MNI China Press Digest Sep 15: RRR Cut, Commodity, Tourism

Highlights from Chinese press reports on Friday:

• The People's Bank of China has cut the reserve requirement ratio (RRR) for all banks, except those that have implemented a 5% reserve ratio, by 25 basis points from Friday, the second cut this year. The cut will release over CNY500 billion of medium- and long-term liquidity, and reduce bank capital costs by CNY7-8 billion per year to help ease pressure from falling interest margins and profits due to the decline in existing mortgage interest rates, said Dong Ximiao, chief researcher at Merchants Union Consumer Finance Company. It further sends a strong signal to the market that the central bank is determined and capable of using a variety of policy tools to help stabilise economic recovery. (Source: Yicai)
• Commodity prices have bottomed since July, though macroeconomic data has not verified an economic rebound, according to Caixin. As of Sept. 8, the Nanhua Commodity Index has reached its highest level since the pandemic, recording 2555.88, a rise of 18% from May 26's low point. Recent relaxation to property regulations, subsequent upward CPI cycle and manufacturers' replenishing inventory at low prices have indicated the economy is near its bottom, said Guo Lei, chief economist at GF Securities. The Nanhua Index measures various commodity prices mainly including crude oil, rebar and iron ore. (Source: Caixin)
• The upcoming Mid-Autumn Festival and National Day holiday may create a new tourism peak as bookings for hotels and tickets for the eight-day holiday increased by nearly six times y/y, according to data by Fliggy, an online travel platform. Train tickets for many popular cities including Beijing and Shanghai have sold out, and hotel prices near tourist attractions in many cities have generally increased by more than 2-3 times. As the first long break without any Covid-19 restrictions, outbound travel bookings rose by over 20 times y/y, according to Fliggy. (Source: The Paper)