MNI China Press Digest Dec 15: PBOC, Pro-Growth, Consumption

The following lists highlights from Chinese press reports on Wednesday:

The People’s Bank of China will keep liquidity reasonable and ample next year while making monetary policy more “forward-looking and targeted” through both short and long-term measures, so as to help promote stable growth demanded by last week’s top leadership meeting on the economy, the CEWC, according to a statement on its website. The central bank will also strengthen the flexibility of the yuan exchange rate and promote lower costs of capital raising through further reforming interbank market rates, the statement read.

China’s fiscal policies may play a bigger role in stabilizing growth next year, while monetary policies are likely to lean toward limited loosening to coordinate with fiscal stimulus, Yicai.com reported. China may further lower banks’ reserve requirement ratios and moderately lower policy rate if necessary, it said. Monetary policies will also need to be designed to boost financial support to small businesses, which face weak demand, insufficient cash, and impact from government policies, the news site said. China is likely to maintain tight controls over real estate while taking measures to ensure the sector’s “soft landing,” it said.

China is expected to stimulate growth by promoting the sales of green home appliances and new energy vehicles and increasing investment in high-tech and infrastructure that support decarbonization, Yicai.com reported citing analysts. Measures may include issuing vouchers and encouraging car sales in rural areas, the newspaper said. Boosting investment will be the key to preventing a slowdown, with infrastructure mainly focusing on supporting digital and green transform, as well as technology upgrade to ensure a stable supply chain, the newspaper said citing analysts.