China's NPC and CPPCC press conference: Chinese State Planner Head says sees stronger economic growth trend this year; PBoC Governor says there is still room for RRR cuts; Will maintain appropriate increase in money supply

ECONOMY

• Economy is likely to see a good start in Q1.


• Notes of risks and "hidden dangers in certain sectors".


• Customs statistics show that exports increased by about 10% in Jan-Feb.


• Economic recovery will be consolidated and strengthened; will step up macro economic policy adjustments this year


• Making progress in addressing further risk

POLICY

• Have to tools to support growth of Chinese economy.


• Will take targeted and systemic steps.


• Will strengthen coordination between fiscal, monetary, and industrial policies.


• MOF will study and implement structural tax reduction and fee reduction policies.


• PBoC still has sufficient room for monetary policy.


• PBoC governor says there is still room for cutting RRR.


• Will maintain appropriate increase in money supply.


• Monetary policy will promote mild rebound in consumer prices.


• Will keep Yuan basically stable.


• Will step up relending facility for tech innovation.


• Will further enhance the effectiveness of monetary policy.


• Will promote mild rebound in consumer prices.


• PBoC will help consolidate and strengthen economic recovery.

BONDS

• A large chunk of Treasury bonds issued last year will be used this year.


• Issuance of ultra-long special treasury bonds in years to come is a major policy aimed at boosting investment, consumption, and support long-term high quality development.


• It will be used for key technology innovation, urban-rural development, regional coordinated development, food security, and high-quality population development.

INVESTMENTS

• Will encourage private firms to participate in major national projects.


• Will support expansion of private investment.


• Will further boost return on investments.


• Wil improve the investment environment.

2024 FISCAL POLICY

• Will intensify counter and cross cyclical adjustments.


• Proactive fiscal policy is of great importance.


• Government spending will be intensified.

STOCK MARKET

• Recent stock market volatility exposed deep-seated problems.


• Will take steps to rectify market risks earlier.


• Will crack down heavily on market manipulation.

FOREIGN TRADE

• China faces severe foreign trade situation this year.


• Geopolitical tensions will affect China's foreign trade this year.


• Will support high quality firms to list shares overseas.

Analysis details (07:36)

• Official Work Report released yesterday - Link to release; Link to analysis.

06 Mar 2024 - 07:12- Fixed IncomeEconomic Commentary- Source: Newswires