects” including affordable housing. The expanded use of structural tools will also bring about aggregate expansion, Lian added. (Source: Economic Information Daily)
  • Foreign investor sentiment over the A-share market has turned positive amid continued improvement of economic fundamentals, Economic Information Daily reported citing analysts. As of Tuesday, the net purchase amount of northbound funds this year reached CNY52.3 billion, exceeding the CNY43.7 billion for the whole of 2023, according to Wind Information. The moderate support from credit and fiscal policy, without flood-like stimulus, remains market positive, analysts said. Last year’s pessimistic expectation for the economy was fully priced, and the market was sensitive to the marginal improvements starting this year, the analysts added.
  • Policymakers should expand support of new productive forces to include new types of business models and demand behaviours, according to Liu Zhongfan, member of the Standing Committee of the CPPCC National Committee. Liu said developing new productive forces will need institutional reforms to enhance integration between the science and innovation sector with the wider economy and industry. Officials need to protect the intellectual property value of researchers, Liu added. (Source: 21st Century Business Herald)
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