MNI China Press Digest April 27: Market, Rate Hike, Low Carbon

The following lists highlights from Chinese press reports on Tuesday:

• The worsening COVID-19 outbreak in India and the panicked reaction on global markets will have a limited spillover effect on China's financial markets as investors had previously shifted to safer assets in response to the recent weakness of the dollar index and fears of a U.S. stock market correction, the China Securities Journal reported. Chinese producers of pharmaceutical ingredients may benefit from India's shortage, it said.
• China is unlikely to raise interest rates because inflation is under control despite rising commodity prices and global inflation, the 21st Business Herald reported. Monetary policy changes in emerging countries have a limited impact on China and the PBOC will maintain its strategic focus on "not making a sharp turn", it said citing Xie Yaxuan, the chief macro analyst at China Merchants Securities.
• China's green goals of achieving carbon peak and neutrality by 2030 and 2060 may lead to a sharp drop in local tax revenues particularly in some resource-dependent provinces, while other provinces may need to share the low-carbon transformation costs and technologies, Caixin reported. The mining, power and construction industry account for as much as 48% of the revenue of Shanxi province and 39% in Inner Mongolia, while Shanghai, Beijing, Jiangsu and Zhejiang provinces account for the lowest proportion, Caixin said citing a report by Sequoia. Most of the 3,000 coal-fired generating units and 5,000 coal mines will be shut down, possibly leading to asset shelving, the newspaper said.