MNI China Press Digest Nov 27: Pork, Liquidity, Visa,

Highlights from Chinese press reports on Monday:

• China will implement a new batch of central pork reserve purchases by year end to promote a reasonable recovery in pig prices following excessive declines in the average pig-to-grain price ratio, according to the National Development and Reform Commission. Data from the Ministry of Agriculture showed pork prices in November decreased 1.3% m/m and 39.7% y/y. Yicai noted the live pig market had entered the traditional peak season, but prices have not increased due to insufficient demand. Wang Zuli, chief pork expert at the Ministry of Agriculture, said pork prices may fall after the new year during off-peak season.
• The People’s Bank of China will likely increase liquidity via open market operations to offset the maturity of a total CNY2.17 trillion of reverse repos this week, the Shanghai Securities News reported citing analysts. Liquidity remains tight in recent months following the issuance of special refinancing bonds for local government debt swaps and CNY1 trillion of China Government Bonds. The PBOC will likely resort to increasing reverse repos and medium-term lending facilities, and the funding situation may continue in a tight balance as policymakers fret funds lingering around financial institutions without flowing into the real economy.
• Citizens from six countries including France, Germany, and Italy will no longer need a visa to visit China, according to Mao Ning, Foreign Ministry spokesperson. Authorities will allow two weeks visa-free travel to China as they seek to boost foreign exchanges and open to the outside world, Mao added. Zhou Weihong, a tourism expert, said the economy will benefit from increased consumption in transportation, catering and accommodation. Another analyst expected the value of China’s inbound tourism to increase as a percentage of GDP, which currently lags behind other major nations. (Source: Yicai)