MNI China Press Digest March 31: ESG, ASEAN, Lending Quality

Highlights from Chinese press reports on Friday:

• China and other countries need more policy support to aid the green transition, according to Ma Jun, former chief economist at the People's Bank of China (PBOC). Speaking at the Boao forum, Ma said coordination between price tools, non-price tools and incentives remains a challenge. Price tools can include carbon markets, while non-price tools focus on policy such as emissions reduction targets. Ma said a financial framework is also needed to mobilise social capital to help drive the transformation. Firms need guidance to strengthen their carbon accounting and disclosure ability and implement appropriate emissions reduction technologies. (Source: 21st Century Herald)
• The strong engagement of ASEAN countries at the Boao forum shows they are united in pursuing economic cooperation and development, and will resist US efforts to divide them, according to China's nationalist paper The Global Times. The US has pursued policies that have brought uncertainty and led to a split in the global economy, while China has promoted high-level opening and inclusive development, the paper stated. If the US continues to disrupt and divide supply chains, this will present risks to the global economy. The more the US engages in "decoupling," the wider China will open its door, the Global Times continued.
• The local government of Dongguan, an industrial city in the Pearl River Delta, has detailed policies for banks to support high-quality economic growth. Local authorities want the finance industry to increase medium- and long-term lending to manufacturing and ensure the growth of credit to the sector exceeds the average rate for the wider economy. A report produced by the local government noted financial support for the development of key industrial chains should be improved and banks establish manufacturing centres and manufacturing officers. Finance should ensure industry and capital are deeply integrated, according to the report. (Source: 21st Century Herald)