MNI China Press Digest October 17: A-shares, Growth, Banking

The following lists highlights from Chinese press reports on Monday:

• The China Securities Regulatory Commission is working on a system to allow foreign investors to trade their positions within six months to facilitate investment in A shares, 21st Century Business Herald reported citing sources from regulatory departments. Currently, if a Chinese fund company which holds more than 5% of a company's stock through multiple fund offerings trades those shares within 6 months, it is not regarded as a short-term transaction, the newspaper said. Eligible foreign public funds are expected to enjoy the same arrangement when the new rules are announced, the newspaper said, adding that the proposed changes are in process.
• China will focus on smoothing the domestic cycle of supply and demand to boost economic growth, wrote Zhang Wenkui, researcher at the Development Research Center of the State Council in a commentary published by Caixin after President Xi Jinping's speech at the 20th CPC National Congress on Sunday. Top policymakers have been urged to drive domestic demand by improving people’s livelihood, accelerating the development of service sectors, and increasing the size of the middle class since 2011, but growth still heavily relies on investment and exports with a lower contribution from consumption, wrote Zhang. Maintaining disposable income at a good level is key, Zhang added.
• Six major state-owned banks issued statements late Sunday to show their support for the economy after President Xi Jinping’s speech at the 20th CPC National Congress, National Business Daily reported. Bank of China said it will focus on supporting technology, green development, inclusive finance, cross-border business, consumption, wealth management, supply chain and counties. Postal Savings Bank of China said it would boost credit supply in H2, continue to increase the loan-to-deposit ratio and the proportion of credit assets.