MNI China Press Digest Nov 25: Local Bonds, Liquidity, 5.5%

The following lists highlights from Chinese press reports on Thursday:

• China should accelerate the issuance of this year's remaining local government special bonds and set up the issuance quote and distribution plan for next year appropriately, according to a Xinhua News Agency's statement following a Wednesday meeting chaired by Premier Li Keqiang. Local governments should promote the construction of well planned projects and strive to have the projects materialized early next year, the meeting said. The central government prohibits the misuse of funds on building renewals and leaving the funds unused, the meeting said.
• The People's Bank of China is likely to boost liquidity through the end of the year by more reverse repurchases and increased medium-term lending facilities, the Economic Information Daily said citing analyst Wang Qing of Golden Credit Rating, who commented following the central bank's CNY50 billion net injection on Wednesday. The PBOC may also cut lenders' reserve requirement ratios by the end of the year should it want to release dovish pro-growth signals, further promote the rebound of credit and social financing and reduce the economy's costs of financing, said the newspaper owned by Xinhua News Agency.
• China may set a GDP growth target next year at 5.5%, a rate that was achieved in Q2 and the highlight of 2021, with 5% being the floor, Ming Ming, the deputy director at Citic Securities research institute, wrote in the 21st Century Business Herald. Investment will be a key measure next year as the government pursues loose credit, stabilizing leverage and stabilizing growth, with the pace of growth in infrastructure and manufacturing investment likely to accelerate and prioritized, Ming said. While 5% is likely the pace registered this year, the top leadership has expressed a more pro-growth wish, so policy makers likely want to arrest the current downward slide, said Ming. China's exports may slow next year while consumption has limited room to expand, said Ming.