November 11, 2024 01:31 GMT
MNI China Press Digest Nov 11: Deficit, Trump, CPI
MNI picks key stories from today's China press
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MNI (BEIJING)
Highlights from Chinese press reports on Monday:
- China is expected to raise its deficit-to-GDP ratio higher next year from 2024’s 3%, following the Ministry of Finance’s pledge to increase fiscal policy intensity, Securities Times reported, citing analysts. The country’s CNY10 trillion debt-swap plan will ease balance sheet pressure on local governments and financing vehicles, and increase their infrastructure investment capacity. The plan also allows local authorities to clear arrears owed to companies and boost business confidence and profitability, the newspaper said, citing analysts.
- China must intensify regional multilateral and bilateral cooperation should President-elect Donald Trump implement damaging policies, Cheng Shi, chief economist at ICBC International told Yicai. Beijing can work with the EU, ASEAN and other regions to deepen development whilst promoting the Belt and Road Initiative. China needs to expand new markets and maintain supply-chain stability to cope with trade pressure from the U.S., Cheng said.
- China’s CPI reached 0.3% in October, down from 0.4% previously, as the impact of extreme weather subsided and supply remained stable, according to analysts at China Merchants Macro. Vegetable and fresh fruit prices ended an upward trend, with vegetable prices returning to July levels, the analysts noted. An increase in pork supply due to high slaughter levels further weakened the year-on-year CPI support. Despite a strong consumer market during the National Day holiday in October, buyers held a cost-effective consumption pattern which limited the upward effect on prices.
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