MNI China Press Digest Nov 16: Q4 GDP, Liquidity, Covid Policy

The following lists highlights from Chinese press reports on Tuesday:

• China's GDP growth in the fourth quarter faces a number of uncertainties, including recurring cases of Covid-19, which have been more particularly widespread in November, the 21st Century Business Herald reported citing Zhang Yongjun, an economist with China Center for Economic Exchanges. Exports in November and December this year may be weaker than usual given that the global shipping bottleneck prompted buyers to prepare orders five months ahead of normal timeline, the newspaper said citing analyst Zhang Yu of Huachuang Securities. GDP may slow to between 4% and 4.5% from 4.9% in Q3, the newspaper said.
• China may mainly use structural monetary tools to ensure liquidity, with Open Market Operations playing a significant role "smoothening" out short-term liquidity volatilities, the Economic Information Daily said. While cutting banks' reserve requirement may still be necessary, there needs to be a "catalyst" and the market shouldn't place high hopes on a rate cut, the Xinhua-owned newspaper said. The comment came after the PBOC on Monday conducted CNY1 trillion MLF and CNY10 billion reverse repo, net-injecting CNY910 billion, which was a pre-emptive measure ahead of maturing MLFs and tax remissions which drain liquidity. The central bank has increased reverse repo since Nov. 3 and ensured "loose-leaning" stable liquidity, said the newspaper.
• China's "dynamic zero-Covid policy" will not weaken the society's "political enthusiasm and rationality" for opening up to the outside world, even as some in the west laugh at China's isolation and say it will increase China's suspicion of everything in the west, the Global Times said in an editorial. The ideas of closing the doors to develop alone and completely part ways with the West are not advocated in China, it said. While the U.S. and other western nations are opening the doors faster, China's insistence on the dynamic zero-COVID policy is to adhere to scientific epidemic prevention and control, in line with China's huge population, urban-rural gap, and insufficient medical resources, the officially-run newspaper said.