MNI China Press Digest May 26:Q2 Growth, More Policies, Credit

The following lists highlights from Chinese press reports on Thursday:

• All departments and local authorities must urgently ensure the economy achieves reasonable growth in Q2, and the unemployment rate drops as soon as possible, Xinhua News Agency reported citing Chinese Premier Li Keqiang speaking at a meeting with thousands of local officials on Wednesday. Detailed pro-growth policies should be released before end-May, as China must seize the current time window and strive to bring the economy back to normal track, according to Li. The State Council will send inspection groups to 12 provinces to oversee the implementation of policies, Xinhua cited Li as saying.
• China will increase policy intensity following high-level calls to stabilise economic growth at a quicker pace, likely including the issuance of special treasury bonds to stimulate consumption and support investment, and use of funds to boost credit, Yicai.com reported citing Lian Ping, head of Zhixin Investment Research Institute. The central bank may further reduce the deposit reserve ratio and interest rate if necessary and use structural tools, said Lian. China should increase rescue efforts to accelerate the resumption of production and ensure smooth traffic and logistics for supply chain stability, said Yicai citing Wen Bin, chief researcher of China Minsheng Bank.
• Banks in Shanghai should ensure stable credit growth by supporting the reasonable financing needs of real estate developers and construction companies, and better meeting credit demand of homebuyers, according to a statement on the People’s Bank of China Shanghai head office. Banks should not blindly cut off loans to companies affected by the pandemic, especially smaller businesses, and should help them ease financial pressure with loan extensions, renewals or adjusting repayment plans, the statement said.