MNI China Press Digest, Sep 30: Monetary Policy, Growth

MNI (Beijing) - The following lists highlights from Chinese press reports on Wednesday:

The PBOC may still make selected cuts to reserve requirement ratios this year, though a broad RRR cut is less likely, the Securities Daily reported citing Zhang Wei, the chief researcher of Kunlun Health Insurance. Monetary policy in Q4 will further strengthen targeted moves to ensure new financing mainly goes to manufacturers, private and small companies, while continuing with the tone of increasing efficiency and flexibility, the newspaper cited analysts following the Q3 meeting of the central banks' monetary policy committee. The PBOC may focus on precise injections and the strict supervision of funds, and not divert funds to the capital and real estate markets in the future, Zhang told the Daily.

China is likely to achieve annual growth of 2% on signs of a stronger than expected economic recovery, including 19.1% y/y growth in profits by industrial enterprises in August, Cao Heping, a professor from Peking University's School of Economics, wrote on Wednesday in a Global Times commentary. The recovery is being supported by improving consumption in areas such as transportation, entertainment and travel, which reflects more consumer confidence compared to sectors such as real estate and automobile sales, wrote Cao. Spending by students may also rebound as schools resume in September, Cao wrote. The sustainable special bond release program and the beginning of work on multiple infrastructure projects has also been positive for the recovery.