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MNI China Press Digest Apr 21:LPR, Pension, Foreign Investment

MNI (Sydney)

The following lists highlights from Chinese press reports on Wednesday:

  • The PBOC is likely to maintain the loan prime rate at its current level after leaving it unchanged yesterday for the 12th month, the China Securities Journal reported citing analysts. However, banks may slightly increase their lending rates by a few basis points on the LPR given that some market rates climbed this year, it said. The rates for private and small companies as well as loans to support technological innovation and green development will decrease, while rates for the real estate sector will rise, the newspaper said citing Wang Qing, chief analyst at Golden Credit Rating.
  • China should boost old age pensions and channel them into capital markets needing long-term funds, the Shanghai Securities News reported citing PBOC Deputy Governor Li Bo. Chinese financial markets lack long-term capital, particularly owners' equity, while its economy is too dependent on loans and its industries lack technology investments, Li said at the Boao forum. The pension contribution in OECD countries accounted for 126% of GDP in 2018 while in China it was only 10%, Li said.
  • Anti-China forces cannot stop China's steady growth as foreign investors are unable to resist the appeal of the Chinese market, particularly given China's strong position in leading the global economic recovery, the Global Times said commenting on a speech by President Xi Jinping's appealing to foreign businesses at the Boao Forum. Foreign investment into China has not and will not be held hostage by forces instigating anti-China sentiment, and businesses know that only pragmatic cooperation will yield mutual benefits, the newspaper said.
MNI Sydney Bureau | +61-405-322-399 |
MNI Sydney Bureau | +61-405-322-399 |

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