MNI China Press Digest Dec 27: PBOC, Shanghai, Investment

The following lists highlights from Chinese press reports on Monday:

• The People’s Bank of China will increase the intensity of structural monetary policy tools to support small and micro enterprises as well as individual business owners, according to a statement on the central bank website on Saturday following the Q4 meeting of the Monetary Policy Committee. The effort includes implementing carbon emission reduction supporting tools and special refinancing to promote the clean use of coal. The prudent monetary policy will be more “initiative-taking,” forward-looking and independent, so to increase support for the real economy, the statement said. It will also enhance the flexibility of the yuan exchange rate, strengthen expectation management, and maintain the basic stability of the yuan at a reasonable and equilibrium level, the PBOC said.
• China should study and promote the establishment of an international board in the construction of Shanghai International Financial Center, so to allow good companies from Belt and Road countries to raise funds in the Chinese market, the Shanghai Securities News reported citing Former PBOC Governor Zhou Xiaochuan. The Shanghai International Financial Center should focus on guiding the inflow and outflow of domestic and international funds via the equity and bond market, as well as deepening fund-raising activities, Zhou was cited as saying. Regulators should also improve the transparency of standards concerning currency exchange, accounting, and language, and increase investor protection, the newspaper said citing Zhou.
• China’s infrastructure investment is expected to accelerate moderately in 2022 as local governments will focus on promoting major construction projects as well as public services to stabilise the economy, the Securities Times reported citing analysts. But a surge in infrastructure investment is unlikely because of tough regulations on the real estate market, strengthened management of public-private partnership (PPP) projects and restrained fundraising by local government financing vehicles as well as declining non-standard financing, the newspaper said citing Tao Jin, deputy research head of Suning Institute of Finance.