MNI China Daily Summary: Thursday, April 22

MNI BRIEF: China To Quicken Resolving Local Debt Risks

RPT-MNI INTERVIEW: ECB's Wunsch Sees At Least Two Cuts By Dec

MNI BRIEF: Brazil CenBank Faces Greater Uncertainty - Campos

MNI: PBOC Conducts CNY2 Bln Via OMO Mon; Liquidity Unchanged

CHINA PBOC INJECTS CNY2 BILLION VIA 7-DAY REVERSE REPOS MON

EZ/UK T-Bill Calendar: 3/6-Month ATB Auction on Tuesday

EZ/UK Bond Supply Calendar: EU, FI Synds; IT, DE Auctions Tues

MNI: CANADA MAR INDUSTRIAL PRICES +0.8% MOM; EX-ENERGY +0.8%

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

MNI: Growth Drag From Net Zero Carbon Goal Can Be Offset-OECD

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MNI China Press Digest Mar 21: PBOC, Investment, Electricity

MNI (Singapore)
MNI (Beijing)

MNI picks keys stories from today's China press

Policy NewsCentral Bank NewsPBOCHomepageBond Market NewsAPACChinaEM Policy NewsEM Policy StoryEM Central Bank NewsPeoples Bank of ChinaPolicy StoryStoryRegion
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Highlights from Chinese press reports on Thursday:

  • The People’s Bank of China will likely lower the Medium-term Lending Facility rate and guide banks to lower deposit rates to promote the downward movement of the benchmark Loan Prime Rate, said Dong Ximiao, chief researcher at Merchants Union Consumer Finance. Though the March LPRs were kept unchanged this week, Dong believes the one-year and five-year maturities still have room for a 10 and 15 bp cut within the year, depending on changes in banks’ funding costs and the economic recovery process. It will be necessary to guide the nominal loan interest rate down quickly by cutting the policy interest rate to alleviate the upward pressure on the real-interest rate amid low inflation, said Wang Qing, chief macro analyst at Golden Credit Rating. (Source: 21st Century Business Herald)
  • Shanghai has launched a CNY100 billion interest discount program to encourage private investment in high-tech projects, Securities Daily reported. The municipal government encourages banks to increase credit supply to five major areas with preferential rates, namely new networks, new computing power, new data, new facilities, and new terminals. Included are projects of industrial Internet and facilities for blockchain, intelligent computing, and intelligent connected vehicles. (Source: Securities Daily)
  • China’s total electricity consumption was 1,531.6 billion kilowatt hours in the first two months, rising 11% y/y, People’s Daily reported citing the National Energy Administration. The power consumption in primary, secondary and tertiary industries grew by 11.1%, 9.7% and 15.7%. In southern provinces including Guangdong, Guangxi and Hainan, special equipment manufacturing, automobile manufacturing, computer communications and electronic equipment manufacturing all experienced double-digit growth in electricity consumption.
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Highlights from Chinese press reports on Thursday:

  • The People’s Bank of China will likely lower the Medium-term Lending Facility rate and guide banks to lower deposit rates to promote the downward movement of the benchmark Loan Prime Rate, said Dong Ximiao, chief researcher at Merchants Union Consumer Finance. Though the March LPRs were kept unchanged this week, Dong believes the one-year and five-year maturities still have room for a 10 and 15 bp cut within the year, depending on changes in banks’ funding costs and the economic recovery process. It will be necessary to guide the nominal loan interest rate down quickly by cutting the policy interest rate to alleviate the upward pressure on the real-interest rate amid low inflation, said Wang Qing, chief macro analyst at Golden Credit Rating. (Source: 21st Century Business Herald)
  • Shanghai has launched a CNY100 billion interest discount program to encourage private investment in high-tech projects, Securities Daily reported. The municipal government encourages banks to increase credit supply to five major areas with preferential rates, namely new networks, new computing power, new data, new facilities, and new terminals. Included are projects of industrial Internet and facilities for blockchain, intelligent computing, and intelligent connected vehicles. (Source: Securities Daily)
  • China’s total electricity consumption was 1,531.6 billion kilowatt hours in the first two months, rising 11% y/y, People’s Daily reported citing the National Energy Administration. The power consumption in primary, secondary and tertiary industries grew by 11.1%, 9.7% and 15.7%. In southern provinces including Guangdong, Guangxi and Hainan, special equipment manufacturing, automobile manufacturing, computer communications and electronic equipment manufacturing all experienced double-digit growth in electricity consumption.