May 09, 2022 02:18 GMT
MNI picks keys stories from today's China press
The following lists highlights from Chinese press reports on Monday:
- The yuan may continue to weaken with the narrowing of interest spreads between China and foreign countries and volatility of cross-border capital flows, though it is unlikely to depreciate significantly as forex regulators have sufficient tools to keep it at a reasonable level, the China Securities Journal reported citing analysts. The central bank is expected to maintain yuan flexibility and promote the self-balancing of the forex market by adjusting supply and demand, the newspaper cited analysts as saying. The Journal noted that introducing counter-cyclical factors in the CNY central parity rate, adjusting the risk reserve ratio for forward forex sales as well as the liquidity of offshore yuan trade are options.
- The People’s Bank of China will soon launch a CNY100 billion re-lending programme to support transport, logistics and warehousing finance to smoothen the impact of pandemic curb measures, according to an article by the research wing of the PBOC’s Monetary Policy Committee published on a WeChat blog. Re-lending and re-discounts will be used to strengthen wholesale and retail sectors, hotels and catering and tourism with targeted tools to inject liquidity and boost credit, the article said. By end-March, the national re-lending and re-discount balance reached CNY2.47 trillion, according to the article.
- China will strengthen macro policy to stabilise economic growth with expansionary plans in boosting infrastructure investment and consumption as well as targeted monetary tools likely to be introduced, the Economic Information Daily reported citing Zhong Zhengsheng, chief economist of Ping An Securities. Local authorities are striving to stabilise Q2 GDP growth, mainly by ensuring major projects are kicked off as early as possible as well as increasing the security and stability of supply chains, the newspaper said.