MNI China Press Digest July 7: EU, Macro Policy, Yuan Loans

Highlights from Chinese press reports on Monday:

• China will take reciprocal measures against imported EU medical devices after the European Commission restricted Chinese companies and products from participating in its public procurement process, according to a notice from the Ministry of Commerce. A television news report from state media said EU exporters will be excluded for medical device tenders worth over CNY45 million, but European-funded companies in China can still participate. For non-EU companies, the proportion of medical devices imported from the EU shall not exceed 50% of the total contract amount.
• Authorities need to stabilise employment, enterprises, markets and expectations better, the Economic Daily commentary said, calling for quick policy support. The newspaper advocated for the prompt issuance of ultra-long-term special treasury bonds, noting that four upcoming issuances are ahead of schedule. The country’s policy toolbox remains well-stocked with additional room for macro policies, the newspaper said.
• New yuan loans are expected to reach about CNY2.1 trillion in June, with seasonal factors supporting growth from May’s CNY620 billion, Securities Daily reported, citing Wang Qing, analyst at Gold Credit Rating, who also highlighted last year's low base period comparison. He projected that aggregate financing would rise to approximately CNY4 trillion in June, up from CNY2.29 trillion in May, driven by a surge in government bond issuance and a rebound in corporate bond sales, supported by lower financing costs after the central bank’s reserve requirement ratio (RRR) cut in May.