MNI Press Digest Feb 19: Liquidity, G7-China, Growth Targets

The following lists highlights from Chinese press reports on Friday:

• The market should not overinterpret recent moves by the PBOC to drain liquidity from the market on the first post-holiday trading day this week, according to a commentary in Financial News, which is owned by the central bank. The commentary said the PBOC had signaled it intends to keep interest rates stable even as it unexpectedly drained CNY260 billion this week. The weighted average interest rate of DR007 remained stable at 2.23%, the newspaper added. The PBOC is focused on short-term benchmark rates while the amount of liquidity injected or drained in OMOs vary according to cash conditions, fiscal and market demand, the newspaper said.
• Any attempt by U.S. President Joe Biden to align G7 countries against China would not succeed as the alliance lacks solid common ground and the member states were not likely to change their positions on economic and currency cooperation with China, the Global Times reported citing Chen Fengying, a research fellow at the China Institutes of Contemporary International Relations. The state tabloid reported the comments ahead of a G7 virtual meeting on Friday. China has voiced opposition to group politics based on ideological divides, and advocated that global affairs should be collectively managed by different nations, the newspaper said citing the Chinese foreign ministry.
• Several Chinese provinces have set GDP targets of over 10% for 2021, while the majority have targeted over 6%, the state-run Economic Information Daily said in a front-page report. The targets were set in the regional parliamentary sessions for this year, the start of China's 14th 5-Year economic plan when regions are expected to compete and find new drivers for growth, the newspaper said. China's growth is expected to surge this year given the pandemic hindered normal economic expansion last year, the Daily said. Local authorities are also seeking to boost expansion in higher-value sectors including innovation and the digital economy.