MNI China Press Digest Aug 8: Macro, Bonds, Fiscal

Highlights from Chinese press reports on Friday:

• China’s macroeconomic policies in H2 will continue to exert force when appropriate while maintaining continuity and stability, a statement from the Ministry of Finance said, following S&P Global Ratings decision to maintain the nation's sovereign credit rating at “A+” with a “stable” outlook. Policies will focus on stabilising employment, enterprises, markets and expectations, the statement said. In the future, authorities will dynamically adjust policy reserves in a timely manner according to changes in the domestic and international situation and ensure the economy continues to improve steadily.
• China’s bond underwriters must accurately calculate costs in their bid offers, ensuring that quotes cover the entire business process and all applicable amortisations, including but not limited to, labour, travel, operating expenses, system development and other essential business outlays, according to a notice from the China Interbank Market Dealers Association. A senior bond market insider told Yicai that previously some underwriters have been willing to submit loss-making bids to capture market share.
• Local governments are expected to complete issuance of this year’s CNY4.4 trillion in new special bonds by end-October, experts told Yicai. Authorities plan to speed up fund deployment to spur projects, stabilise investment and support growth. Local governments have increased financing this year to acquire and reactivate idle land, aiming to balance land supply and demand, reduce idleness, strengthen regulation, ease debt pressures, and stabilise the property market.