MNI China Press Digest October 26: PBOC, A-Shares, Liquidity

The following lists highlights from Chinese press reports on Wednesday:

• The People’s Bank of China and the State Administration of Foreign Exchange said they will strengthen departmental collaboration to maintain the healthy development of the stock, bond and property market, and stabilise the yuan at a reasonable and balanced level, according to a statement on the PBOC website late Tuesday. The China Banking and Insurance Regulatory Commission said on its website on Tuesday that financial risks are generally restrained and the financial system is generally stable, and the capital market has long-term investment value. The China Securities Regulatory Commission called for increased confidence in the sound development of China’s economy in the long run, according to a statement on its website.
• China will support qualified foreign-funded enterprises to raise funds by listing on the Main Board, the Science and Technology Innovation Board, the ChiNext Board, the Beijing Stock Exchange, as well as issuing corporate bonds, Caixin reported, citing a document released by the National Development and Reform Commission and five other departments late Tuesday. There is no legal obstacle to their listing in China as only a few among the 168 listed foreign-funded companies are directly controlled by foreign institutions, Caixin reported. The new rules seek to expand the inflow of foreign capital and stabilise the scale of foreign investment, Caixin added.
• The PBOC has increased net injections of liquidity by lifting reverse repos to more than CNY200 billion a day to cushion the impact of the traditional tax season and government bond issuance, the China Securities Journal reported. Tax payments will drain liquidity mainly on Wednesday and Thursday, though liquidity will gradually become looser in early November, the newspaper said citing analysts. The PBOC is expected to keep using open market operations and structural monetary policy tools to maintain reasonably ample liquidity through the end of the year, the newspaper said citing analysts.