MNI China Press Digest Feb 4: Liquidity, Shanghai, Housing

MNI (BEIJING) - Highlights from Chinese press reports on Wednesday:

• The People’s Bank of China is expected to maintain net injection of mid-term liquidity in February by rolling over the maturing CNY500 billion of 6-month outright reverse repos and CNY300 billion of medium-term lending facility with excessive amounts, Shanghai Securities News reported citing analysts. The Bank on Wednesday rolled over the 3-month outright reverse repos with an additional CNY100 billion to meet increasing demand amid strong credit issuance and cash withdrawals before the Spring Festival. However, the increased rollover suggests that the likelihood of a near-term reserve requirement ratio cut has further decreased, the newspaper said citing analysts.
• Shanghai will aim for 5% growth this year, after growing better than expected at 5.4% in 2025, Yicai.com reported citing the municipal government’s work report. The government is leading more foreign businesses to invest in advanced manufacturing, modern services, cutting-edge technologies and green projects, as well as further implementing special initiatives to boost consumer spending and build the city into an international consumption center city, said Mayor Gong Zheng in his government work report as the city’s legislature and political advisory body gathered on Tuesday.
• More cities are expected to carry out the acquisition of second-hand homes for affordable housing, after Shanghai kicked off the campaign, Securities Daily reported citing analysts. This will boost the supply of affordable rental housing to meet the needs of new urban residents and young people. Government acquisition could also help to anchor existing home prices to a benchmark, alleviate homeowners' concerns about further declines, and thus encourage the replacement of housing, the newspaper said citing analysts.