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MNI China Press Digest Sep 10: No Rate Cut, New Loans, Taliban

MNI (Singapore)

The following lists highlights from Chinese press reports on Friday:

  • The PBOC is still likely to reduce lenders' reserve requirement ratios to add liquidity, though it may not cut interest rates this year, as the economy is at a reasonable growth range, the Securities Times reported citing analysts. The real interest rate excluding inflation is historically low, and the two-year average GDP in Q3 and Q4 is expected to be around 5.5%, which is close to the potential economic growth rate, the newspaper said citing Wu Chaoming, chief economist at Chasing Securities. PPI, which soared to a 13-year-high of 9.5% in August, is likely to decline by year-end as the basis of comparison rise, and monetary policy should focus on stability without overreacting to prices, the newspaper said citing Wang Jingwen, senior researcher at Minsheng Bank.
  • China's new yuan loans in August may rise to CNY1.3-1.4 trillion from CNY1.08 trillion in July as the PBOC promotes reasonable growth in loan scale, while the aggregate financing may rise to CNY2.5-3 trillion from the previous CNY1.06 trillion, the Securities Daily reported citing analysts. M2 may continue to slow to 8.2% y/y from July's 8.3%, considering the low growth rate of aggregate financing, the newspaper said citing Zhang Yu, chief analysts at Huachuang Securities. M1 may also decelerate to around 4.4% y/y, due to the rapid decline in real estate sales and the contraction of off-balance-sheet financing, the newspaper cited Zhang as saying.
  • The Taliban plans to invite high-level delegations from China and Russia to Afghanistan, and hopes its own delegation can visit Beijing and Moscow, the Global Times reported citing an interview with spokesman Suhail Shaheen. The Taliban's forces will continue to provide security to the Chinese embassy in Kabul around the clock, Shaheen was cited as saying. The group was in contact with Chinese diplomats when its forces first entered Kabul, the newspaper said citing Shaheen. Shaheen dismissed the criticism of the Taliban's interim government that it is seen as not inclusive and does not represent the diverse ethnic groups in the country, according to the newspaper. The appointment of ministers at this time is to fill the vacuum, many vacant positions will be filled and changes and adjustments are possible before the formal government is set up, the newspaper said citing Shaheeen.
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