MNI China Press Digest Jan 23: Liquidity, PBOC, Vouchers

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

• The People’s Bank of China is unlikely to cut the reserve requirement ratio to address seasonal liquidity demand before the Spring Festival, after introducing a series of structural measures, Securities Daily reported citing Wang Qing, analyst with Golden Credit Rating. The net injection of medium-term liquidity in January reached CNY1 trillion, after the PBOC rolled over matured Medium-term Lending Facility and outright reverse repos with excessive amounts. Thus, the pace of short-term liquidity injections is likely to be more moderate, though room for interest rate and reserve requirement ratio cuts remain within the year, the newspaper said citing analysts.
• The People’s Bank of China will continue to maintain stable operation of the financial market and support stable development of the capital market, said PBOC Governor Pan Gongsheng in an interview with Xinhua News Agency. The central bank will manage expectations effectively and keep the yuan stable at a reasonable and balanced level, while strengthening supervision of the bond, foreign exchange, money, bill and gold markets, said Pan. The Bank will also establish a mechanism for providing liquidity to non-bank institutions under specific circumstances, Pan added.
• China will provide consumption vouchers for elderly care services to seniors with moderate or severe disabilities around the nation, Yicai.com reported citing a statement by Ministry of Finance and one other department. Eligible seniors can apply for a monthly subsidy of up to CNY800 for services including rehabilitation nursing and day care, to be distributed in the form of electronic vouchers.