MNI China Press Digest Nov 12: Perpetual loans, Zhou, Credit

The following lists highlights from Chinese press reports on Thursday:

The use of perpetual loans is seen by the PBOC as optimal in alleviating capital shortages in the real economy and replenishing large banks' capital, the PBOC-run Financial News said. The central bank is likely to further boost market-based Central Bank Bill Swap (CBS) operations and extend their use to support small-to-medium banks, the newspaper said.

China is right to take active anti-trust measures to prevent E-commerce sites from monopoly behaviour as it represses innovation and drives the accumulation of disproportionate wealth, the 21st Business Herald reported on Thursday citing Zhou Xiaochuan, the former President of the PBOC. China should beware how these firms control user data and personal information as they are now serving many public service areas, said Zhou. Better governance of the Internet is urgently needed to improve the efficiency of the digital economy and the Chinese voice in the global cyberspace, Zhou told the Herald.

China should see a more controlled pace of lending growth in November and December, taking total aggregate new lending for the year to just under CNY20 trillion, the Financial News reported citing Wang Yifeng, an analyst from the Research Institute of Everbright Securities. China is also likely to avoid strong credit tightening in 2021, Wang said. Social financing in November is likely to be around 13.5% to 13.7%, compared with 13.7% in October, he said.