MNI China Press Digest April 9:Outflow, Local Banks, EU Grunt

The following lists highlights from Chinese press reports on Friday:

• China sees little risk of large-scale capital outflows despite the rise in U.S. Treasury yields and the appreciation of the dollar, the China Securities Journal said. China's economic fundamentals are solid with the growth forecast at 8.4% in 2021 according to the IMF, and its stable debt structure along with normal monetary policy will enhance the advantage of CNY assets, it said. China's opening policies will also overshadow any marginal capital flow pressure, the Journal said citing Zhang Yu, Huachuang Securities' macro chief analyst.
• China will enhance the governance and regulation of local financial institutions to improve the regional financial environment, said the Financial Stability and Development Commission headed by Vice Premier Liu He in a statement on Gov.cn. Local financial institutions should better serve small businesses and local residents to maintain a balance between financial supply and demand, the statement read. The Commission also urged the better use of IT to improve efficiency, and punishment for those failing to carry out their duties and avoid improper government interventions to stimulate the innovation of local financial institutions.
• The EU should increase dialogue with China to build trust and not become a "grunt" in a Cold War against China led by the U.S., said China Daily in an editorial. China's plans to pursue green development, upgrade consumption and further open up its market complement the EU's recovery plan, the Daily said, commenting after President Xi Jinping told Chancellor Angela Merkel to maintain EU "strategic independence." The EU has seemingly "jumped into bed" with the new U.S. administration by imposing unilateral sanctions on China for alleged human rights abuses in Xinjiang, and calling off a meeting on the concluded investment treaty, the Daily said.