MNI China Press Digest Nov 13: Debt, Economy, U.S. China

Highlights from Chinese press reports on Monday:

• Up to 26 provinces have disclosed plans to issue special refinancing bonds to swap out off-balance sheet debts, with the total volume reaching CNY1.26 trillion, according to the calculations of Securities Daily. Guizhou province temporarily ranks first with a scale of CNY144.8 billion, followed by Yunnan, Hunan, Inner Mongolia and Liaoning which have over CNY100 billion to issue each. The People’s Bank of China will likely cut the reserve requirement ratio in Q4 to support bond sales and credit expansion, said Li Mingjin, senior investment consultant at Shaanxi Jufeng Investment, who does not rule out the possibility of an interest rate cut.
• Economists in China remain positive on the economy, with the Yicai Chief Economist Survey reading 50.84 in November, down from 50.89 last month, as participants expect strong upcoming data and for the economy to achieve this year's GDP growth target of 5%. Economists predicted average fixed-asset investment growth of 3.14% year-to-date in October, and for retail sales to grow 6.62% y/y, up 1.12 percentage points from September. Overall, experts said, despite recent positive signals, domestic demand remains low and more policy efforts are needed to boost market confidence. (Source: Yicai)
• The U.S. and China have prepared "economic results" ahead of the San Francisco heads of state meeting this week which include an agreement to strengthen the international financial architecture and promote a meaningful quota increase for the International Monetary Fund, according to Vice Minister of Finance Liao Min. Speaking to Chinese media at the end of his trip to the U.S., where he accompanied Vice Premier He Lifeng, Liao said the U.S. and China have agreed to resist decoupling and develop healthy economic relations. China expressed concerns regarding the U.S.’s investment restrictions on China and sanctions that suppress Chinese companies, Liao added.