MNI China Press Digest July 9: GDP, Bond Connect, Employment

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

• China’s economy is expected to grow 5.07% y/y in Q2, slowing from 5.4% in Q1, Yicai.com reported, citing the average forecast of economists. First-half growth was mainly driven by front-loaded exports, counter-cyclical infrastructure investment, and the consumer trade-in programme, the newspaper said. Economists have also revised up their full-year GDP growth forecast to an average of 5.02% from 4.83%, with some anticipating additional policy support in response to weakening external demand, according to Yicai.
• The People’s Bank of China said Tuesday it would allow more mainland-based institutions to invest offshore through the Bond Connect scheme, expanding access to non-bank investors such as brokerages, insurers, mutual funds, and wealth managers, Shanghai Securities News reported, citing Jiang Huifen, deputy director-general of the PBOC’s financial market department. The expansion aims to ease “asset shortage” pressures amid falling domestic interest rates, enhance financial market connectivity, and accelerate the internationalisation of yuan-denominated assets, the newspaper said, citing market insiders.
• The National Development and Reform Commission has allocated an additional CNY10 billion in central budget investment to launch a work-for-relief campaign aimed at boosting employment and incomes, Securities Times reported. The funding will support 1,975 local government projects, with an expected CNY4.59 billion in labour payments to help an estimated 310,000 migrant workers return to rural areas, the newspaper said.