MNI China Press Digest May 12: Property Tax, PPI Gain, PBOC

The following lists highlights from Chinese press reports on Wednesday:

• China may not introduce a property tax soon given its economy is recovering and in transformation, the Shanghai Securities News reported citing Zhang Yiqun, a member of the Society of Public Finance of China affiliated with the Ministry of Finance. Macro policies need to be consistent and stable to solidify the post-pandemic growth, so the environment is "immature" for such a tax, Zhang said in an apparent attempt to ease concerns after property tax was raised by the ministry in recent reports. China will nonetheless increase controls over the property markets in core urban centers, Zhang was reported saying.
• China's PPI is likely to further gain 7% y/y in May following a 6.8% y/y increase in April, the fastest pace in more than three years, before slowing in Q4, the 21st Century Business Herald said citing Wu Chaoming, the chief economist with Chasing Securities. The curent rising prices of commodities may not lead to higher CPI given competition among producers and moderate demand from consumers, while the strong yuan also helps tame prices of imported material, Wu was cited saying. April's CPI and PPI likely won't prompt changes in central bank policies, the newspaper said citing analysts.
• The PBOC may maintain policy rates for open market operations for the rest of this year, judging by the Q1 monetary policy report released on Tuesday, which said the effects of rising U.S. Treasury yields and fast increases of commodity prices are both under control, CITIC Securities said in a research note. The central bank is likely to continue relying on daily OMOs to moderate daily repo rates as a benchmark, CITIC said.