September 22, 2022 02:01 GMT
MNI summarises the key stories from the Chinese press.
The following lists highlights from Chinese press reports on Thursday:
- China’s real interest rates should not be significantly reduced in the short term as they are below the potential economic growth rate and any large reduction could cause unwanted side effects, the 21st Century Business Herald reported citing an unnamed state-owned bank bond trader. The central bank’s Monetary Policy Department said in an article on Tuesday that the country’s deposit and loan interest rates, which are slightly lower than the potential growth rate, are viewed as being at a reasonable level that provides room for policy changes. The real interest rate after deducting inflation is around 1-3% compared to expected GDP growth of 3-4% this year and a 5% potential economic growth rate, the newspaper said citing Wu Chaoming, vice president of Chasing Institute.
- Issuance of China Government Bonds (CGBs) has grown rapidly this year, notably in ultra-short-term maturities, to help fund a fiscal deficit and stabilise economic growth, the Securities Daily reported. A total of CNY6.23 trillion of CGBs were issued as of Sep 21, a rise of 33.8% y/y, the newspaper said citing data from iFinD. Bonds with maturities of less than a year accounted for 31.36% of the total compared with 22.07% in same period last year. China will use short-term treasury bonds to raise funds for tax rebates and ensure the operation of local governments, the newspaper said citing Wang Xiaolong, director of the Treasury Department of the Ministry of Finance.